Uber to give drivers sickness cover and maternity pay under new insurance

Critics say new insurance policy gives less protection than the company should provide under the law

Uber is currently fighting a legal battle in the UK over its classification of drivers and couriers as independent contractors (Reuters)

Uber will give drivers in Europe protections including sickness and injury payments through new insurance policies after coming under pressure over its approach to employment rights.

The ride-hailing service will also allow drivers a one-off payment if they have a baby, suffer a bereavement or are unable to work due to jury service.

However, critics allege that the offer is not new and leaves drivers with less protection than they are entitled to under the law.

The cover will apply to drivers who have completed 150 trips in the previous eight weeks. Couriers for its Uber Eats food delivery service who have completed at least 30 deliveries in eight weeks will also be eligible.

Since April 2017, Uber drivers - who are classified by the company as independent contractors - have been able to purchase insurance from the company for £2 per week to cover them for lost earnings in the event of illness or injury.

Under the new free scheme, drivers are entitled to a £7,500 medical cover lump sum and £50,000 for a permanent injury related to the job.

The sickness cover offered amounts to up to £75 per day for a maximum of 15 days and then £30 per day for a further 15 days. Drivers who have a child are eligible for a £1,000 payment.

This compares to statutory maternity pay of 90 per cent of earnings before tax for six weeks followed by the lower out of £145.18 or 90 per cent of earnings for a further 33 weeks.

The Independent Workers’ Union of Great Britain (IWGB) said the protections were not enough.

James Farrar who is a co-claimant in an employment rights case against Uber and branch chair of the IWGB said: “It's good to see Uber is reacting to the pressure piled on by the IWGB's campaigns and legal action.

“Sadly, this is once again a case of tinkering around the edges for a quick PR win, rather than dealing with the issue at hand.

“If Uber really cares about the workers on which the business relies, it should stop fighting us in court and give the drivers the rights they are entitled to under the law.”

Uber is currently fighting a legal battle in the UK over its classification of drivers and couriers as “partners” who are independent of the company, rather than workers, who are entitled to rights such as the National Living Wage and holiday pay.

An employment tribunal ruled last year that two drivers - Mr Farrar and co-claimant Yaseen Aslam - were workers. The employment appeal tribunal later upheld that ruling, prompting a further appeal by Uber.

Mike Rix of the GMB union said the new protections offered by Uber represented a “hard-won victory”.

“At long last it seems Uber are starting to listen to GMB members complaints regards the company’s treatment of drivers and denying them their rights,” he said.

“This is a major step in the right direction, but our successful court victories, winning workers’ rights for Uber drivers, could have all been avoided if they had sat down and talked with GMB from the start.