Uber drivers to get sick and maternity pay in fight to win back London licence

Uber drivers are to be given benefits such as sickness and maternity pay for the first time as the company steps up its bid to win back its London licence.

The “safety net” will come in the form of free insurance cover for what Uber called “life’s up and downs”.

The policy will be funded from the commission drivers pay the ride-sharing app out of every fare.

It will compensate drivers and couriers who cannot work because of sickness, injury, caring for a new baby or jury service. It will also pay out if a driver has an accident while at work and needs medical treatment or a spell in hospital.

The insurance will come into effect on June 1 for more than 150,000 independent Uber “partners” across Europe, including 70,000 in Britain.

It follows widespread criticism of “gig economy” businesses which rely on self-employed workers who do not enjoy the range of legal protections extended to employees. The cover is being provided by French insurance giant AXA under a “multi-million deal” agreed with Uber.

It provides drivers with sick pay of £75 a day up to a maximum of £1,125 if they are unable to work for more than seven days in a row.

If a driver cannot work because of an injury sustained while on a job the insurance will pay drivers £75 a day up to a maximum of £2,250 after 30 days. For couriers the pay is £30 a day up to a maximum of £900.

There will be a one-off maternity or paternity payment of £1,000.

The policy will reimburse up to £7,500 of medical expenses “not covered by normal public healthcare”, or private treatments that are needed instantly such as physiotherapy.

To be eligible for the cover — known as Partner Protection — a driver must have completed 150 trips in the previous eight weeks; while an Uber Eats courier must have completed at least 30 deliveries in the previous eight weeks.

Uber chief executive Dara Khosrowshahi unveiled the scheme today in Paris, where he was speaking at President Emmanuel Macron’s Tech for Good summit.

He said: “Uber wouldn’t be what it is without drivers and couriers — they are at the heart of the Uber experience. We’re committed to being better a partner, and that starts by being a better listener.

“That’s why I’m thrilled to provide this groundbreaking protection alongside a trusted insurer like AXA, giving our drivers and couriers the peace of mind they tell us they want while preserving the flexibility they value. We’ll continue to ensure that the voices of the drivers and couriers are heard as we take Uber forward together.”

Uber is currently preparing a legal appeal against the shock decision by Transport for London last September not to renew its licence in the capital. It has been allowed to continue to operate as normal pending the appeal, which is expected in the summer.

In March Mayor Sadiq Khan praised the “humility” and “more sensible approach” of Mr Khosrowshahi, who replaced Travis Kalanick after a string of scandals.

Today a spokesman for the Mayor said: “With the expansion of the gig economy, too many Londoners still suffer from low pay and a lack of security at work.

“Sadiq therefore welcomes any commitment to give drivers and couriers in London more security through access to sick pay, and maternity and paternity pay, and the Mayor hopes it becomes the norm across the gig economy.”