How much compensation are Uber drivers entitled to?

4 August 2020
Author: Drivers Claim Team

You may have seen in the news recently that Uber drivers could receive compensation relating to holiday pay and receiving less than the National Minimum Wage. But how much could you be entitled to? Here, Nigel Mackay, a partner in the employment team, explains.

Uber drivers are in the final stages of a legal battle with the San Francisco-based transport company over whether they should receive workers’ rights.

Currently, we are waiting for a decision by the Supreme Court on whether drivers should be classed as workers and therefore receive workers’ rights such as holiday pay and being paid at least the National Minimum Wage.

If the drivers succeed at the Supreme Court, the case will return to the Employment Tribunal which will decide how much compensation drivers are entitled to.

Leigh Day is bringing the claim on behalf of drivers and we believe each claimant could be entitled to an average of £12,000 in compensation.

This is based on research we have carried out into the average length of service and normal working hours of Uber drivers in the UK, as well as expenses Uber drivers normally have to incur.

Depending on individual circumstances, your claim could date back to when you first became an Uber driver, which means the amount each driver receives would be different.

The Tribunal will need to work out how much paid holiday you should have received while working for Uber and how much compensation Uber needs to pay you for this.

It will also need to work out if you were paid at least the National Minimum Wage during the time that you worked for Uber. This will depend on how much you earned on a weekly basis and how much you spent on expenses such as petrol and vehicle costs.

We will calculate your compensation using documents such as your weekly summaries, payment statements, tax returns/accounts, bank statements or receipts.

We are acting for Uber drivers on a ‘no win, no fee basis, which means that you don’t pay anything unless you win.

If you do win, Leigh Day will deduct 25 percent plus VAT (in other words a total of 30 percent based on the current VAT rate), from your compensation to cover legal fees.

This means, if you were to be awarded £12,000, the final amount you would be paid would be £8,400, after we have deducted £3,000 in legal fees plus £600 VAT.

If you have driven for Uber in England, Wales or Scotland within the last 10 weeks, you are eligible to apply to join the claim Click here to apply. 

Last updated 29 January 2021 by the Drivers Claim Team

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