December 14, 2023 Following extensive negotiations spanning two years, the European Council and Parliament have arrived at a tentative agreement to reclassify numerous gig economy workers as employees.

This significant shift primarily impacts individuals who rely on apps for activities such as food delivery or ride-hailing services. Presently, a vast majority of the 28 million platform workers in the EU are classified as self-employed. However, it’s estimated that around 5.5 million of these workers might be incorrectly categorized.

Under the new directive, specific criteria will be used to ascertain a worker’s employment status, and it will also impose restrictions on the algorithmic management of workers. A worker will be deemed an employee if they fulfill at least two out of five specified conditions. These conditions include limits on earnings, oversight of performance, allocation of tasks, control over working conditions, and the level of autonomy in executing work.

Furthermore, the agreement stipulates that decisions regarding worker dismissals must involve human judgment and places limitations on using personal data for profiling purposes or predicting union activities. The European Trade Union Confederation has expressed approval of this agreement, emphasizing its role in tackling the issue of incorrect self-employment classification and promoting equitable labor rights.

Source: The Register