The EU has taken a leading global role in cracking down on tech companies to ensure everything from workers' rights to online safety. The European Commission, the EU's executive branch, estimates some 28 million people on the continent are self-employed on digital platforms, rising to 43 million by 2025, but predicts as many as 4.1 million could be reclassified as employees under the rules. The criteria include whether an app decides pay levels electronically supervises work performance restricts a worker's freedom to choose work hours, accept jobs or use subcontractors dictates a worker's appearance and conduct with customers or limits the possibility for workers to build their own client bases or work for anyone else. Under the EU rules, which still need approval by the European Parliament, a platform that meets at least two criteria will be deemed an “employer" and people working for that company will be reclassified as “workers" with the right to a minimum wage, paid vacation, pensions and unemployment and sickness benefits. Gig work's flexibility is a selling point for many, but workers also complain that they end up making less than minimum wage after expenses or waiting time are accounted for. While the apps provide short-term work for millions of people, their rampant growth has upended traditional labor and business models, resulting in showdowns between companies and regulators worldwide. Gig economy workers and platforms have fallen between the cracks of existing employment legislation, and the measures being considered by the 27-nation bloc, which would take years to come into force, are aimed at clearing up those gray areas.Īpp-based gig work platforms have boomed in the digital economy, especially during the COVID-19 pandemic when demand for food delivery services mushroomed. The draft rules outlined Thursday aim to clarify the labor status of people employed by app-based companies like ride-hailing service Uber and food delivery business Deliveroo and would add oversight for the algorithms they use to manage workers. LONDON (AP) - A new European Union plan to improve conditions for the growing number of gig economy workers could mean millions more of them are classified as employees entitled to benefits, the latest setback for digital platforms that rely on independent contractors to deliver food and offer rides.
The European Union unveiled plans to improve conditions for the growing number of gig economy workers that could reclassify some as employees who must earn benefits, the latest setback for digital platforms that rely on independent contractors to deliver food and offer rides. Comments FILE - A gig economy ridersfor app-based meal delivery platform Deliveroo takes part in a demonstration, near the company headquarters in London, Wednesday, April 7, 2021.