Arab Press

بالشعب و للشعب
Tuesday, Dec 23, 2025

Uber to pay drivers a minimum wage, holiday pay and pensions

Uber to pay drivers a minimum wage, holiday pay and pensions

Uber says it will give its UK drivers a guaranteed minimum wage, holiday pay and pensions.

The ride-hailing app giant said drivers would earn at least the UK's National Living Wage, paid to the over 25s, of £8.72 an hour.

It comes one month after the US firm lost a legal battle in the UK, begun in 2016, over drivers' status.

Uber told the BBC it did not expect the change in drivers' conditions to mean higher fares.

In a hearing at the UK Supreme Court last month, Uber had argued it was a third-party booking agent, and its drivers were self employed.

But the court ruled its drivers were workers, a category that means they are entitled to minimum legal, holiday and pension rights.

The company is being challenged by its drivers in multiple countries over whether they should be classed as workers or self-employed.

Workers' rights


Uber said the changes to its UK drivers' pay would come in almost instantly, from Wednesday, and form an earnings floor, not an earnings ceiling.

The company, which says it has 70,000 drivers in the UK, said the new rates would 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.

Uber says payment will kick in at:

* At least the minimum wage for over 25s, after accepting a trip request and after expenses.

* All drivers will be paid holiday time based on 12.07% of their earnings, paid out on a fortnightly basis.

* Drivers will automatically be enrolled into a pension plan with contributions from Uber alongside driver contributions, setting drivers up over the long term.

* Continued free insurance in case of sickness or injury as well as parental payments, which have been in place for all drivers since 2018.

* All drivers will retain the freedom to choose if, when and where they drive.

Former Uber drivers James Farrar and Yaseen Aslam spearheaded a battle that began six years ago to grant Uber drivers worker status

Jamie Heywood, regional general manager for Northern Europe at Uber, said: "Uber is just one part of a larger private-hire industry, so we hope that all other operators will join us in improving the quality of work for these important workers who are an essential part of our everyday lives."

Uber pointed out in its statement announcing the changes that a worker is a classification that is unique under UK employment law. Workers are not full-blown employees but are entitled to the minimum wage, holiday pay and a pension.

The company said the recent UK Supreme Court ruling had provided a clearer path forward as to a model that gives drivers the rights of worker status - while continuing to let them work flexibly.

Criticism


In a long-running legal battle, Uber had finally appealed to the court after losing three earlier rounds. The Supreme Court ruled that Uber had to consider its drivers as "workers" from the time they logged onto the app, until they logged off.

This was a key point because Uber drivers typically spend time waiting for people to book rides on the app, for which they don't get paid.

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.

James Farrar and Yaseen Aslam, the two former drivers who sued Uber over worker status, said on Monday they welcomed the changes but the company was still "short changing" drivers.

They said: "We observe that they have arrived to the table with this offer a day late and a dollar short, literally.

"The Supreme Court ruled that drivers are to be recognised as workers with entitlements to the minimum wage and holiday pay to accrue on working time from log-on to log-off, whereas Uber is committing only to these entitlements to accrue from time of trip acceptance to drop off."

Trading impact


They said this meant Uber drivers will be "still short-changed to the tune of 40-50%. Also, it is not acceptable for Uber to unilaterally decide the driver expense base in calculating minimum wage. This must be subject to collective agreement".

Employment experts said the ramifications of the court ruling and Uber's changes would be felt across the gig economy.

Mary Walker, partner and employment lawyer at law firm Gordons, said: "The resulting ability for the Uber drivers to claim back pay for minimum wage and unpaid holiday pay will have many gig businesses reviewing their practices and the associated risks as a matter of urgency."

