Uber and Deliveroo might have to radically alter the way they pay workers following a government report
Uber and Deliveroo can radically change the way they do business in the UK, after a report commissioned by the government demanded that they guarantee the minimum wage sometimes.
The Taylor examination was ordered by Prime Minister Theresa May last year, in part, to examine how companies “economy concert” as Deliveroo and Uber treat their workers. Other employment-related issues, such as midnight contracts, are also discussed.
The term “concert economy” refers to the increase in the number of companies that rely on more informal workers than full-time workers, often working with smartphone applications.
The report was completed on Tuesday, but key details such as the recommendation on the “per-unit rate” minimum wage leaked to the press.
According to the Financial Times, this means that concert economy companies must prove that they can pay much more than the minimum wage during periods of high demand. Confusingly, this also means that they should not guarantee the minimum wage if workers connect in times of low demand – but they have to warn workers about it in advance.
It does not guarantee that the minimum wage is likely to disappoint drivers Uber Deliveroo and runners who campaigned for a general minimum wage.
Some of the significant changes expected in the report:
Potentially, this means the right to pay and sick pay
Uber and Deliveroo rely on cheap labor to work
If the report’s recommendations become law, it will change the way Uber, Deliveroo and any business rely on casual workers. And this could mean that their prices go up.
For Uber Deliveroo you either deliver food or a taxi at a lower cost and in a short period of time, you will need a lot of potential delivery drivers or taxi drivers.
To this end, the two companies employ thousands of riders and cyclists who are available in case someone orders them. Deliveroo said he had about 15 000 drivers in the UK. Uber does not give figures, but according to The Guardian, it was 25 000 drivers in the UK last year.
These workers do not work all the time, alternating the application every time they can do the work.
All this reduces the costs of Uber and Deliveroo, who classify these self-employed workers. Businesses do not have to pay benefits such as holidays or with parental permission. And that is not necessary to guarantee national salary. This facilitates the offer of a cheap service.
But according to the Frank Field PM work, the series of reports on the concert economy has promoted the Taylor report, this created a subset of people who rely exclusively on Deliveroo, Uber and other economic concert companies for their income. And they struggle to survive.
He told Business Insider in an interview before Taylor’s study: “For people who have other jobs, like Sainsbury’s delivery, doing a few hours here and there [for a business concert economy] is a great way to add Additional income and overtime.
“It’s a different story for people with a single company delivery are their only source of income and they are bound to work for themselves. They feel intimidated.”
Campo said he was pleased with the government’s progress on workers’ rights, especially with Taylor’s recommendation regarding worker status.
None of this is enshrined in the law, but will add political pressure on the economy concert companies to change the way they pay workers. Deliveroo contract has already changed and suggested that it will provide more benefits to passengers due to political pressure. Uber has also begun offering drivers financial advice and other benefits.