EU backs rules to improve app workers’ conditions

The European Parliament and EU member states reached an agreement on Wednesday to enhance working conditions for app-based workers, including those in the ride-hailing sector.

Once officially approved, this legislation will stand as a global precedent for addressing labor issues within the gig economy, aligning with the European Union’s initiative to bring clarity to the status of millions of workers.

The primary objective of the law is to establish uniform rules across all 27 EU member states, aiming to prevent disparate court decisions related to gig workers’ rights. Notably, companies like Uber, which previously evaded regulations on minimum wage and holiday pay by classifying workers as independent contractors, may face reclassification under the new law.

The legislation is expected to impact around 28 million gig workers currently dependent on online platforms in Europe, with projections indicating a rise to 43 million in 2025. The key provisions of the agreement include the reclassification of platform workers as employees, granting them access to essential labor and social protection rights.

MEP Elisabetta Gualmini, the rapporteur leading the initiative in parliament, hailed the agreement as a “revolutionary framework” for digital platform workers, emphasizing the introduction of transparency and accountability for algorithms, improved rights for vulnerable workers, and fair competition for platforms.

The legislation introduces a set of criteria, with workers meeting two out of five presumed to be employees. These criteria encompass restrictions on remuneration, remote supervision, task control, hour restrictions, and control over conditions or appearance. Member states have the option to expand this list, providing workers with the opportunity to lobby for additional criteria.

Delivery Platform Europe, representing major platforms like Uber Eats and Deliveroo, had criticized the draft legislation. However, the text will become law upon formal adoption by member states and the parliament.

Uber expressed support for efforts to enhance working conditions, emphasizing the importance of legal clarity. The EU’s jobs and social rights commissioner, Nicolas Schmit, welcomed the agreement, highlighting that the rules strike a balance between ensuring social and labor rights for platform workers without compromising the flexibility of the platform business model.

The legislation also addresses concerns related to algorithmic transparency, stating that platform workers should have access to information on how app algorithms operate. Additionally, platforms are prohibited from processing personal data that includes beliefs and private exchanges with colleagues. The parliament emphasized the necessity of human oversight in decisions related to worker terminations or account suspensions, establishing stricter rules to protect personal data.