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
- 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.
- 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.