Food delivery company Just Eat is to offer couriers pay by the hour rather than per job in a boost to gig economy workers.
The move will mean its workers will earn at least the national minimum wage, increasing the security of their income.
Starting in London but with the rest of the UK to follow next year, Just Eat will also pay pension contributions, holiday pay, sick pay and maternity or paternity pay.
Just Eat couriers will be able to opt out of the new hourly-pay scheme and continue to work as independent contractors if they wish. The plan will create more than 1,000 jobs and will be a mixture of full-time, part-time, and zero-hours contracts.
Andrew Kenny, managing director for the UK at Just Eat, said: “We believe it is our responsibility to offer couriers a wide range of working options and benefits.
“From our experience in other European markets, we know many couriers value the benefits our new model offers and with the use of electric vehicles, this launch will also help us build a sustainable future for food delivery in the UK.”