Many staffing companies, AOR/EORs and platforms may need to start planning changes to their commercial models soon
Following a vote in the European Parliament on 2 February, a new European Union directive seems likely to be adopted in the next year or so. Under the current draft of the directive many self-employed contractors and gig workers in Europe engaged via staffing companies and employers-of-record (EOR)/agents-of-record (AOR), as well as digital platforms (the primary target of the directive), will have to be engaged as employees unless they can be engaged on very obviously business-to-business terms such as being paid a fixed price for defined deliverables.
In addition, various new transparency requirements will be introduced in relation to how technology is used in the recruitment process.
Individual Member States will have two years from the adoption of the directive at EU level to implement the directive into national law. Notwithstanding lobbying efforts against it by many platforms this adoption may well take place in early 2024. Many national governments across the EU are supportive of the principles of the directive and seem likely to move fast to implement the directive locally. Some commentators feel that aspects of the directive have not been properly thought through and are unworkable, but there does seem to be momentum behind it.
Implementation of this directive will, if and when it happens, force many staffing companies, AOR/EORs...
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