Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

EU Commission tries to rally support for political deal on gig workers' rights

Published 15/02/2024, 19:02
Updated 15/02/2024, 23:15
© Reuters. FILE PHOTO: A delivery worker with a backpack of Uber Eats rides a bike in Nice, France, October 25, 2022.  REUTERS/Eric Gaillard/File Photo

By Foo Yun Chee

BRUSSELS (Reuters) - The European Commission is trying to rally support from EU countries to endorse a watered-down political agreement on the rights of workers at Uber (NYSE:UBER), Deliveroo and other online companies, according to a document seen by Reuters on Thursday.

The move by the EU, which proposed the draft rules in 2021, came ahead of a meeting of ambassadors from the 27 EU countries on Friday to vote on the provisional deal clinched by Belgium, current holder of the EU presidency, with EU lawmakers last week.

The biggest stumbling block could be France, which still has questions about the deal, while Germany will likely abstain from the voting and uncertainty about Spain and Italy's position could torpedo the agreement, people with direct knowledge of the matter said.

Failure to pass the legislation would leave an estimated 40 million gig workers in Europe and also the online platform companies to the mercy of a patchwork of rules and legal uncertainty.

After pushback from the companies and some countries, the provisional agreement, however, is much weaker than the Commission's proposal as it scraps a set of criteria to determine whether an online company is an employer.

Instead, governments will specify the employment criteria for online workers that can be challenged by online companies or authorities following national court rulings on the subject. This in effect maintains the status quo across Europe.

The onus will be on companies to show that gig workers are not employees.

At a meeting of EU ambassadors on Wednesday, the Commission sought to help governments interpret the notion of an effective legal presumption of employment agreed last week, saying it was up to countries to choose the method.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

This and other elements would "give (a) margin of manoeuvre for member states to define the mechanism of the presumption," it said in a document seen by Reuters.

The document also said the Commission intends to set up a transposition group to help EU countries implement the new rule.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.