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EU lays out plan favoring gig workers; targets Uber & Deliveroo models

EU lays out plan favoring gig workers; targets Uber & Deliveroo models
EU lays out plan favoring gig workers; targets Uber & Deliveroo models

The European Commission has laid down some draft rules for the gig economy to improve working conditions and employee benefits provided to drivers of online platforms like Uber and Deliveroo. Labor unions feel that the move is long overdue, while some companies have argued that it may lead to job losses.

The proposal, which needs to be presented to and approved by EU countries and lawmakers, is an attempt to regulate companies and create equal conditions for online businesses as well as traditional firms.

Nicholas Schmit, Jobs and Social Rights Commissioner stated that no one is trying to stop or hamper the development of the platform economy. He added that the rules were necessary to ensure that new business models endorse labor standards.

The EU executive mentioned that the draft rules could potentially apply to over 4.1 million of the 28 million workers at online platforms across the 27-country bloc.

As per the draft rules, online companies that decide the pay scale and standards of conduct for their workers would have to categorize them as employees eligible for a minimum wage, paid holidays, as well as pension rights.

Online food delivery companies have fought cases around Europe and the U.S. to have riders and drivers categorized as self-employed contractors, rather than employees.

Under the Commission’s proposal, companies will be considered employers if they monitor the workers' performance through electronic means, confine their ability to decide their working hours or tasks, and stop them from working for third parties.

The proposal shifts the onus of proof onto companies when any questions regarding whether a worker is an employee, or a self-employed contractor arise.

As per sources, the EU proposal will not dismantle online delivery models but will give some power to couriers. For consumers, the long-term result would likely be a small increase in prices or delivery fees.

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for and a few other distinguished news platforms, pertaining to business and finance.