Uber to offer drivers sick pay after row over workers' rights

Uber car
Uber is appealing a ruling that its drivers are entitled to employment benefits Credit: Rex

Uber has agreed to grant its drivers sick pay and injury cover as it faces intense scrutiny over employment rights under the gig economy.

The ride-hailing app announced today that its drivers can sign up to a security scheme that will cover them in the event that they cannot work.

In exchange for £2 a week, drivers who join the scheme will be covered if they are unable to work because of unforeseen circumstances such as illness, injury or jury duty, Uber said.

It comes as Uber is appealing an employment tribunal's decision that its drivers are workers, rather than self-employed, and therefore entitled to rights such as sick pay. It is one of the first companies that operates under the gig economy to offer such assurances.

MPs recently escalated the row over treatment of gig economy workers and slammed Uber’s contracts as “gibberish” and “almost unintelligible”.

Companies including Uber give the impression of offering their drivers flexibility, but this in fact only benefits the firms, said Frank Field, chair of the House of Commons Work and Pensions Committee, which is conducting an inquiry into the gig economy.

Uber maintains that its drivers are are self-employed, have the freedom to work when they choose and earn an average of £15 per hour not including vehicle or fuel costs. But some drivers have complained they earn less than minimum wage on average and miss out when they can't work due to unexpected circumstances.

“Drivers who make money through Uber tell us they love the freedom of being their own boss and choosing if, when and where they drive,” said Jo Bertram, regional general manager of Uber in the UK. “But drivers have also told us they want more security if something unexpected happens.”

Uber has partnered with the Association of Independent Professionals and the Self-Employed to offer the benefits to drivers. As well as sickness and injury cover of up to £2,000 it will also offer jury service cover of the same amount and occupational accident cover of £300 per week for up to a year.

Uber said it is subsidising the cost of joining the Association and accessing the insurances so that drivers pay £2 pay a week for benefits worth £8.

“In addition to gaining valuable illness and injury cover, drivers will benefit from being part of the UK’s largest voice dedicated to supporting the self-employed community,” said Chris Bryce, chief executive of IPSE.

Theresa May, the Prime Minister, has asked Matthew Taylor to conduct a review into the gig economy and self-employment which is due to be published after the General Election in mid-June.

The Royal Society for the Encouragement of Arts, Manufactures and Commerce (RSA), led by Mr Taylor, published a report on Thursday warning the Government against using draconian measures that stifled innovation at companies such as Uber and Deliveroo.

The RSA said "holding platforms back will not serve anyone’s best interests" with workers valuing "convenience and flexibility" in a world where the traditional 9-5 job "is gradually disappearing".

It urged policymakers to set out clear definitions of self-employment and adopt an approach of "shared regulation". handing more power to workers with the aim of fostering an environment "that strikes the right balance between autonomy and security".

"[The government] should continue to support platforms in the UK, but can no longer remain agnostic about the different business models used by platforms," it said.

Brhmie Balaram, senior researcher at RSA and lead author of the report, added: "To truly transform gig workers’ experiences of the labour market, we need an approach that goes way beyond legal housekeeping.

"That’s why we are urging government and the gig economy industry to collaborate and create a good work charter which sets out how gig workers can have fulfilling working lives."

 

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