EU ministers approve ‘status quo’ rules for gig economy workers

Brussels has taken another tentative step towards improving employment conditions for workers at ride-sharing and delivery groups such as Uber and Deliveroo, following a long fight with individual member states over the rules governing employee status.

Ministers from the 27 countries on Monday ratified rules that will help “determine the employment status” of about 28mn EU “gig economy” workers, allowing them to benefit from labour rights such as paternity leave and holiday pay, the Council of the EU said on Monday.

However, the gig economy industry said the directive fell short of creating harmonised rules in the bloc for their workers, which means the regulation will remain fragmented.

“EU lawmakers have voted to maintain the status quo today, with platform worker status continuing to be decided country-to-country and court-to-court,” an Uber spokesperson said.

“Uber now calls on EU countries to introduce national laws that give platform workers the protections they deserve while maintaining the independence they prefer,” the company added.

Each member state had two years to sign the directive into law, said the council, the Brussels body that represents member states. The commission first drafted the rules in 2021.

“This is a momentous day for gig workers,” said Nicolas Schmit, commissioner for jobs and social rights. “New EU rules will give platform workers more rights and protections without hampering platforms’ ability to develop. The EU has delivered today.”

An early version of the directive had outlined the rules at EU level but that was scrapped after pushback from some countries. Talks stalled after that deal failed to garner support from member states including France, Germany, Estonia and Greece.

But countries found a compromise. As part of the deal, in cases where a worker is able to show at a national level that a company has “control and decision” over their activities, they may be classified as an employee. That designation would give them access to benefits, such as social security and healthcare. The onus now will be on companies to prove that their workers are not employees.

Gig economy companies meanwhile have resisted EU-wide regulation imposed on them from Brussels since they fear the rules will bring them higher costs, such as paying extra for healthcare coverage. They also have concerns over the cost to consumers.

Early estimates by the European Commission said the regulations would push up prices for services from companies such as Uber and Bolt by 40 per cent.