Get All Access for $5/mo

European Gig Workers May Soon Be Classified as Employees Employee status would grant benefits and protections to millions of gig economy workers.

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Europe, an international franchise of Entrepreneur Media.

Morsa Images | Getty Images

European gig workers—such as deliverers and drivers for Uber or Deliveroo—could soon be granted employee status, if some legislators get their way.

The European Commission has proposed new rules that would be tough on gig economy companies and pass certain expenses on to customers, while establishing certain protections for workers. According to the Commission, more than 28 million people in the EU work on digital labour platforms and that number is expected to balloon to 43 million by 2025. While most of them are self-employed, an estimated 5.5 million are incorrectly classified that way. Drivers, cleaners, couriers, masseuses, and other workers who use apps or other online platforms to conduct business would, under the new rules, be entitled to a minimum wage, holiday pay, health benefits, unemployment benefits, and legal protections.

Per a press release, the goals of the new measures are to "improve the working conditions in platform work and to support the sustainable growth of digital labour platforms in the EU."Workers are currently considered independent contractors and it will take several legislative steps before the new classification becomes law. The Commission put forward a communication setting out the EU approach and measures on platform work, a proposal for a directive on improving working conditions in such work and draft guidelines clarifying the application of EU competition law to collective agreements of self-employed workers seeking to improve their conditions on the job.

In a statement, Margrethe Vestager, Executive Vice President for A Europe Fit for the Digital Age, said, "With more and more jobs created by digital labour platforms, we need to ensure decent working conditions for all those deriving their income from such work. Our proposal for a Directive will help false self-employed working for platforms to correctly determine their employment status and enjoy all the social rights that come with that. Genuine self-employed on platforms will be protected through enhanced legal certainty on their status and there will be new safeguards against the pitfalls of algorithmic management. This is an important step towards a more social digital economy."

Nicolas Schmidt, Commissioner for Jobs and Social Rights, added, "We must make the most of the job-creating potential of digital platforms. But we should also make sure that they are quality jobs, that don't promote precariousness, so people working through them have security and can plan for their future. The Commission's proposal sets clear criteria to establish whether a platform is an employer, and if so, their workers are entitled to certain social protection and labour rights. Technological progress must be fair and inclusive, which is why the proposal also addresses transparency and oversight of platforms' algorithms."

The European Parliament and the Council will discuss the directive. If adopted, Member States will have two years to turn it into national law.

Science & Technology

5 Automation Strategies Every Small Business Should Follow

It's time we make IT automation work for us: streamline processes, boost efficiency and drive growth with the right tools and strategy.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Business News

SpaceX Sent a Toy Banana Into Space. Now You Can Buy One — But Not in Time for the Holidays.

Starship's sixth test flight carried a payload, a fake banana, as a zero-gravity indicator.

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Business Process

How CEOs Can Take Control of Their Emails and Achieve Inbox Zero

Although there are many methodologies that leaders can use to manage their emails effectively, a consistent and thought-through process is the most effective way to systemize and respond to emails and is a step of stewardship for the effective leader.