Uber drivers are workers not self-employed

Uber drivers must be treated as workers rather than self-employed, the UK’s Supreme Court has ruled.

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With this ruling, Uber and other service providing platforms could also potentially face legal and regulatory challenges in India, as big tech companies from across the globe are under government scrutiny for the differential terms of service and engagement in geographies such as the EU and in locations such as India.

The increased focus on big tech aside, the central government has already put in place some legal protection for gig economy workers.

The budget for the 2021-22 has already mandated that the law on minimum wages would now apply to workers of all categories including those associated with platforms such as Uber.

Such workers would now be covered by the Employees State Insurance Corporation (ESIC), which mandates employers depositing a certain amount of money with the state insurer, the rest of which is paid by the government.

November last year, the central government had come out with specific norms for ride hailing apps such as Uber and Ola.

Under the new rules, ride hailing apps could charge a maximum of 20 per cent commission per ride from driver partners, while also capping the total number of working hours per day at 12.

The new regulations also provided for the maximum fare that these platforms could charge customers even during high demand peak hours, and that they would have to provide drivers with insurance.