Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

EU lawmakers, countries reach deal on gig workers' rights at second attempt

Published 02/08/2024, 01:47 PM
Updated 02/08/2024, 03:47 PM
© Reuters. FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, July 14, 2021. REUTERS/Yves Herman//File Photo

By Foo Yun Chee

BRUSSELS (Reuters) - EU lawmakers and governments struck a watered-down deal on Thursday on the rights of workers at Uber (NYSE:UBER), Deliveroo (OTC:DROOF) and other online companies.

The two sides had reached a provisional agreement in December but subsequent opposition from France, Ireland, Greece, Lithuania and other countries torpedoed the deal, forcing legislators back to the negotiating table.

The preliminary deal clinched on Thursday between EU lawmakers and Belgium, current holder of the EU rotating presidency, does away with a set of criteria proposed by the European Commission to determine whether an online company is an employer, following lobbying from the companies and criticism from some countries.

Instead national law, collective agreements and case law will dictate whether a worker is an employee, in effect maintaining the status quo.

Governments will also define the employment criteria for online workers that can be challenged by companies. The burden of proof will also be on companies to show that their gig workers are not employees.

The deal will have to be endorsed by representatives of the 27 EU governments in the coming days, followed by a formal vote on both sides before it can become law.

The deal also stipulates that important decisions such as firings should not be taken by automated systems or an algorithm.

"We made sure that up to 40 million platform workers in Europe have access to fair labour conditions," said lawmaker Elisabetta Gualmini who is steering the file through the legislative assembly.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Lobbying group Delivery Platforms Europe, whose members include Uber Eats, Deliveroo, Delivery Hero, Bolt and Wolt, said more could be done for companies.

"Today's provisional agreement is a missed opportunity to create clear rules to the benefit of platform workers and the sector as a whole. Getting it right is more important than getting a deal and we hope member states will prioritize getting it right," it said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.