Uber confirms UK workers will receive pensions following court ruling

Uber has confirmed that it will give its workers pensions following a recent Supreme Court decision that ruled its employees were not self-employed.

As reported by our sister title, Pensions Age, Uber now has to class its employees as workers, and therefore, it has revealed it will pay its approximately 70,000 drivers at least the National Living Wage (£8.72 an hour).

The ruling also brings drivers within the scope of auto-enrolment, provided they work enough hours to meet the minimum earnings trigger of £10,000 a year.

Once the National Living Wage increases to £8.91 an hour in April, Uber drivers will need to work at least 22 hours a week to qualify for auto-enrolment.

Industry experts have said that the ruling and subsequent pension enrolment could have a wider effect on the gig economy, possibly opening the door to other gig workers becoming eligible for auto-enrolment.

“The news that Uber will pay minimum wages and make pension contributions will generate a lot of interest not just for its drivers but potentially send shock waves through the wider gig economy,” commented Aegon head of pensions, Kate Smith.

“The flexible working arrangements offered by companies like Uber have created new types of work but often with very few benefits.

“For Uber drivers the addition of benefits like a pension will provide a degree of longer-term financial security and help to provide a base level of income in retirement for those who stay with the company longer term."

However, the ruling does not apply to Uber Eats drivers and there are some concerns that Uber will not count the hours that drivers are waiting for customers as payable time.
“It looks as though there will be further wrangling over what Uber deem the drivers’ working hours and this will have important ramifications for whether people meet the minimum income threshold to be enrolled in a pension," Smith concluded.

    Share Story:

Recent Stories

Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?

In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.

Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows