Uber to offer drivers medical cover and maternity pay as it gears up for court hearing on its future in London
Uber is introducing a number of protections for its European drivers including sickness, and maternity and paternity payments, as it gears up for a crunch decision on its future in London.
The company lost its licence to operate in the capital last September with Transport for London (TfL) ruling it not fit and proper to have a licence.
This new change, which will be EU-wide, means a range of insurance coverage will be provided for 70,000 drivers and couriers who use Uber in the UK from 1 June.
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Sickness, injury and maternity and paternity payments will be provided in partnership with Axa “at no cost to drivers and delivery partners”. These include a £1,000 lump sump maternity and paternity payment and up to £7,500 reimbursement on medical cover for UK drivers.
Dara Khosrowshahi, Uber’s chief executive, said today at President Macron’s Tech for Good summit:
We’re committed to being better a partner, and that starts by being a better listener. That’s why I’m thrilled to provide this groundbreaking protection alongside a trusted insurer like AXA, giving our drivers and couriers the peace of mind they tell us they want while preserving the flexibility they value.
We’ll continue to ensure that the voices of the drivers and couriers are heard as we take Uber forward together.
The new development covers UK drivers for major costs or lost income resulting from accidents or injuries that occur on a trip, as well as protection for major life events that happen while not on the job, such a severe sickness and jury duty.
To be eligible for the cover, drivers need to have completed 150 trips in the previous eight weeks, while an Uber Eats courier must have completed at least 30 deliveries in the previous eight weeks to qualify.
The ride-hailing app’s chief executive has been looking to shake-up the company’s culture with a number of changes from 24/7 telephone support for passengers and drivers, to proactively reporting serious incidents to the Metropolitan Police, and driver hours limits.
Next month, Uber faces off against TfL in court, with an appeal hearing getting underway at the end of June to assess whether the ride-hailing app now is “fit and proper” to have a licence.
The company will be hoping the raft of changes it has made in the wake of the TfL decision will stand it in good stead to get the green light to continue operations in the capital.
A spokesperson for the mayor said:
With the expansion of the gig economy, too many Londoners still suffer from low pay, and a lack of security at work. Sadiq therefore welcomes any commitment to give drivers and couriers in London more security through access to sick pay, and maternity and paternity pay, and the mayor hopes it becomes the norm across the gig economy.
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