Uber drivers challenge compensation offer

Uber are being challenged over compensation payments for historic work, as the taxi app faces a new legal battle over how it pays drivers.

 

In a court filing in the United States this month, three law firms are representing a "large cohorts of drivers" who are opposing pay-outs offered by Uber for holiday pay and minimum wage thresholds. In February drivers won a legal victory against Uber when the UK's Supreme Court declared that they were workers rather than self-employed contractors - meaning they were entitled to minimum wage and holiday pay. Following the decision, Uber offered drivers payments of thousands of pounds for missed holiday pay and minimum wages in the previous two years. They set aside $600m (£448m) to cover the costs. 

 

The company says it has now made payments to all of those who had accepted offers, but that a large number had challenged the payments. Drivers are claiming that they are owed more than Uber has offered. Lawyers representing around 1,000 drivers have suggested that drivers could be entitled to up to £15,000 each, compared to payments of around £4,000 that have been offered by the company.  They want Uber to pay compensation from upto two years before the Supreme Court judgement, and to recognise the time drivers spent on the app when not carrying out a journey. 

 

Currently, Uber counts the minutes that drivers spend completing a journey as, "time working" in order to calculate minimum wage payments and holiday accrual. Claimants say that instead, the company should count the total time spent logged into its app.

 

The dispute is set to be heard by an Employment Tribunal in June. "While the ultimate resolution of these matters is uncertain, we have recorded an accrual for these matters," Uber said in the filing.  The company also faces legal action in the US from the Department of Justice over claims it overcharged disabled passengers, an action which Uber called "surprising and disappointing".

 

The news comes as Uber is struggling to address a damaging shortfall of 20,000 drivers, which has left passengers complaining about surging fares and higher wait times. The firm has raised prices in London for the first time since 2017 in an attempt to attract more cars to the app. 

 

The driver shortage came as demand plunged in lockdowns and many left the industry to find other jobs. According to estimates from the Licensed Private Hire Car Association, as restrictions were lifted fewer than half of the previous 300,000 mini-cab drivers have returned to work, leaving a 160,000 shortfall.