After prolonged negotiations, EU member states have finally agreed on rules that could potentially grant greater employment protection to the 28 million gig economy workers in the bloc. This agreement could lead to workers such as Uber drivers and food delivery riders receiving social security and other benefits in the future. The deal that was reached on Monday has ended the lengthy discussions among the 27 member states that were hindering the drafting of the legislation.
Paulina Brandberg, the Swedish Minister for Gender Equality and Working Life, who chaired discussions in Luxembourg, stated that “the gig economy has brought many benefits to our lives, but this must not come at the expense of workers’ rights.” Furthermore, she added that “the council’s approach strikes a good balance between protecting workers and providing legal certainty for the platforms that employ them.”
Currently, most workers at companies such as Deliveroo are registered as self-employed. However, the proposals agreed by the European Council stipulate that companies that control workers’ hours, dictate what they wear at work, and restrict whether they can accept or turn down work, must classify them as employees and bear the extra costs. The package also includes the first EU rules governing the use of artificial intelligence in the workplace, requiring companies to ensure human oversight of their automated monitoring and decision-making systems.
Next, member states will engage in discussions on the proposals with the European Parliament, with time running out to secure the package before the end of the EU’s legislative cycle in summer 2024. In December, discussions between ministers broke down, with some countries in favor of the European Commission proposals, including fewer conditions before workers are classified as employees, while others called for a less restrictive regime for businesses.
Although the deadlock was broken on Monday, Germany, Spain, Greece, Estonia, and Latvia abstained on the text, indicating a persistent division among member states. Additionally, eight “ambitious” countries, including Spain and the Netherlands, stated that the agreed position was “less ambitious and effective” than previous proposals by the commission. This points to a potential division among countries as talks proceed, particularly over the status of an “employee.”
The European Parliament’s position would classify gig workers as employees under fewer conditions than the council’s position, leading to intense discussions ahead for the two institutions. The more workers registered as employees instead of as self-employed, the more companies such as Uber and Deliveroo will be liable to pay for employment benefits such as parental leave and social security. As a result, this text has been one of the most heavily lobbied in Brussels in recent years, according to MEPs and diplomats.
Chief executives, including Uber boss Dara Khosrowshahi and Markus Villig, the head of ride-hailing rival Bolt, warned in a letter to the Financial Times earlier this month that employment conditions would take away couriers’ independence. Anabel Diaz Calderon, Vice President at Uber, stated that “both the council and parliament’s positions would likely force hundreds of thousands of people out of work, and push a small minority onto employment contracts they don’t want.”
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