Following a Supreme Court defeat last month, the Silicon Valley-based company reclassified its more than 70,000 drivers in Britain as workers, meaning they are guaranteed entitlements such as holiday pay.
On the minimum wage, which stands at 8.72 pounds ($12.13) per hour for those aged 25 and over, Uber said it would apply “after accepting a trip request and after expenses” and that on average drivers earn an hourly 17 pounds in London.
Drivers will not receive it during the time they spend waiting for a passenger, which can account for as much as a third of the time drivers are behind the wheel with the app turned on, according to several U.S. studies.
James Farrar and Yaseen Aslam, the two lead drivers in a 2016 employment tribunal case that Uber unsuccessfully contested all the way to Britain’s top court, criticised the move.
“Uber drivers will be still short-changed to the tune of 40-50%,” they said in a statement released by the App Drivers & Couriers Union they lead.
“Also, it is not acceptable for Uber to unilaterally decide the driver expense base in calculating minimum wage.”