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Uber app in London (icon): More rights for drivers
Photo: Oli Scarff / Getty Images
There is a small revolution in the world of the “Uber” driving service: In the future, more than 70,000 Uber drivers in Great Britain will expect minimum wages, paid vacation and other benefits.
After years of litigation and a defeat before the Supreme Court, the company has now issued a mandatory notification to the US stock exchange regulator that it will no longer treat its drivers in Great Britain as independent entrepreneurs, but as employees.
Uber initially did not provide any information on whether and to what extent this would lead to higher costs.
The share reacted with slight price losses.
The question of what status drivers have under labor law and what services they receive from Uber is elementary for the business model of the US group.
Uber traditionally classifies drivers as independent contractors, which saves money on employer obligations such as minimum wages, paid overtime or sick leave.
However, this practice also gives drivers a lot of flexibility in terms of time and the opportunity to work for Uber competitors such as Lyft at the same time.
The London Supreme Court ruled in February that Uber must treat drivers in the UK as employees.
However, the company made it clear that this classification does not mean employee status in the country.
While drivers are entitled to a minimum wage, paid vacation days and pension subsidies, they do not have full employee rights, such as parental leave or severance payments.
Uber has also had legal disputes over the labor law treatment of its drivers in its home country and other countries.
In Germany, the taxi industry has long resisted any further opening of the taxi service market, from which rivals such as Uber could benefit
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dpa / mic