The European Union (EU) has reached an agreement on rules that can grant greater job protections to gig economy workers. These rules could potentially allow workers to receive social security and other benefits, including Uber drivers and food deliverers. The packaging of the legislation will now soon launch into negotiations between the 27 member states. Most workers at companies such as Uber and Deliveroo are mainly registered as self-employed. However, under the new proposals approved by the European Council, companies that control workers’ hours, clothing, and restrict whether they can accept or refuse work will have to treat them as employees and bear the additional costs.
This new rule paves the way for greater job protections for over 28 million workers in the EU, including those working in the gig economy. The agreement includes the first EU rules concerning the use of artificial intelligence in the workplace. Companies must ensure human oversight of their automated surveillance and decision-making systems.
The definition of “employee” has huge implications for companies like Uber and Deliveroo. The more workers there are registered as employees rather than self-employed, the more these companies will be required to pay social benefits such as parental leave and social security. As a result, the text has been one of the most lobbies in Brussels in recent years, according to MEPs and diplomats.
The European Parliament has adopted a position that would classify construction workers as employees under fewer conditions than the Council’s position, leading to intense discussions ahead for both institutions. The more workers are registered as employees, the more these companies will be required to offer social benefits such as parental leave and social security.
Despite the new agreement and the implications it holds for gig economy workers, member states remain divided on the interpretation of the said agreement. The agreed position is “less ambitious and effective” according to eight countries, including Spain, and the Netherlands, who have classified the position as a lack of unanimity between the countries and a division as talks get underway, particularly on “employee” status.
Anabel Diaz Calderon, vice-president of Uber, said: “Instead of providing legal certainty and mandatory protections for genuinely self-employed people, the positions of the council and parliament would likely force hundreds of thousands of people out of their jobs and push a small minority into work contracts they don’t want.” The proposed EU rules, Diaz Calderon argued, ignore the preferences of many gig economy workers, who value the ability to work flexibly.
This new development in the EU can potentially upend the work arrangements in the gig economy in the coming years. However, with increased regulations, companies like Uber and Deliveroo will be able to ensure that their workers receive a fair and just payment, which they believe will deprive couriers of their independence.
Summary:
EU member states have agreed on rules that could grant greater job protection to gig economy workers. An agreement on industry rules could eventually allow workers to receive social security and other benefits. Under the new proposal, companies that control workers’ hours, clothing, and restrict whether they can accept or refuse work will have to treat them as employees and bear the additional costs. Despite the new agreement, member states remain divided on the interpretation of the said agreement.
Additional Piece
The gig economy has been growing at a tremendous pace in recent years, and the number of employees working under gig arrangements is expected to rise even further. However, the gig economy’s growth has also raised concerns about workers’ rights, with companies such as Uber and Deliveroo facing scrutiny over their employment policies. In this context, the EU’s new rules could offer a significant boost to gig economy workers, giving them greater job protections and improving their work conditions.
One of the main benefits of the proposed EU rules is the potential for workers to receive social security and other benefits. Gig economy workers, such as Uber drivers and food deliverers, have often been classified as self-employed, meaning that they don’t receive social protections like other employees. However, under the proposed rules, companies that control workers’ hours, clothing, and restrict whether they can accept or refuse work will have to treat them as employees, allowing them to receive benefits like parental leave and social security.
The proposed rules also have implications for the way companies operate, particularly in terms of the definition of “employee” status. The more workers that are classified as employees, the more companies like Uber and Deliveroo will be required to pay in terms of social benefits. However, the interpretation of these rules has been a point of contention between member states, with some arguing that the proposed rules are too restrictive for companies operating in the gig economy. For companies like Uber, complying with these rules could potentially add significant overhead costs and reduce the flexibility that workers value.
Despite these challenges, it’s clear that the gig economy is changing rapidly, and it’s likely that companies like Uber and Deliveroo will have to adapt to stay competitive. As legislation around the world catches up to the changing nature of work, companies will have to offer fair and just conditions to attract and retain workers. Ultimately, the proposed EU rules could help bridge the gap between gig economy workers and traditional employees, improving work conditions and giving workers greater job protections. With gig work likely to remain an important part of the economy in the years to come, finding the right balance between flexibility and worker protections will be critical in ensuring workers’ wellbeing.
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EU member states have reached a long-awaited agreement on rules that pave the way for greater job protections for the 28 million workers in the bloc’s gig economy.
Monday’s agreement on industry rules could eventually allow workers, including Uber drivers and food deliverers, to receive social security and other benefits. The agreement opens endless negotiations between the 27 member states which have been delaying the drafting of the legislation.
“THE gig economy has brought many benefits into our lives, but this must not come at the expense of workers’ rights,” said Paulina Brandberg, Sweden’s Minister for Gender Equality and Working Life who chaired the discussions in Luxembourg.
“The council’s approach strikes the right balance between protecting workers and ensuring legal certainty for the platforms that employ them,” she added.
Most workers at companies such as Deliveroo are registered as self-employed. Under proposals approved by the European Council, companies that control workers’ hours, what they wear to work and restrict whether they can accept or refuse work will have to treat them as employees and bear the extra costs.
The agreement also includes the first EU rules on the use of artificial intelligence in the workplace, with companies required to ensure human oversight of their automated surveillance and decision-making systems.
Member states will now engage in discussions on the proposals with the European Parliament, with time running out to get the package before the end of the EU legislative cycle in summer 2024.
Talks between ministers broke down in December. Countries were divided between those ready to accept the European Commission’s proposals, involving fewer conditions before workers were considered employees, and those calling for a less restrictive regime for companies.
The deadlock was broken at a meeting in Luxembourg on Monday. While no member state voted against the draft, Germany, Spain, Greece, Estonia and Latvia abstained on the text, two EU diplomats said.
However, in a sign of continued division between member states, eight so-called ‘ambitious’ countries, including Spain and the Netherlands, said the agreed position was ‘less ambitious and effective’ than the committee’s previous proposals .
Their abstention points to a lack of unanimity between the countries and a possible division as talks get under way, an EU official said, particularly on “employee” status.
The European Parliament has adopted a position that would classify construction workers as employees under fewer conditions than the Council’s position, leading to intense discussions ahead for both institutions, the people said. “They will have to find a solution that works,” said a person with intimate knowledge of the discussions.
The definition of “employee” has huge implications for companies like Uber and Deliveroo. The more workers there are registered as employees rather than self-employed, the more these companies will be required to pay social benefits such as parental leave and social security.
As a result, the text has been one of the most lobbies in Brussels in recent years, according to MEPs and diplomats. Chief executives including Uber boss Dara Khosrowshahi and Markus Villig, the head of rival Bolt, warned this month in a letter to the Financial Times that the conditions of employment would deprive couriers of their independence.
Anabel Diaz Calderon, vice-president of Uber, said: “Instead of providing legal certainty and mandatory protections for genuinely self-employed people, the positions of the council and parliament would likely force hundreds of thousands of people out of their jobs. and push a small minority into work contracts they don’t want.
https://www.ft.com/content/5fb16bfc-b901-408e-8eb0-5dae951044e8
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