Food delivery shares rise ahead of EU draft rules on contract labor

A Just Eat delivery man rides his bike in Nice
FILE PHOTO: A Just Eat delivery man rides a bicycle in Nice amid the coronavirus disease (COVID-19) outbreak in France, February 16, 2021. REUTERS / Eric Gaillard

December 7, 2021

AMSTERDAM (Reuters) – Shares of car-sharing and food delivery companies rebounded on Tuesday, ahead of a European Commission proposal scheduled for December 9 that will determine when people Traffic should be considered employees and when should they be considered independent contractors.

The Financial Times on Tuesday reported that the proposal, which has been in development for years, is expected to place the burden of proof on companies, rather than workers, to show when people deliver their self-employed.

A spokesman for the European Commission declined to be mentioned until announced on Thursday.

Shares of the Netherlands’ Just Eat were up 6.3% by 1030 GMT, Germany’s Delivery Hero was up 4.5 and Britain’s Deliveroo was up 1.9%, reversing similar declines on Monday, in an apparent relief rally to recover some of Monday’s losses. Uber shares closed at $38.49 in the United States.

Deliveroo was hit hardest by the proposed rule change, while larger European rival Takeaway used an employment model, Citi analysts said in a note. . Delivery Hero and Uber have larger operations in markets outside of Europe.

Currently, contract workers in Europe are often seen as self-employed, helping companies ease their obligation to pay them minimum wages or give them sick leave or holiday pay.

However, court rulings in the Netherlands, UK, Italy and Spain over the past two years have challenged that.

The FT, citing the unpublished proposal, said that could mean a reclassification of 4.1 million contractors as employees, resulting in €484 million ($545 million) in annual extra payments. and entitle them to the same “rights and protections” as other employees under European Law.

A study by Copenhagen Economics commissioned by an industry group for platform companies published last month suggested that the new European rules could lead to the loss of 75,000 jobs.

(1 dollar = 0.8875 euros)

(Reporting by Toby Sterling and Louise Heavens) Food delivery shares rise ahead of EU draft rules on contract labor

Bobby Allyn

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