Does Uber's algorithm pay minimum wage?

Posted Tuesday 6th December 2022

On 31 October 2022, several drivers filed a claim against Uber.  Following the Supreme Court decision last March ruling that Uber drivers were legally classed as “workers” and therefore entitled to the minimum wage, most driver contracts were amended to account for this change in status. The new claim launched by drivers last month alleges that Uber is in breach of the March 2021 decision and has not been paying them minimum wage.

The dispute centres around the algorithm based on which Uber calculates its drivers’ wages. The formula takes into account the time drivers spend en route to collect passengers and hours spent transporting them. However, according to the drivers, it should also consider when they are logged in and waiting for trips, return trips and other hours when drivers are working as per their amended contracts. Uber has not yet shared or produced records detailing how the algorithm works.  

Therefore, the drivers are requesting compensation for the lack of proper reimbursement for hours worked before and after their contracts were updated post-March 2021. In addition, they are requesting the court award them damages for breach of contract and that the unpaid wages are treated as “debt”. In the claim form filed, the total damages remain to be fully quantified. However, they are currently estimated to exceed £100,000. We will provide an update on this case as the matter progresses.

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This article is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.

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