EU States reach compromise on ‘gig economy’ worker regulations
European Union reaches consensus on rules for regulating gig economy workers, marking significant step forward in addressing employment classification issues
After weeks of intense negotiations, European Union member states have finally reached a consensus on rules aimed at regulating workers in the gig economy. The agreement, approved during a meeting of EU employment ministers in Brussels on Monday, marks a significant step forward in addressing the contentious issue of employment classification for app-based workers.
The Platform Work Directive has been a subject of debate since its inception in 2021. The primary objective of the directive was to establish uniform regulations across the EU, to enhance working conditions for individuals employed in the gig economy sector.
Belgium, currently holding the rotating EU presidency, announced the breakthrough on Monday, stating, “Better working conditions for those delivering your meal at home! Ministers just approved the compromise text on the Platform Work Directive.”
Initially, the directive proposed a set of criteria under which gig workers would be classified as employees, thereby granting them access to various benefits such as sick pay. However, disagreements among member states led to revisions, with the final text allowing each country the discretion to determine worker classification without a formal list of criteria.
Despite the compromise, some member states remained dissatisfied with the outcome. France and Germany, supported by Estonia and Greece, had previously blocked the agreement, citing concerns over its effectiveness. However, during Monday’s meeting, the majority of member states rallied behind the revised text, signaling a collective willingness to move forward with the proposed regulations.
Nevertheless, not all stakeholders are pleased with the outcome. Move EU, a European association representing ride-hailing platforms like Uber and Bolt, expressed disappointment with the directive. Aurelien Pozzana, chair of Move EU, stated, “This text, though an improvement from previous versions, fails to achieve a harmonized approach across the EU, creating even more legal uncertainty for ride-hailing drivers.”
Uber, one of the major players in the gig economy, called on EU member states to enact national laws to provide adequate protections for platform workers. A spokesperson for the company remarked, “EU lawmakers have voted to maintain the status quo today, with platform worker status continuing to be decided country-to-country and court-to-court. Uber now calls on EU countries to introduce national laws that give platform workers the protections they deserve while maintaining the independence they prefer.”
The approval of the Platform Work Directive represents a significant milestone in the ongoing efforts to regulate the gig economy within the EU. However, with diverging opinions among member states and industry stakeholders, the full implications of the directive remain to be seen as individual countries navigate the implementation process.
Source: AFP
