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Europe – EU approves new rules to improve gig economy workers’ rights

17 April 2019

The EU Parliament approved new legislation yesterday, granting new rights for gig economy workers.

The directive grants a set of minimum rights for those in casual or short-term employment, on-demand workers, intermittent workers, voucher-based workers, platform workers, zero-hours contract workers as well as paid trainees and apprentices if they work a minimum of three hours per week and 12 hours per four weeks on average. However, self-employed workers will be excluded from the new rules.

The new law aims to bring increased transparency to the gig economy.  All new workers must receive essential information about their employment and working conditions from day one.

EU countries now have three years to bring their national legislation in line with the new directive.

Enrique Calvet Chambon, Member of European Parliament, commented, “This directive is the first big step towards implementation of the European Pillar of Social Rights, affecting all EU workers. All workers who have been in limbo will now be granted minimum rights thanks to this directive, and the European Court of Justice rulings, from now on no employer will be able to abuse the flexibility in the labour market.”

The specific set of rights to cover new forms of employment includes:

  • Workers with on-demand contracts or similar forms of employment should benefit from a minimum level of predictability such as predetermined reference hours and reference days. They should also be able to refuse, without consequences, an assignment outside predetermined hours or be compensated if the assignment was not cancelled in time.
  • Member states shall adopt measures to prevent abusive practices, such as limits to the use and duration of the contract.
  • The employer should not prohibit, penalise or hinder workers from taking jobs with other companies if this falls outside the work schedule established with that employer.

The BBC reports that the UK will only be obliged to implement the law if it is still a member state of the EU three years after the new directive enters into force. However, the UK has already introduced similar workplace legislation to take effect from April 2020.

Fiona Coombe, Director of Legal and Regulatory Research at SIA said “this Directive will provide a set of rights for the most vulnerable casual workers who are not generally covered by employment legislation. The UK has acted ahead of the EU to keep in step with workers’ rights within the European Union regardless of whether Brexit happens or not.”

Julia Kermode, Chief Executive of the Freelancer & Contractor Services Association, commented, “We welcome the move as it should end abusive practices and exploitation of vulnerable workers.”

“UK policymakers are already in the process of making similar legislative changes as a result of the Taylor Review, so our gig economy workers will be protected whatever happens with Brexit.  It is reassuring that the changes will not apply to self-employed people who are genuinely working for themselves as the majority make a positive choice in how they work and do not want or need such protections,” Kermode said.

In its announcement, the European Parliament singled out both Uber and Deliveroo. 

A spokesperson for Deliveroo told The Irish Times that its riders do not fall under the directive as they are genuinely self-employed.

“Deliveroo wants to give riders more security, but in a way that is compatible with the flexible working that we know riders value. Riders are self-employed and, as the European Parliament says, riders are therefore out of scope of this directive,” the spokesperson said.