Whilst Uber Drivers are and continue to remain self-employed for tax purposes, worker employment status gives drivers two basis employment rights:
Right to take holiday leave and be paid for it
Right not to receive less than minimum wage after expenses
Holiday Pay Rights
A driver with worker employment status working 40 hours per week would be entitled to receive 5.6 weeks holiday leave per year and be paid for it.
Part time driver would be entitled to holiday leave on a pro rata basis.
Holiday pay is generally calculated at 12.07% of annual income.
As an example, an Uber driver working an average of 40 hours per week, would at least be entitled to approximately £2,100.00 compensation per annum for unpaid holiday leave, assuming the applicable National Minimum Wage is £8.72.
Minimum Wage Right
This employment right is not to receive the minimum wage.
The right is to receive not less than the minimum wage after deduction of Uber commissions and vehicle related expenses such as maintenance, insurance, road tax, vehicle depreciation, repairs, fuel, servicing, car leasing fees, MOT inspections and PHV licensing fees.
As an example, an Uber driver working 40 hours per week and earning £0.50 less than the minimum wage after expenses could be entitled to approximately £1,040.00 compensation per annum, assuming the applicable National Minimum Wage is £8.72.