European Union member states rejected a tentative agreement to classify millions of people working in ride-hailing and food-delivery apps as employees.
The tentative agreement could potentially cost the gig-economy industry billions of euros a year.
As a result, platforms such as Uber Technologies Inc, Deliveroo Plc and others have been forced to grant full employee status to an estimated 5.5 million workers.
Over the next five years, Luxembourg’s new government announced its intention to allow Uber to operate if the taxi dispatch service provided drivers with social protection under labour law. This caused concern among Luxembourg’s traditional taxi drivers, but it was stated that Uber drivers are “private drivers in private cars who are self-employed,” said Daniel Tesch. “So they will have to pay for their own health and social security just like any other independent worker.”
The Commission has proposed a version of the regulation that would strengthen the protection of gig workers in 2021. The Commission estimates that, depending on the number of workers covered by the law at that time, the sector would have to pay an additional €4.5 billion a year.
Earlier this week, Uber, Bolt and Freenow agreed to raise the minimum wage they pay drivers in France ahead of new regulations.
