While no longer the near-monolithic
face of global ride-hailing services, Uber is still a multinational company
with a great reach and a major pillar of the international “gig economy.” That
last part has also been the source of much flak directed at Uber, particularly
at the arrangement it has with drivers doing ride-hailing under their name.
Since the beginning, Uber drivers have been classified as independent contractors
rather than employees, which both give them working flexibility while also not
giving them formal employment benefits. Several countries have taken Uber
Technologies Inc. to court over the issue, among them the UK.
TechCrunch reports that Uber has agreed to classify its drivers in
the United Kingdom as workers, with all the benefits that entails. The company
announced this on Tuesday, March 16, just about a month after they lost their
appeal to the British Supreme Court regarding a case filed since 2016 regarding
the designation of Uber drivers. While “workers” is still a step down from
being regarded as actual employees, this new designation will have Uber provide
for their drivers a minimum wage, holiday with pay, and even a pension plan.
These and other benefits are to become effective March 17.
The 2016 case that led to this
decision was filed by Uber drivers complaining that despite being independent
contractors, the amount of control the company had over their daily work activities
was similar to being outright employed; thus they might as well gain employment
benefits out of it. Uber would fight the case, lose, and appeal repeatedly
until the Supreme Court itself ruled in favor of the drivers this February
2021. The ride-hailer’s argument was that the rigid classification of workers
removes from them the freedom to work as they wanted, and that any benefits
must go hand-in-hand with flexibility.
Meanwhile, at Uber’s home in
California, drivers for them and similar services such as Lyft and DoorDash are
back to being classified as independent contractors following the November 2020
passage of Proposition 22. Uber is now pushing for similar legislation in the
European Union. While the UK might not be affected on account of Brexit, this
is still a matter of concern that might undo the drivers’ recent court victory.
Image courtesy of NY Times
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