FREENOW worker status
When you join FREENOW as a PHV driver, you automatically receive Worker status.
See more details regarding these changes, and what it means for you below.
About worker status
What is worker status?
Worker status is unique under UK employment law, and entitles certain self-employed individuals to National Living Wage, Pension & holiday pay when they work with FREENOW.
Who is entitled to worker status?
All our UK PHV drivers have a worker status and enjoy the flexibility over when, where or how you choose to work through the FREENOW app. Please note that you must accept the Terms & Conditions of the Worker status.
What does the FREENOW worker status offer entail?
We are proud to offer fair fees for Journeys completed on our App and offer a National Living Wage top-up guarantee, holiday pay and access to a pension scheme. As we operate in a dynamic & constantly evolving sector where drivers are at the centre of our operations, additional benefits may be considered at a later stage.
How are the worker benefits calculated?
All worker benefits are calculated based on drivers’ engaged time on the app. Engaged time commences after acceptance of an invitation for an ad-hoc booking, and on activating a Journey for a pre-booked job. In both cases, the engaged time is completed at the end of the journey when the user has arrived at their destination or when the journey is cancelled by the user.
Can I still work on other platforms?
Yes, you will continue to have full flexibility over when, how, and with whom you choose to drive.
About national living wage guarantee
How am I paid? When will I receive top-up payments if applicable?
Our UK Drivers benefit from the National Living Wage top-up guarantee. If drivers’ earnings (including fees, incentives and other payments) in a Driver Statement period are lower than the National Living Wage for the time engaged (taking into account expenses at the HMRC mileage rate*) for that period, FREENOW will top up your earnings in that payment cycle, without any delay. Tips are always extra.
*The rate for vehicle expenses is 45p per mile for the first 10,000 miles driven. After 10,000 miles it is 25p per mile.
About pensions
Who is FREENOW's pension provider?
FREENOW has partnered with Smart Pension. For Commonly asked questions regarding your Pension scheme with Smart Pension, you can find out more here.
How do I sign up for my FREENOW pension?
If you earn more than £192 in any week, FREENOW will automatically enrol you into the Smart Pension Pension programme. Once enrolled, you will receive an activation email from Smart Pension to explain how to access your account for the first time.
How will my pension scheme work?
FREENOW will contribute 3% towards your pension, based on workers themselves making a 5% contribution. All contributions are relative to qualifying earnings, and considers any National Living Wage top-up and holiday pay.
How does FREENOW calculate their pension contribution?
FREENOW will contribute 3% into your pension, provided you are eligible. This is calculated based on your qualifying earnings, including your trip earnings and bonuses.
Can I change how much I contribute into my pension?
The minimum contribution to your Pension should always be 8%, and in FREENOW’s pension scheme with Smart Pension, this will be split as 3% contributed by FREENOW, and 5% by you, the driver. You can increase your pension contribution at any time in the ‘Your Pension’ section of your SmartPension account.
Can I opt out of the pension scheme?
If you earn more than £192 in any week, you will be automatically enrolled in the pensions scheme. You will have the choice to opt out of the scheme, although there will be no contributions from FREENOW should you choose to opt out. To find out more about how to opt out of your pension scheme, please see the Smart Pension member support here.
I also drive for another operator where I have access to their pension scheme. Will that have an impact on my pension with FREENOW?
No, both pensions will run in parallel and are independent of each other.
About holiday pay
When will I receive my holiday pay?
Holiday pay will be automatically added into your Driver Statements, and you will see this reflected under “holiday pay” in your weekly pay statement.
How is my holiday pay calculated?
You are entitled to 5.6 weeks’ paid holiday per holiday year. To reflect the flexible nature of our relationship, and the individual nature of each engagement you choose to undertake by completing individual Journeys, and for ease of administration, we pay you holiday pay in each Driver Statement amounting to 12.07% of total earnings, including any National Living Wage top-up payments
Will I have to request holiday days to receive my holiday pay?
It is your responsibility to ensure you take at least 5.6 weeks of holiday in each year. Given the flexible nature of your work (and, in particular, your ability to choose whether and when you want to work) and the holiday pay you receive (and your ability to put these to one side and draw down on them as and when you take holiday should you choose) you receive compensation for such weeks of leave whenever you decide to take them. You do not need our approval at any time to take holidays.
Other questions
How does being a worker impact my tax status?
You are considered ‘self-employed’ for tax purposes, and you should therefore continue to complete your annual tax return. Further information on how to complete your tax return can be found here.
Why doesn't the worker status apply to taxi drivers?
Drivers are at the centre of our business, and we engage with them on a regular basis. An internal survey conducted in January 2023 among black cab drivers revealed that only 10% preferred worker status, while the feedback from key industry stakeholders and in taxi driver focus groups was even more overwhelmingly in favour of remaining independent contractors - contracting with passengers directly as they do in their normal business.
At the same time, we are looking into options to offer benefits for taxi drivers on the FN app in the near future.