The European Parliament and EU member states reached a historic agreement on Wednesday to enhance conditions for those working through apps, such as ride-hailing drivers.
Historic Agreement Reached
Once officially adopted, this law will be the world’s first to cover the gig economy and is part of the EU’s efforts to clarify the status of millions of workers.
Reclassification of Workers
Under the new law, many platform workers in Europe can be reclassified as employees and thus gain labor rights and social protections, according to the Parliament.
The Five Criteria
If a worker meets two out of the five criteria defined in the legislation, they will be presumed to be an employee. The five criteria include: limits on the amount of pay, remote supervision of their work, control over the tasks they perform, restrictions on their working hours and conditions, and constraints on their appearance or conduct.
Legal Assurance
EU member states may expand the list. Workers can also approach EU countries to push for the list’s expansion.
The lobbying group “European Platform Delivery,” which represents Uber Eats, Deliveroo, and others, welcomed the proposed legislation.
The text will become law once it is officially adopted by member states and Parliament.
An Uber spokesperson welcomed the efforts to improve working conditions and expressed hope that the text would provide “legal clarity.”
The European Commissioner for Jobs and Social Rights, Nicolas Schmitt, praised the agreement, stating it ensures labor and social rights for platform workers without sacrificing the flexibility of business models.
The rules also stipulate that platform workers must have access to information about how app algorithms work and how their behavior affects the decisions made by the automated system.
The Parliament added that no platform would be able to dismiss workers or suspend their accounts without human oversight.
There are also stricter rules concerning personal data, prohibiting platforms from processing data including personal beliefs and private exchanges with colleagues.
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