Private hire operators must ‘consider’ whether changes are needed following Uber judgment says TfL
London’s transport regulators Transport for London (TfL) has urged all private hire operators to consider whether changes to their business are required to ensure they are compliant, following the landmark workers’ rights Supreme Court judgment.
Last month, the Supreme Court judgment handed Uber drivers basic workers’ rights, which included minimum wage, holiday pay and pensions. Over 70,000 UK Uber drivers can now access these benefits.
Today, TfL released a notice to the taxi and private hire industry stating that whilst the capital’s regulators will not regulate the ‘terms and conditions that operators should provide for drivers’, operators should ‘consider whether any changes to their business are required to ensure they are compliant with the Supreme Court’s judgment’.
Private hire operators were also reminded that they are required to notify TfL of any ‘material changes’ to their operating models that may affect their compliance.
According to the regulators, a material change is something which has more than a minor impact on the operating model. Some examples provided by TfL include, how passengers engage with operators, how bookings are accepted, what services are delivered and how they're delivered.
On Wednesday, ride-hailing firm Uber announced that thousands of drivers in the UK will be treated as workers, earning at least the National Living Wage when driving on the platform.
Private hire drivers working on the platform will also be paid for holiday time and be automatically enrolled into a pension plan if they are eligible.
The news of Uber’s workers’ benefits was originally welcomed by the App Drivers & Couriers Union (ADCU) as ‘progress’, but they raised big questions as to why drivers were only offered pay and benefits for the time they had an accepted job.
Graham Robinson, TfL General Manager for Taxi and Private Hire, said in today’s notice: “On 19 February 2021, the Supreme Court gave judgment in Uber BV and others v Aslam and others [2021] UKSC 5. The judgment upheld an Employment Tribunal ruling which classed drivers undertaking bookings for private hire operator Uber London Limited as ‘workers’.
“As the licensing authority and regulator of taxi and private hire services, Transport for London (TfL) does not regulate the terms and conditions that operators should provide for drivers. However, all private hire operators will need to consider whether any changes to their business are required to ensure they are compliant with the Supreme Court’s judgment.
“Private hire operators are reminded that they are required to notify TfL of any material changes to their operating models that may affect their compliance with the statutory and regulatory framework governing private hire services in London.
“The Supreme Court judgment includes commentary regarding the contractual relationship between operators and drivers as set out in their terms and conditions to which private hire operators should give due consideration.
“You can find more information on this requirement, and how to notify TfL of material changes to operating models on our dedicated webpage.”
