The term “gig economy” has evolved over the past few years to reflect the global change in people’s work. Some see it as a liberating ability to “moonlight” and make some extra money; others view it as a euphemism for the exploitation of people who should be granted full employment rights.
The European Union seems to be taking the latter view with its new rules to crack down on businesses that falsely declare workers as self-employed when they should have full employment benefits. It is estimated that of the 28 million gig workers in Europe, 5 million should not be categorized as “self-employed” but work sufficient hours with enough oversight to merit benefits.
In a press release, the European Commission said that many workers are entitled to a minimum wage, the right to collective bargaining, insurance against injury, paid leave, sick leave, paid vacation, parental leave, unemployment insurance, and pension. The Commission indicated it would conduct an investigation to determine which of these workers should be signed on as employees of companies and receive these benefits.
This directive is expected to transform 1.7 million to 4 million registered self-employed workers into employees with full benefits. This is determined by their ability to meet the criteria based on pay, supervision, and working hours.
This may be good news for Europeans who are driving an Uber at least 20 hours a week to supplement another low-wage job so they can support their families, but large...
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