© Reuters. FILE PHOTO: A Just Eat delivery man rides his bike in Nice amid the coronavirus disease (COVID-19) outbreak in France, February 16, 2021. REUTERS / Eric Gaillard
AMSTERDAM (Reuters) – Shares in ridesharing and food delivery services rebounded Tuesday before a December 9 proposal was expected from the European Commission laying down when couriers should be considered employees and when should be considered independent contractors.
The Financial Times reported Tuesday that the proposal, which has been under development for years, is expected to burden businesses, not workers, with proving when their deliverers are self-employed.
A spokesman for the European Commission rejected this until it was published on Thursday.
Stocks of Dutch Just Eat Takeaway.com rose 6.3% to 1030 GMT, German Delivery Hero rose 4.5 and UK Deliveroo rose 1.9%, reversing similar declines on Monday. Uber stock (NYSE 🙂 closed at $ 38.49 in the US.
Citi analysts said in a note that Deliveroo will be hardest hit by the proposed rule change, while bigger European rival Takeaway is already using an employment model. Delivery Hero and Uber have larger offices in non-European markets.
Currently, gig economy workers in Europe are generally considered self-employed, which releases companies from the obligation to pay the minimum wage or to grant sick pay or vacation pay.
However, court rulings in the Netherlands, UK, Italy and Spain over the past two years have called this into question.
Citing the unpublished proposal, the FT said it could mean reclassifying 4.1 million contractors as workers, resulting in an additional annual wage of 484 million euros ($ 545 million) and the same "rights and protections." “Like other employees under European law.
A study by Copenhagen Economics published last month, commissioned by an industry group for the platform companies, argued that the new European rules could result in the loss of 75,000 jobs.
($ 1 = 0.8875 euros)
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