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Uber drivers to get sick pay for first time — but it will cost them £2 a week

Uber drivers are to be given new rights after the tech giant lost a court battle: Reuters
Uber drivers are to be given new rights after the tech giant lost a court battle: Reuters

Thousands of Uber drivers are to be offered sick pay for the first time as part of a new package of benefits from the company.

But drivers will have to pay £2 a week for the basic “safety net”.

The scheme includes payments of up to £2,000 if they are unable to drive for two weeks or more due to illness or injury. It comes amid growing calls for firms such as Uber and Deliveroo in the “gig economy” — where staff are often freelance or on short-term contracts — to provide rights to their workers.

Uber does not class drivers who use its cab-hailing app as employees but as self-employed, meaning they would not be not legally entitled to the minimum wage, sick pay or holiday pay.

But last October an employment tribunal ruled drivers can be classed as employees and are eligible for benefits. Uber is appealing against the verdict. The company, which is valued at $70 billion, said drivers who pay the £2 a week would have access to benefits that have been valued at being worth £8 a week.

It said it was making a “significant contribution” towards paying for the package after striking a deal with the Association of Independent Professionals and the Self-Employed (IPSE), which represents freelancers and contractors.

The package also includes jury service cover of up to £2,000, occupational accident cover of £300 per week for up to a year, and cover of £50,000 for accidental death or permanent total disablement.

More than 40,000 people in the UK earn money through Uber. Unions such as the GMB have been campaigning for the drivers’ rights for several years.

Last October, in a case brought by the GMB, London Central Employment Tribunal ruled that Uber had acted unlawfully by denying two drivers sick pay, a guaranteed minimum wage, holiday pay and breaks. An appeal will be heard in September.

Uber’s UK boss Jo Bertram said drivers wanted to choose when they work, but had also said they wanted more security. She added: “That’s why we’re really pleased to offer drivers this package with IPSE so they have more support in case of illness or injury.

“We want Uber to be the best possible experience so we’ll carry on listening to drivers about further improvements we can make to our app.”

Chris Bryce, chief executive of IPSE, said: “In addition to gaining valuable illness and injury cover, drivers will benefit from being part of the UK’s largest voice dedicated to supporting the self-employed community.”