Uber has confirmed it will pay its drivers a guaranteed minimum wage, offer holiday pay and provide pensions following a court ruling last month.
GMB, the union for Uber drivers, says the company has finally done the right thing “after losing four court battles”.
Mick Rix, GMB national officer, said: “Uber had to be dragged kicking and screaming to do the right thing, but finally they’ve agreed to follow the ruling of the courts and treat their drivers as workers.
“It’s a shame it took GMB winning four court battles to make them see sense, but we got there in the end and ultimately that’s a big win for our members.
“GMB has consistently said we are willing to speak face to face to Uber about its treatment of drivers - our door remains open.
“Other gig economy companies should take note - this is the end of the road for bogus self employment.”
Uber employs 70,000 drivers in the UK. Each will be entitled to earn at least the National Living Wage, which rises to £8.91 per hour next month.
The company said that its new pay structure will form an earning floor, not a ceiling, and will come on top of free insurance to cover sickness, injury and maternity and paternity payments which have been in place for all drivers since 2018.
Drivers can expect to earn at least the National Living Wage for over-25s, irrespective of age, after accepting a trip request and after expenses.
All drivers will be entitled to paid holiday based on 12.07% of their earnings, which will be paid on a fortnightly basis.
Drivers will also be enrolled into a pension plan automatically, with contributions from Uber.
The company stated that all drivers will retain the freedom to choose if, when and where they drive too.
The changes do not apply to drivers who work for Uber Eats, Uber’s food delivery business.