Uber Reclassifies UK Drivers As ‘Workers’ Entitled To Better Pay, Benefits

Uber Technologies, Inc. is reclassifying 70,000 drivers in the UK as "workers" and entitle them to a minimum wage, paid vacation and access to a pension plan.

It's the first time Uber has agreed to classify its drivers and is the result of a landmark British Supreme Court ruling in February that determined Uber drivers deserved more protection.

Uber said the minimum wage would be based on time engaged after a trip is accepted and after expenses - a condition that could be subject to further evaluation, CNN reported.

The court decided that drivers are considered on duty from the time they turn on Uber's app, rather than when transporting passengers - as the company argued.

Uber was firm in the way it treated its workers as independent contractors while offering new benefits as a form of middle ground.

Uber's business model and other "gig economy" companies depend on keeping labor costs down by employing workers as independent contractors, according to The New York Times.

The court ruling was a defeat for Uber in the UK, where the company has faced heavy pressure from transport regulators.

The ruling was welcomed by labor activists who have criticized how companies like Uber, Grubhub, DoorDash and Lyft treat drivers and delivery people.