Uber driver protest slows London down

blog-publish-date

24 Nov 2016

blog-read-duration

Uber drivers took to the streets of London yesterday in a protest over the payment of the National Minimum Wage. Unfortunately for them, despite the protest, it looks like they are a long way off benefiting from the minimum wage let alone the 30p rise in the National Living Wage announced by Chancellor Philip Hammond today.

The Employment Tribunal recently decided that Uber drivers were not in business on their own account, and so fell into the category of ‘worker’. They came to this conclusion because, among other things, Uber:
  • interviews and recruits drivers, using an “onboarding” process;
  • fixes the fare and the driver cannot agree a higher sum;
  • imposes numerous conditions on drivers e.g. there is a list of makes and models of cars which Uber will accept; cars cannot be older than 2006; they should preferably be silver or black;
  • subjects drivers to a rating system which amounts to a performance management/disciplinary procedure;
  • accepts the risk of loss which, if the drivers were genuinely in business on their own account, would fall upon them;
  • determines issues about rebates sometimes without involving the driver whose pay is likely to be affected;
  • would have to be the client/customer of the drivers. This was clearly not the case.
Alan Price, CEO at Croner, says: “The Employment Tribunal decision was a seminal case for Uber and other organisations who engage individuals on similar terms. The protest by Uber drivers and the increase in National Living Wage will throw the issue of employment status back into the limelight and we expect a torrent of claims from other industries who operate similar practices.”

Free to Download Employer Resources

  • Pay Awards & Forecast (September 2018)

    FREE DOWNLOAD

    Pay Awards & Forecast (September 2018...

    Read Croner Reward's expert settlement and forecast report for September 2018

    Read more
  • Sample Health & Safety Policy Statement

    FREE DOWNLOAD

    Sample Health & Safety Policy Stateme...

    Here we’ve included a free sample Health & Safety Policy Statement that UK business owners can refer to.

    Read more
  • Pay Awards & Forecast (June 2018)

    FREE DOWNLOAD

    Pay Awards & Forecast (June 2018)

    Read Croner Reward's expert Settlements and Forecasts report for June 2018

    Read more
  • How Much Does Employee Turnover Cost Your Business?

    BLOG

    How Much Does Employee Turnover Cost ...

    A recent Glassdoor survey revealed that almost 35% of hiring professionals expec...

    Read more
  • Staff Turnover: What Do You Need to Know?

    BLOG

    Staff Turnover: What Do You Need to K...

    Having a high worker turnover can have mean two things: A negative impact on you...

    Read more
  • What is Wrongful Dismissal?

    BLOG

    What is Wrongful Dismissal?

    If you breach an employee’s contract, you could be liable for wrongful dismissal...

    Read more
  • bemrose-school-derby

    CASE STUDY

    Bemrose School Derby

    “Having Croner-i saves us a lot of time and money, as we do not have to use cred

    Read more
  • wmtr

    CASE STUDY

    WMTR

    “I’d definitely recommend the Croner OnSite services and I have done already, I

    Read more
  • certikin

    CASE STUDY

    Certikin

    “Our Distribution Manager had a particularly technical query relating to respira

    Read more

Ready to focus on what you do best?

Get your free consultation and speak to an expert today.