The European Union’s recent provisional agreement on a bill to extend employee benefits to gig workers at online companies like Uber and Deliveroo is being looked at as a landmark development in global workforce.
This legislation, as reported by Reuters, is set to be the first major piece of legislation in Europe that could reshape the future of the gig economy in profound ways. For one, it’s reported that the bill introduces a “presumption of employment” for gig workers, challenging the traditional notion of these workers being listed as “self-employed.”
This is expected to bring about a complete reclassification of how gig workers are defined in the EU, and that could add employee benefits for an estimated 5.5 million gig platform workers who may currently be misclassified. It’s reported that the reclassification of gig workers would extend labor and even social protection rights to millions of gig workers in Europe.
Another key aspect of the bill is focused on reducing the reliance of algorithmic decision-making among gig platforms. More specifically, the bill advocates for human oversight in important decisions related to gig workers, including when a user’s account is being suspended. This change is aimed at providing gig workers with more transparency in, for the most part, virtual work environments.
EU legislation of this size and impact is likely to set a global precedent, potentially inspiring similar reforms worldwide and influencing labor laws beyond European countries. Companies that rely heavily on gig workers are likely going to have to adjust their business models and employment practices in response to these new standards in the gig economy.
