Uber drivers are workers not self-employed, Supreme Court rules( Part2)

What did Uber argue?

Uber has long argued that it is a booking agent, which hires self-employed contractors that provide transport.

By not being classified as a transport provider, Uber is not currently paying 20% VAT on fares.

The Supreme Court ruled that Uber has to consider its drivers "workers" from the time they log on to the app, until they log off.

This is a key point because Uber drivers typically spend time waiting for people to book rides on the app.

Previously, the firm had said that if drivers were found to be workers, then it would only count the time during journeys when a passenger is in the car.

"This is a win-win-win for drivers, passengers and cities. It means Uber now has the correct economic incentives not to oversupply the market with too many vehicles and too many drivers," said James Farrar, ADCU's general secretary.

"The upshot of that oversupply has been poverty, pollution and congestion."

Why are some drivers unhappy with Uber?

Mr Aslam, who claims Uber's practices forced him to leave the trade as he couldn't make ends meet, is considering becoming a driver for the app again. But he is upset that the ruling took so long.

"It took us six years to establish what we should have got in 2015. Someone somewhere, in the government or the regulator, massively let down these workers, many of whom are in a precarious position," he said.

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Mr Farrar points out that with fares down 80% due to the pandemic, many drivers have been struggling financially and feel trapped in Uber's system.

"We're seeing many of our members earning £30 gross a day right now," he said, explaining that the self-employment grants issued by the government only cover 80% of a driver's profits, which isn't even enough to pay for their costs.

"If we had these rights today, those drivers could at least earn a minimum wage to live on."

Will we pay more for Uber rides?

That remains to be seen, but it could potentially happen.

When Uber listed its shares in the United States in 2019, its filing with the US Securities and Exchange Commission (SEC) included a section on risks to its business.

The company said in this section that if it had to classify drivers as workers, it would "incur significant additional expenses" in compensating the drivers for things such as the minimum wage and overtime.

"Further, any such reclassification would require us to fundamentally change our business model, and consequently have an adverse effect on our business and financial condition," it added.

Source @ Mary- Ann Russon (Uber drivers are workers not self-employed, Supreme Court rules - BBC News