London Daily

Focus on the big picture.
Tuesday, Oct 20, 2026

E.U. Plan to Boost Gig Economy Workers is Latest Blow to Apps

E.U. Plan to Boost Gig Economy Workers is Latest Blow to Apps

A European Union plan to improve conditions for the growing number of gig economy workers could mean millions more of them are classified as employees entitled to benefits, the latest setback for digital platforms that rely on independent contractors to deliver food and offer rides.
The draft rules outlined Thursday aim to clarify the labor status of people employed by app-based companies like ride-hailing service Uber and food delivery business Deliveroo and would add oversight for the algorithms they use to manage workers.

Gig economy workers and platforms have fallen between the cracks of existing employment legislation, and the measures being considered by the 27-nation bloc, which would take years to come into force, are aimed at clearing up those gray areas.

App-based gig work platforms have boomed in the digital economy, especially during the COVID-19 pandemic when demand for food delivery services mushroomed. The apps provide short-term work for millions of people but their rampant growth also has upended traditional labor and business models, resulting in showdowns between companies and regulators worldwide. Gig work’s flexibility is a selling point for many, but workers also complain that they end up making less than minimum wage after their expenses are accounted for.

Under the E.U. rules, which still need approval by the European Parliament, a platform that meets at least two criteria will be deemed an “employer” and people working for that company will be reclassified as “workers” with the right to a minimum wage, paid vacation, unemployment and sickness benefits, pensions and other benefits.

The criteria include whether an app decides pay levels; electronically supervises work performance; restricts a worker’s freedom to choose work hours, accept jobs or use subcontractors; dictates a worker’s appearance and conduct with customers; or limits the possibility for workers to build their own client bases or work for anyone else.

Uber says it’s committed to improving work conditions but worries about the EU proposal “putting thousands of jobs at risk, crippling small businesses in the wake of the pandemic and damaging vital services that consumers across Europe rely on.”

“Any E.U.-wide rules should allow drivers and couriers to retain the flexibility we know they value most, while allowing platforms to introduce more protections and benefits,” a statement from the ride-hailing service said.

Amsterdam-based Just Eat Takeaway said it “welcomes and fully supports” the proposals and hopes they will provide companies across Europe with “clarity and a level playing field.” Unlike other food delivery platforms, the company’s riders are employed as staff, which it says “proves that providing flexibility doesn’t have to come at the expense of workers’ rights.”

The European Commission, the E.U.’s executive branch, estimates some 28 million people on the continent are self-employed on digital platforms, rising to 43 million by 2025, but predicts as many as 4.1 million could be reclassified as employees under the new rules. The bloc has taken a leading global role in cracking down on tech companies to ensure everything from workers rights to online safety.

Platforms can challenge the classification, but the burden will be on them to prove they are not employers, the commission said.

“No one is trying to kill, to stop or to hamper this growth of the platform economy,” E.U. Jobs and Social Rights Commissioner Nicolas Schmit said at a press briefing in Brussels. But “it comes down to ensuring that these jobs are quality jobs…We don’t want this new economy just giving low quality or precarious jobs.”

The proposed E.U. rules are another blow for gig economy companies in Europe. New laws or recent court rulings in Spain, the Netherlands and Britain require food delivery riders and ride-service drivers to be given employee status rather than classified as self-employed freelancers.

There have been more than 100 court decisions across Europe on the issue, with most judges ruling that independent contractors are employees—something the commission took into account as it drafted its directive.

In contrast, Uber and other app-based services in the U.S. avoided an attempt in California to classify workers as employees, though the battle continues in the courts.

The European Commission also wants to force gig work platforms to be more transparent about the algorithms used to manage workers so they can better understand how jobs are assigned and pay is set. People should oversee the algorithms and workers should be able to appeal any automated decisions, it said.
Newsletter

