Uber To Reclassify U.K Private-hire Drivers As 'workers'

uber march17 lt

Uber Technologies will reclassify and treat its private-hire drivers using its Mobility platform in the U.K as "workers" effective on Wednesday, after losing in a long-running legal battle in the U.K.

The U.K. Supreme Court last month ruled that Uber drivers should be classified as "workers" and not independent contractors. The ruling paves the way for Uber drivers to receive benefits such as paid holidays and the minimum wage, despite the worker not being classified as an employee under UK employment law.

However, the ride-hailing giant disclosed in a regulatory filing with the U.S. Securities and Exchange Commission on Tuesday that the U.K.-based drivers remain as self-employed for tax purposes, but they are entitled to the minimum wage, holiday pay, and, if eligible, a pension. The company reportedly has more than 70,000 drivers in the U.K.

Uber said that it will pay the UK drivers 12.07 percent of their earnings as vacation pay out every two weeks and enroll eligible drivers in a pension plan to which Uber will contribute. The contributions will represent about 3 percent of a driver's earnings.

Uber noted that its UK Mobility business represented about 6.4 percent of global Mobility Gross Bookings in the fourth-quarter 2020.

The company also said it did not change its expectations for adjusted EBITDA for the first-quarter or 2021.

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