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Uber drivers to be considered workers and not freelance contractors: UK Supreme Court 

  • IASbaba
  • February 23, 2021
  • 0
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Uber drivers to be considered workers and not freelance contractors: UK Supreme Court 

Part of: GS Prelims and GS – II – Internationa relations; & GS- III – Economy

In news

  • The UK Supreme Court ruled that Uber drivers were to be considered workers and not freelance contractors. 
  • This order shall make them eligible for all employment related benefits such as minimum wage, annual leaves, and insurance.

Key takeaways 

  • With this ruling, Uber and other service providing platforms could also potentially face legal and regulatory challenges in India. 
  • Besides, Indian budget 2021-22 has mandated that the law on minimum wages would now apply to workers of all categories including those associated with platforms such as Uber.
  • Such workers would now be covered by the Employees State Insurance Corporation (ESIC). 

Important value additions 

  • In November 2020, the government had come out with specific norms for apps such as Uber and Ola.
  • Under them, these apps could charge a maximum of 20% commission per ride from driver partners, while also capping the total number of working hours per day at 12.
  • Maximum fare is also provided that these platforms could charge customers even during high demand peak hours. 
  • They would have to provide drivers with insurance. 

Do you know? 

  • A gig economy is a free market system in which temporary positions are common and organizations hire independent workers for short-term commitments. 

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