Groundbreaking EU legislation redefines rights for gig workers, targets app-based platforms

The European Parliament, in collaboration with EU member states, finalized a revolutionary agreement on Wednesday, aiming to fortify conditions for app-based workers, particularly those in the gig economy such as ride-hailing drivers.

Once formally adopted, this landmark legislation will be the world’s first comprehensive regulation covering the gig economy, marking a significant stride in the European Union’s commitment to providing clarity on the status of millions of workers.

The legislation seeks to eliminate the disparities in court decisions across the EU by establishing uniform rules for all 27 member states.

Companies like Uber, which have historically evaded regulations on minimum wage and holiday pay by categorizing workers as independent contractors, may face a paradigm shift under the new law.

Under the proposed legislation, a substantial number of platform workers in Europe could be reclassified as employees, thereby granting them access to essential labor and social protection rights.

The European Parliament estimates that at least 5.5 million individuals may have been wrongly classified as self-employed.

With approximately 28 million gig workers dependent on online platforms in Europe, this legislation comes at a crucial juncture, given the projected rise to 43 million by 2025.

MEP Elisabetta Gualmini, the driving force behind the legislation, declared it a “revolutionary agreement” and the first legislative framework for digital platform workers. She emphasized the inclusion of transparency and accountability for algorithms, enhanced rights for vulnerable workers, and fair competition for platforms.

The legislation introduces a set of criteria, where meeting two out of five will presume a worker as an employee.

These criteria include limits on remuneration, remote supervision, control over tasks, restrictions on hours and conditions, and limitations on appearance or conduct. Member states have the flexibility to expand this list, with provisions for workers to lobby for further expansion.

Delivery Platform Europe, representing major players like Uber Eats and Deliveroo, had previously criticized the draft legislation. However, the legislation is set to become law upon formal adoption by member states and the parliament.

Uber, expressing support for improved working conditions, expressed a desire for the text to ensure legal clarity while delivering on principles of independence, benefits, and flexibility for platform workers.

Nicolas Schmit, the EU’s jobs and social rights commissioner, welcomed the agreement, stating that the new rules strike a balance between ensuring social and labor rights for platform workers and maintaining the flexibility of the platform business model.

The legislation also mandates platforms to provide workers access to information on algorithmic processes and introduces safeguards against unjust terminations or suspensions without human oversight.

Additionally, stricter rules on personal data processing have been instituted, prohibiting platforms from handling data related to personal beliefs and private exchanges among colleagues.