In a bid to improve working conditions for people who deliver food and offer rides through smartphone apps, the European Union gave provisional approval to new rules for gig economy workers
LONDON — In a bid to improve working conditions for people who deliver food and offer rides through smartphone apps, the European Union gave provisional approval Wednesday to rules that determine who should get the benefits of full-time employees and restrict the way online platforms use algorithms to manage their workers.
The European Parliament and the EU's 27 member countries agreed on a platform worker directive that has been years in the making. It aims to boost protections and benefits for the growing number of gig economy workers, while raising accountability and transparency for apps that rely on independent contractors.
Gig economy workers and platforms have fallen between the cracks of existing employment legislation, so the directive is designed to clear up those gray areas. It still needs to be ratified by lawmakers and member states, which will then have two years to transpose it into their local laws.
The new rules “ensure platform workers, such as drivers and riders, receive the social and labor rights they are entitled to, without sacrificing the flexibility of the platform business model,” said Nicolas Schmit, the bloc's executive commissioner for jobs and social rights.
The negotiators say the rules will help clear up employment status of as many as 5.5 million people who have been wrongly classified as gig workers but are actually employees entitled to benefits.
A platform that meets at least two criteria will be deemed an “employer” and people working for that company will be reclassified as “workers” with the
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