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.
