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Brussels has taken another temporary step towards improving working conditions for workers at ride-sharing and delivery groups such as Uber and Deliveroo, after a long battle with individual member states over the rules governing employee status.
Ministers from 27 countries on Monday ratified rules that will help “define the employment status” of some 28 million workers in the EU's “gig economy,” allowing them to benefit from employment rights such as parental leave and holiday pay, the European Council said on Monday. Monday.
However, the gig economy industry said the guidance fell short of creating harmonized rules in the bloc for its workers, meaning regulation would remain fragmented.
An Uber spokesperson said: “European Union lawmakers voted to maintain the status quo today, with the status of platform workers continuing to be determined from country to country and from court to court.”
The company added: “Uber is now calling on European Union countries to introduce national laws that give platform workers the protection they deserve while maintaining the independence they prefer.”
The Council, the Brussels body that represents member states, said each member state has two years to sign the directive into law. The commission drafted the rules for the first time in 2021.
“This is a momentous day for gig workers,” said Nicola Schmidt, Commissioner for Jobs and Social Rights. “New EU rules will give platform workers more rights and protections without hindering platforms’ ability to develop. The EU delivered today.”
An early version of the directive set out rules at the EU level, but it was canceled after some countries refused. The talks faltered after this agreement failed to gain support from member states including France, Germany, Estonia and Greece.
But the countries found a compromise. As part of the deal, in cases where a worker is able to show at a national level that the company has “control and judgment” over its activities, he or she may be classified as an employee. This designation would give them access to benefits, such as Social Security and Medicare. The burden will now be on companies to prove that their workers are not employees.
At the same time, gig economy companies have resisted EU-level regulations imposed on them by Brussels, because they fear the rules will bring them higher costs, such as paying more for health care coverage. They also have concerns about the cost to consumers.
The European Commission's preliminary estimates indicate that the regulations will raise prices for services provided by companies such as Uber and Bolt by 40 percent.
