Drivers will be guaranteed to earn at least the national living wage of £8.72 (about $15.10) an hour starting Wednesday. They will also be entitled to vacation pay and other benefits. The U.K. is the first country where Uber will use the model. (Bloomberg)

Talking point: The reclassification follows a landmark ruling from the U.K.’s top court last month in favour of a group of drivers who sued the company in 2016 claiming they were employees, not contractors. Uber didn’t say how much reclassifying the workers would cost, but the firm is maintaining its earnings forecasts. Some believe the move could set a precedent for Uber to extend the model to other jurisdictions. Critics, however, say the San Francisco-based firm is still making it harder for workers to claim employee status. Last week, the company said it was lobbying provincial governments in Canada to extend certain benefits to gig workers without having to consider them employees. The Ontario Federation of Labour has since called on the provincial government to reject the proposal, arguing it would “trap drivers in sub-minimum wage work.”