The European Parliament and EU member states reached a significant agreement on Wednesday to improve working standards for workers who use apps, such as ride-hailing drivers.
Once enacted, the rule will be a global first regarding the gig economy and will be part of the European Union’s drive to clarify the status of millions of workers.
Because there are now uniform rules for all 27 nations, the expectation is that courts across Europe will not issue widely disparate verdicts.
For many years, corporations like Uber have been able to avoid minimum wage and holiday pay regulations by claiming their workers are not employees but independent contractors.
According to the parliament, under the new rule, many platform workers in Europe could be reclassified as employees and so have access to labor and social security benefits.
According to the parliament, at least 5.5 million persons may be “wrongly classified as self-employed.”
In Europe, there are around 28 million gig workers that rely on online platforms, with that figure predicted to climb to 43 million by 2025.
“This is a revolutionary agreement and the first legislative framework for digital platform workers,” said MEP Elisabetta Gualmini, the rapporteur who spearheaded the text in parliament.
“We have transparency and accountability for algorithms, we have better rights for the least protected workers in the world and we have fair competition for platforms,” she added.
If a worker fits two of the five conditions outlined in the legislation, it is assumed that they are an employee.
constraints on how much workers can be paid, remote supervision of their job, control over what tasks they do, restrictions on their hours and control over working circumstances, and constraints on their appearance or conduct are the five requirements.
The list can be expanded by EU member states. Workers can also push EU member states to broaden the list.
‘Legal certainty’
The lobbying group Delivery Platform Europe, which represents companies such as Uber Eats and Deliveroo, had previously criticized the draft laws.
Once formally adopted by member states and the parliament, the text will become law.
According to an Uber spokeswoman, the firm supports efforts to improve working conditions but hopes that the document “delivers on these principles while ensuring legal clarity.”
“We remain committed to Europe and we’ll keep advocating for a model that gives platform workers what they say they want: independence, benefits and flexibility.”
The EU’s jobs and social rights commissioner, Nicolas Schmit, welcomed the agreement.
“The new rules we have agreed ensure platform workers, such as drivers and riders, receive the social and labour rights they are entitled to, without sacrificing the flexibility of the platform business model,” Schmit said.
The standards also state that platform workers should have access to information about how an app’s algorithms work and how their behavior influences automated system decisions.
According to the parliament, no platform will be able to fire employees or suspend accounts without human intervention.
There are also stronger personal data standards, which prohibit platforms from processing data such as personal beliefs and private discussions with colleagues.