Uber has confirmed it will automatically enrol eligible drivers into a qualifying pension scheme following its Supreme Court defeat last month.
The ride-sharing app provider said yesterday (16 March) that its drivers now would be “treated as workers” following the landmark ruling.
The definition of drivers as workers brings with it multiple employment rights including pension entitlements, holiday allowances, and minimum and living wage entitlements.
The company said the changes would be effective as of today and that employees would be eligible for contributions at the minimum level of 3% from the employer.
Approximately 99% of UK drivers earn more than the National Living Wage, Uber said, with rough earnings averaging at £17 per hour in London and £14 per hour in the rest of the UK, after expenses.
Drivers will be automatically enrolled provided that they are between the ages of 22 and state pension age and have annual earnings of between £10,000 and £50,000. Drivers who earn more than £6,240 are also entitled to request to join the scheme.
This means, on average, London-based drivers will need to complete around 588 hours of work, while those outside of London will need to rack up 714 hours, in order to be automatically enrolled. This equates to, per year, around 15 weeks and 18 weeks respectively on a full-time equivalent basis.
Uber regional general manager for Northern and Eastern Europe Jamie Heywood commented: “This is an important day for drivers in the UK. Uber drivers will receive an earnings guarantee, holiday pay and a pension, and will retain the flexibility they currently value.
“Uber is just one part of a larger private-hire industry, so we hope that all other operators will join us in improving the quality of work for these important workers who are an essential part of our everyday lives.”
The unanimous Supreme Court ruling last month marked the end of a four-year dispute that saw the company criticised by judges. But fluctuations in payment and working hours could create an administrative nightmare for the company, Broadstone technical director David Brooks said at the time of the judgment.