Uber drivers will receive a number of new benefits, including a guaranteed minimum wage and paid vacation.
The company said its 70,000 drivers are treated as workers and therefore have a “lower limit of income, not an upper limit of income”.
The new benefits – which will go into effect Wednesday – were introduced after a long-running court battle that ended in February with the Supreme Court ruling that drivers were workers. Uber had previously claimed the drivers were contractors.
Jamie Heywood, Uber General Manager Northern and Eastern Europe, said: “This is an important day for drivers in the UK. Uber drivers receive an income guarantee, vacation pay, and pension, and retain the flexibility they currently appreciate.
“Uber is only part of a larger private rental industry. We hope all other operators work with us to improve the quality of work for these important workers who are an integral part of our everyday lives.”
As part of the benefits, drivers now receive vacation time based on 12.07% of their income. You will receive the sum every two weeks.
Workers are also entitled to a pension system into which they are automatically included. Both Uber and the drivers contribute to retirement.
Uber added, “This means drivers can earn more confidently and plan their futures while maintaining the flexibility that is essential to the home rental industry.
“Uber has consulted thousands of drivers over the past few weeks who said they wanted these extra benefits without sacrificing flexibility.”
Uber had a long-standing legal battle with the GMB union over the rights of their drivers.
GMB said Uber “finally did the right thing after losing four court battles”.
Mick Rix, GMB National Officer, said, “It’s a shame GMB won four court battles to make sense of it, but in the end we did it and, ultimately, it’s a huge win for our members.”
“GMB has consistently stated that we are ready to speak to Uber personally about driver treatment – our door remains open.
“Other gig economy companies should take note of this – this is the end of the road for fake self-employment.”