More than 70,000 drivers, who are now to be treated as workers under UK employment law, will be in line for the benefits – which are set to be take effect from Wednesday.
Jamie Heywood, Uber’s regional general manager for Northern and Eastern Europe described it as “an important day” for drivers in the UK, while trade unions bosses said “Uber had to be dragged kicking and screaming to do the right thing” after a long-running legal battle.
It comes a month after the Uber firm lost a legal battle in the UK, begun in 2016, over drivers’ status.
Drivers said they were workers whereas Uber operating companies said drivers were contractors, not workers.
The Supreme Court ruling defined Uber drivers as workers, prompting lawyers to say it meant they would be entitled to workers’ rights such as holiday pay and compensation for lost pay.
Mr Heywood said: “Uber drivers will receive an earnings guarantee, holiday pay and a pension, and will retain the flexibility they currently value.
“Uber is just one part of a larger private-hire industry, so we hope that all other operators will join us in improving the quality of work for these important workers who are an essential part of our everyday lives.”