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BenefitsLatest NewsGig economyPay & benefitsPensions

Uber launches pension scheme for drivers

by Jo Faragher 24 Sep 2021
by Jo Faragher 24 Sep 2021 Pic: Proxima Studio / Shutterstock.com
Pic: Proxima Studio / Shutterstock.com

Uber will pay drivers pension payments dating back to 2017 in the first scheme of its kind for flexible private hire drivers.

Drivers will be auto-enrolled into a scheme where Uber will contribute 3% of earnings and they can choose to contribute a minimum of 5% of their qualifying earnings. They can also choose to opt out of the scheme.

The scheme will not be extended to workers who drive for its food delivery service, Uber Eats, however.

Uber drivers will also receive back payments dating back to 1 May 2017 or the date they started driving for the company if that is later.

The scheme will be run by NOW: Pensions and Adecco. Uber and the GMB Union called for other taxi operators such as Bold, Addison Lee and Ola to create a cross-industry pension scheme so drivers can save for retirement regardless of which platform they work for.

In March, Uber agreed to give its drivers a guaranteed minimum wage and employment rights such as holiday and sick pay, following a ruling in February by the Supreme Court that its drivers are workers rather than self-employed.

Pensions

Workplace pensions

Pensions auto-enrolment

Then in May it agreed to recognise a union for the first time, announcing that drivers could become members of the GMB union to bargain for better pay and conditions.

Jamie Heywood, regional general manager for northern and eastern Europe at Uber said drivers should be able to access a pension “no matter who they earn with”.

“Today I am extending an invitation to work with operators such as Bolt, Addison Lee and Ola to create a cross-industry pension scheme,” he said.

Alex Fleming, regional president of Northern Europe at Adecco, added: “As the UK labour market continues to be redefined as a result of the global pandemic, the need for equitable treatment and greater security is integral to building back better and supporting flexible workers.

“This is an industry first that not only paves the way in improving workers’ rights and protections, but also contributes to sustainable futures for drivers.”

Stephen Timms MP, chair of the Work and Pensions Select Committee, said the scheme would extend retirement saving opportunities to a large cohort of workers.

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“I also welcome Uber’s call for a cross-sector approach to pension saving. The all-party Work and Pensions Select Committee has called on ministers for a timetable for its promised Employment Bill, to improve protections for all gig-economy workers.”

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Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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