All 70,000 Uber UK drivers are now entitled to a minimum wage and holiday pay. The company behind the well-known taxi app will treat them as “workers”.
According to Uber, this is a unique classification under British labour law, which falls between the classifications of a self-employed person and an employee by standards.
The company has treated its drivers as self-employed, which reduces their rights under the law. Uber is taking the step because of a recent UK Supreme Court ruling. This more or less forced Uber to make changes.
That statement was seen as a setback for Uber and could, according to experts, jeopardize the business model in the United Kingdom, the most important European market for Uber.
Uber has long been criticized for the self-employed contracts it works with. Globally, the company has conducted multiple lawsuits over its business model with varying degrees of success. In the US state of California, Uber took the lead last year when its business model was challenged with contractors.