to reclassify millions of freelancers as employees. Ride-hailing and food delivery companies would face increasing costs and a dent in demand.
That would be a seismic shift for companies which depend on gig workers. A study by consultancy Copenhagen Economics, published last month,up to 75,000 couriers across the European Union could leave the workforce if flexible employment is no longer an option. With fewer drivers, customers would have to wait longer for a ride or meal delivery. Alternatively, gig economy companies could pass on the extra employment costs, shrinking demand for their services.
- The proposed directive declares companies to be an employer if they supervise the performance of work through electronic means, restrict workers’ ability to choose their working hours or tasks, and prevent them from working for third parties. They also require companies to be more transparent on how they use algorithms to monitor and evaluate workers and to set tasks and fees. Employees can ask for compensation for breaches.
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