Uber, Deliveroo may be affected by EU draft rules on contract workers

FILE PHOTO: A Deliveroo delivery driver in London, UK
FILE PHOTO: A Deliveroo delivery driver in London, Britain, March 31, 2021. REUTERS/Toby Melville/

December 7, 2021

By Foo Yun Chee

BRUSSELS (Reuters) – Uber, Deliveroo and other online platform companies may have to reclassify some of their workers as employees under draft European Union rules to strengthen their rights their society, according to an EU document reported by Reuters.

The proposal from the European Commission, the world’s first, comes as countries and courts across Europe try to address shortcomings in the gig economy, with Judges in most cases favor workers’ rights to the labor rights afforded to those who work in the grout shop.

The document estimates about 15 companies and between 1.7 million and 4.1 million workers out of 28 million could be affected by the rules that lay out five criteria for identifying employees.

Workers in the Gig economy can be classified as employees if online platforms determine their salaries, set standards of conduct and appearance, monitor job performance through electronic means, restricting their ability to choose their work hours or tasks and preventing them from working for third parties.

A platform company is considered an employer if it meets two of the criteria, the newspaper said.

The rules will also require ride-hailing, food delivery and other companies to provide information to employees about how their algorithms are used to monitor and evaluate them and for allocations. duties and stipulations of fees. Employees can claim compensation for violations.

The rules place a burden on online platforms to provide proof that these do not apply to them. They may also object to reclassification through administrative process or in court.

EU countries could see an annual increase of 1.6 billion to 4 billion euros in tax contributions from reclassified employees, the newspaper said.

The draft rules will need to be approved by EU member states and EU lawmakers before they can be adopted, with the Commission estimating a 2025 timeframe.

Sanctions for non-compliance, which can include fines, will be imposed by EU countries while national authorities failing to take the necessary measures could face legal action of the Commission.

In a series of setbacks for online platforms, Britain’s Supreme Court in February ruled that Uber drivers are entitled to worker rights, such as a minimum wage, while A Spanish court last year said drivers for Barcelona-based food delivery app Glovo were employees, not freelancers.

Unions say the gig economy is exploitative while companies say the business model gives workers flexibility.

Estonian car-sharing and food-delivery start-up Bolt said the draft regulation could put workers out of work. This will result in one in two drivers losing their jobs, equivalent to at least 140,000 people across the EU, said Aurelien Pozzana, head of Western European Public Policy at Bolt.

Deliveroo also expressed similar concerns. “These proposals would increase uncertainty and would be better for attorneys than self-employed foundation workers,” the spokesperson said.

(Reporting by Foo Yun Chee; Editing by Mark Heinrich) Uber, Deliveroo may be affected by EU draft rules on contract workers

Bobby Allyn

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