Related Articles

0:00
0:00
Close
British Government Reallocates Twenty-Five Per Cent of International Climate Finance to Global Biodiversity Projects
Initial British Carbon Border Taxes Set to Undercut Parallel European Union Tariffs on Industrial Imports
Whitehall Prepares National Zero-Interest Loan Initiative to Accelerate Domestic Heat Pump and Solar Adoption
European Union Offers British Automakers Access to Hybrid Vehicle Trade Protections Subject to Strict Regulatory Alignment
British Probation Officers Threaten Widespread Industrial Action After Rejecting Five Per Cent Government Pay Offer
Microsoft Abandons Major British Artificial Intelligence Data Centre Citing Severe National Grid Power Constraints
United Kingdom Inflation Accelerates to Three Point Four Per Cent Ahead of Chancellor John Healey's Inaugural Autumn Budget
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
Influential Think Tank Urges Rejoining European Union to Navigate Geopolitical Crises
Government Review Recommends Slashing Benefits to Fund Youth Employment Initiatives
Senior Minister Shabana Mahmood Seeks New Law Enforcement Pact With European Union
Airbus Executive Warns Britain Risks Losing Crucial Role in European Space Industry
Exorbitant Electricity Costs Push British Steelmakers to Worst Competitive Position in Three Years
British Food and Beverage Exports to European Union Collapse by Over a Third Since Brexit
Up to Twenty English Maternity Units Face Impending Closure Due to Safety and Staffing Crises
Government Declares Severe Drought Across Southern England Following Record Dry Spell
Corporate Profit Warnings Reach Two-Year High Amid Middle East Conflict and Rising Costs
International Monetary Fund Warns Chancellor John Healey Against Proposed Bank Tax Raid
Northern Ireland Secures Favorable Agricultural Export Agreement with European Union
Scottish Government Approves Major Offshore Floating Wind Farm Near Aberdeenshire
High Speed Two Rail Project Faces Three Billion Pound Cost Escalation on Initial Phase
National Health Service Warns of Winter Capacity Crisis Across English Hospitals
Tata Steel Confirms Two Thousand Job Cuts at Port Talbot to Fund Green Transition
Global Microchip Developer Announces Three Billion Pound Semiconductor Plant in Cambridge
United Kingdom Artificial Intelligence Safety Institute Proposes Mandatory Licensing for Generative Models
United Kingdom Commits Additional Long-Range Weapons and Air Defenses to Ukraine
British Chancellor Overhauls Infrastructure Financing to Bypass Borrowing Constraints
Bank of England Holds Benchmark Interest Rate at Four Point Five Percent
First Minister Rhun ap Iorwerth Confirms Constitutional Discussions Over Welsh Independence During Initial Bilateral Call with Prime Minister
Labour Party Instructs Local Council Groups to Sever Power-Sharing Accords with Green Party Over New Controversial Policy Positions
Institute for Fiscal Studies Warns of Thirty-Five Billion Pound Fiscal Gap Ahead of Chancellor John Healey Upcoming Autumn Budget
House of Lords Backs Landmark Legislative Amendment to Decriminalize Abortion Across England and Wales
United Kingdom Defence Secretary Wes Streeting Travels to Pentagon for High-Level Strategic Talks Amid Escalating Tensions Over Ukraine and United States Policy Shifts
Bank of England and International Monetary Fund Officials Issue Urgent Warnings Regarding Potential Artificial Intelligence Financial Market Shocks
Reform UK Faces Severe Political Fallout and Scrutiny After Undercover Media Investigations Reveal Systemic Racism Among Candidates
Former Democratic Unionist Party Leader Jeffrey Donaldson Sentenced to Fifteen Years in Prison Following Landmark Child Sexual Abuse Trial
House of Lords Votes to Amend Schools Bill Implementing Comprehensive Social Media Ban for Children Under Sixteen Years of Age
International Monetary Fund Upgrades United Kingdom Growth Forecast for Two Thousand Twenty-Six While Warning of Energy-Driven Inflation Pressures
Competition and Markets Authority Launches Formal Inquiry Into Corporate Artificial Intelligence Partnerships
Automotive Industry Leaders Urge Westminster to Accelerate Electric Vehicle Charging Infrastructure Rollout
Home Office Expands Digital Border Security Framework With Mandatory Electronic Travel Authorizations Across United Kingdom
Northern Ireland Executive Reaches Final Consensus on Public Sector Pay Reform and Budget Allocations
Welsh First Minister Secures Additional Funding for Rural Agricultural Transition and Sustainable Farming Schemes
Scottish Government Unveils Accelerated Regional Infrastructure Strategy to Boost Clean Energy Manufacturing
National Health Service England Launches Emergency Recruitment Drive to Alleviate Severe Acute Care Winter Backlogs
Bank of England Monetary Policy Committee Signals Cautious Approach to Interest Rate Reductions Amid Persistent Wage Growth
British Government Finalizes Emergency Energy Support Package to Protect Households From Winter Price Surges
Russell Brand Trial Begins at Southwark Crown Court
UK Parliament to Debate Climate Risks and Council Tax Following Public Petitions
×