Ride share service Uber is not just under fire in Canada, it’s also causing controversy in the UK – with the company losing a recent battle for a legal review of Transport for London’s requirement that drivers must have commercial insurance policies (see
article).
Now, the company has fallen under the spotlight again – this time over its minimum wage compliance.
That’s because GMB, the union for professional drivers, has called on HMRC, the UK’s tax and revenue service, to exercise what it deems to be “legal responsibility” in enforcing minimum wage laws and the collection of taxes on the company.
Its calls come after a tribunal judgment on October 28 which outlined that Uber drivers should be paid for every hour on duty and working time be defined as “
any period during which he is working, at his employer’s disposal and carrying out his activity or duties.”
According to GMB, working time should start as soon as the driver leaves home and continue until he/she returns home. The union also wants Uber drivers to receive holiday pay, a guaranteed minimum wage, break entitlement and for tax collection to be enforced.
“We have formally requested today that HMRC investigate the dark maze of tax avoidance at Uber,” said Maria Ludkin, GMB legal director.
“The recent judgement shows that Uber drivers are workers, employed by Uber. The company can no longer try to pass the buck of tax responsibility to drivers by pretending they are self-employed.”
She called on HMRC to enforce wage laws and national insurance contributions, as well as PAYE tax.
“As GMB demonstrated in the Tribunal, one drivers average pay for driving hours was £5.68 and zero for time waiting for work,” she explained.
“The
Daily Telegraph last month reported that Uber UK drivers generated £115m of income in the UK last year. HMRC has a legal duty to ensure that the 30,000 drivers are paid the living wage/national minimum wage for all hours Uber drivers are clocked on.”
Related stories:
Uber loses legal fight over Transport for London insurance rules
London mayor responds to Uber on insurance feud
