EU deal paves way for gig economy workers to get more protections

EU member states have reached long-awaited agreement on rules, paving the way for greater job protection for the bloc’s 28 million gig economy workers.

Monday’s agreement on industry rules could finally allow workers, including Uber drivers and food delivery riders, to receive Social Security and other benefits. The deal unlocks drawn-out negotiations between the 27 member states that were delaying the drafting of the law.

“The gig economy has brought many benefits to our lives, but it must not come at the expense of workers’ rights,” said Paulina Brandberg, the Swedish minister for gender equality and working life, who chaired the discussion in Luxembourg.

“The Council’s approach strikes a fine balance between protecting workers and providing legal certainty for the platforms that employ them,” she said.

Most employees of companies like Deliveroo are registered as self-employed. Under proposals approved by the European Council, companies that regulate workers’ hours, what they wear to work and restrict whether they can accept or decline work will have to be classified as employees and pay extra costs have to be borne.

The deal also includes the first EU rules on the use of artificial intelligence in the workplace, obliging companies to guarantee human oversight of their automated monitoring and decision-making systems.

Member states will now engage in discussions on the proposals with the European Parliament, with time running out to secure the package before the end of the EU legislative cycle in the summer of 2024.

In December talks between the ministers had broken down. Countries were divided between those wanting to accept the European Commission’s proposals, which included fewer conditions before workers can be classified as employees, and those seeking a less restrictive regime for businesses.

The impasse was broken at a meeting in Luxembourg on Monday. While no member states voted against the plans, Germany, Spain, Greece, Estonia and Latvia balked at the text, two EU diplomats said.

However, in a sign of continuing division among member states, eight so-called “ambitious” countries, including Spain and the Netherlands, said the agreed position was “less ambitious and effective” than previous proposals by the Commission.

Their exclusion points to a lack of unanimity and possible division among countries, an EU official said in particular of the position being a “staffer”.

These people said the European Parliament has adopted a position that would classify gig workers as employees under fewer conditions than the Council’s position, prompting intense discussions for both institutions. “They will need to find a solution that works,” said a person with intimate knowledge of the discussions.

The definition of “employee” has huge implications for companies like Uber and Deliveroo. The more workers who register as employees rather than self-employed, the more these companies are liable to pay for employment benefits such as parental leave and social security.

As a result, the text has been one of the most heavily lobbied in Brussels in recent years, according to MEPs and diplomats. CEOs including Uber boss Dara Khosrowshahi and Markus Willig, the head of ride-hailing rival Bolt, warned in a letter to the Financial Times this month that the employment conditions would take away couriers’ independence.

“The text voted on today does not provide the necessary legal certainty to guarantee that the genuine self-employed will not be forced into employment,” Uber said on Monday.