Uber may face stringent requirements on pay and workers’ rights following Department for Transport’s decision to set up a working party to scrutinize the guidance given to local authorities.
Labour MP had argued in a Westminster debate that facts about licensing were unclear and difficult to understand and this left interpretation to any transport authority.
Chairman of the Commons select committee on work and pensions in the last parliament, Frank Field once accused Uber of taking advantage of the fact that local authorities hadn’t set minimum conditions for new operators. He said the company was using the fact to avoid paying drivers a ‘decent’ living and acting as a "destructive force for many people's living standards".
In response, transport minister John Hayes said he would study the "guidance that is issued to local authorities who may be unaware of the extent of their powers, and certainly may be unaware of their ability to use them".
"There are problems with different local authorities interpreting those powers in different ways, and it seems to be very important that we should give clarity about that through the advice that we offer to local authorities."
The UK’s law on taxi licensing changed in 2015, which saw the removal of the condition requiring drivers issued with private-hire license to return to the local authority where they were issued the licence between jobs.
Mr Field said: "Uber and similar companies are registering we know in London, in Leeds, in Liverpool and in Glasgow, and getting licenses, as they have to, from the transport executive of those areas
"Is it because the legislation is unsure, difficult to interpret, that these transport executives are not in fact saying these are the minimum conditions you the company must meet if you wish us to grant you a licence to operate in our area?"
The decision to establish a working party comes ahead of the publication of the government review into the gig economy, due for release in June.
As a transport company, we like UBER They have changed the way of Taxi and transportation business. We think goverment and other bodies pushing UBER too far.