Uber, Deliveroo and Gig Economy face strict new rules in Europe

The driver uses the Uber app to unload London passengers.

Chris J. Ratcliff | Bloomberg via Getty Images

European lawmakers are proposing strict new rules for gig economy companies such as: Uber When Amazon-support Deliveroo..

A proposal released Thursday by the European Commission, the EU’s executive body, is for gig economy companies to find jobs using apps and online platforms, drivers, courier companies, cleaners, fitness coaches, massagers and others. It’s a big step to ask for the classification of workers. As an employee.

Employee status allows workers to receive minimum wages, holiday wages, unemployment and health insurance, and other legal protections, depending on the country of work.

Proposals welcomed by trade unions could impact an estimated 4.1 million gig economy workers across Europe. They have to go through several legislative steps before they become law.

Gig economy companies have long classified workers as independent contractors, allowing them to minimize spending and limit legal liability.

Working for these companies appealed to people who didn’t want to get 9-5 permanent jobs, and the platform made it easy to move and order food for consumers.

However, the Covid-19 pandemic shows how vulnerable these platforms are. During the blockade, Uber driver jobs were quickly exhausted, forcing many drivers to find new jobs elsewhere.

Not surprisingly, Uber and other gig economy companies are opposed to the reform of the Commission and can have a serious impact on their business models. The new rules can bring them billions of new costs.

The ride-hailing service giant said the costs would be passed on to consumers and about 250,000 courier companies and 135,000 drivers would lose their jobs under the proposed rules across Europe.

“Uber is committed to improving the working conditions of hundreds of thousands of drivers and courier companies that rely on our app for flexible work,” a Uber spokeswoman said. It states in a statement shared with CNBC.

“We have worked with governments in Europe and other industries on how to enhance the work of the platform without jeopardizing the flexibility that independent workers desire.”

“But I’m worried that the European Commission’s proposal could have the opposite effect. It puts thousands of jobs at risk, destroys small businesses as a result of a pandemic, and relies on consumers across Europe. Damage important services “

But Just Eat is in favor of reform. The company’s CEO, Jitse Groen, Said on twitter Just Eat supports “Proposals to improve workers’ condition and support access to social protection.”

Although some countries have already introduced their own gig economic legislation, the legislation proposed by the European Commission is the most widely applicable legislative endeavor.

The EU predicts that the number of people working on digital platforms across the block will increase from 28 million today to 43 million by 2025.

Uber, Deliveroo and Gig Economy face strict new rules in Europe

Source link Uber, Deliveroo and Gig Economy face strict new rules in Europe

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