On Wednesday 17th March, Uber announced it would be paying it’s UK workers the minimum wage, as well as holiday pay and pension contributions. This is following a lengthy court battle.
What was found in the case?
In February, the Supreme Court, which is the highest court a case can go to in the UK, unanimously upheld an Employment Tribunal decision that Uber drivers are workers.
This decision was based on the degree of subordination and control that the drivers were subjected to.
It was found that working time for the drivers includes any time when they are logged in to the Uber app within the territory they are licensed to operate, and the driver is ready and willing to accept trips.
What does this mean for my organisation?
Where an individual provides their services to one principal, and the principal is not a client or customer, there is a significant risk the individual will be a worker. Whilst workers do not have the full rights of an employee, they are entitled to National Minimum Wage and statutory holiday pay. They also have discrimination rights, and the Working Time Regulations will also apply.
This is part of a general trend where the courts and HMRC are cracking down on self-employed arrangements. This includes the changes to IR35 in the private sector coming in April 2021.
What should I do?
Now is a really good time to be reviewing any arrangements you have with individuals who provide their services on a self-employed basis as an individual or through a personal service company.
Need help navigating this?
We can help! Please get in touch, contact Lisa Lenton on 07469 153048 or lisa.lenton@bmcprecpt.com
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