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A driver uses the Uber app to drop off a passenger in London.
Chris J. Ratcliffe | Bloomberg via Getty Images
Legislators in Europe have proposed tough new rules for gig economy companies such as Uber and Amazon-backed Deliveroo.
The proposals — published Thursday by the European Commission, the executive arm of the EU — are a major step toward requiring gig economy companies to classify drivers, couriers, cleaners, fitness coaches, masseuses and other workers who use apps and online platforms to find work as employees.
Employee status entitles workers to a minimum wage, holiday pay, unemployment and health benefits, and other legal protections depending on the country where they worked.
The proposals, which have been welcomed by labor unions, could affect an estimated 4.1 million gig economy workers across Europe. They have to go through several legislative steps before they become law.
Gig economy companies have long classified their workers as independent contractors, allowing them to minimize their expenditures and constrain legal liabilities.
Working for these companies appeals to those who don’t want to get a permanent 9 to 5 job and the platforms have made things like moving around and ordering food easier for consumers.
But the Covid-19 pandemic has showed how fragile these platforms can be. Work quickly dried up for Uber drivers during lockdowns, forcing many of them to find new jobs elsewhere, often with better protections in place.
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