She believes the additional costs facing the gig economy means "some businesses will simply be unable to continue trading". Other firms will be able to restructure, but perhaps with fewer workers, Ms Walker added.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Saudi Arabia to Introduce Sugar-Content Based Tax on Sweetened Drinks from January 2026
Saudi Hotels Prepare for New Hospitality Roles as Alcohol Curbs Ease
Global Airports Forum Highlights Saudi Arabia’s Emergence as a Leading Aviation Powerhouse
Saudi Arabia Weighs Strategic Choice on Iran Amid Regional Turbulence
Saudi Arabia Condemns Sydney Bondi Beach Shooting and Expresses Solidarity with Australia
Washington Watches Beijing–Riyadh Rapprochement as Strategic Balance Shifts
Saudi Arabia’s Vision 2030 Drives Measurable Lift in Global Reputation and Influence
Alcohol Policies Vary Widely Across Muslim-Majority Countries, With Many Permitting Consumption Under Specific Rules
Saudi Arabia Clarifies No Formal Ban on Photography at Holy Mosques for Hajj 2026
Libya and Saudi Arabia Sign Strategic MoU to Boost Telecommunications Cooperation
Elon Musk’s xAI Announces Landmark 500-Megawatt AI Data Center in Saudi Arabia
Israel Moves to Safeguard Regional Stability as F-35 Sales Debate Intensifies
Cardi B to Make Historic Saudi Arabia Debut at Soundstorm 2025 Festival
U.S. Democratic Lawmakers Raise National Security and Influence Concerns Over Paramount’s Hostile Bid for Warner Bros. Discovery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
Wall Street Analysts Clash With Riyadh Over Saudi Arabia’s Deficit Outlook
Trump and Saudi Crown Prince Cement $1 Trillion-Plus Deals in High-Profile White House Summit
Saudi Arabia Opens Alcohol Sales to Wealthy Non-Muslim Residents Under New Access Rules
U.S.–Saudi Rethink Deepens — Washington Moves Ahead Without Linking Riyadh to Israel Normalisation
Saudi Arabia and Israel Deprioritise Diplomacy: Normalisation No Longer a Middle-East Priority
As Trump Deepens Ties with Saudi Arabia, Push for Israel Normalization Takes a Back Seat
Thai Food Village Debuts at Saudi Feast Food Festival 2025 Under Thai Commerce Minister Suphajee’s Lead
Saudi Arabia Sharpens Its Strategic Vision as Economic Transformation Enters New Phase
Saudi Arabia Projects $44 Billion Budget Shortfall in 2026 as Economy Rebalances
OPEC+ Unveils New Capacity-Based System to Anchor Future Oil Output Levels
Hong Kong Residents Mourn Victims as 1,500 People Relocated After Devastating Tower Fire
Saudi Arabia’s SAMAI Initiative Surpasses One-Million-Citizen Milestone in National AI Upskilling Drive
Saudi Arabia’s Specialty Coffee Market Set to Surge as Demand Soars and New Exhibition Drops in December
Saudi Arabia Moves to Open Two New Alcohol Stores for Foreigners Under Vision 2030 Reform
Saudi Arabia’s AI Ambitions Gain Momentum — but Water, Talent and Infrastructure Pose Major Hurdles
Tensions Surface in Trump-MBS Talks as Saudi Pushes Back on Israel Normalisation
Saudi Arabia Signals Major Maritime Crack-Down on Houthi Routes in Red Sea
Italy and Saudi Arabia Seal Over 20 Strategic Deals at Business Forum in Riyadh
COP30 Ends Without Fossil Fuel Phase-Out as US, Saudi Arabia and Russia Align in Obstruction Role
Saudi-Portuguese Economic Horizons Expand Through Strategic Business Council
DHL Commits $150 Million for Landmark Logistics Hub in Saudi Arabia
Saudi Aramco Weighs Disposals Amid $10 Billion-Plus Asset Sales Discussion
Trump Hosts Saudi Crown Prince for Major Defence and Investment Agreements
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
Riyadh Metro Records Over One Hundred Million Journeys as Saudi Capital Accelerates Transit Era
Trump’s Grand Saudi Welcome Highlights U.S.–Riyadh Pivot as Israel Watches Warily
U.S. Set to Sell F-35 Jets to Saudi Arabia in Major Strategic Shift
Saudi Arabia Doubles Down on U.S. Partnership in Strategic Move
Saudi Arabia Charts Tech and Nuclear Leap Under Crown Prince’s U.S. Visit
Trump Elevates Saudi Arabia to Major Non-NATO Ally Amid Defense Deal
Trump Elevates Saudi Arabia to Major Non-NATO Ally as MBS Visit Yields Deepened Ties
Iran Appeals to Saudi Arabia to Mediate Restart of U.S. Nuclear Talks
Musk, Barra and Ford Join Trump in Lavish White House Dinner for Saudi Crown Prince
Lawmaker Seeks Declassification of ‘Shocking’ 2019 Call Between Trump and Saudi Crown Prince
×