Food delivery shares rise ahead of EU draft rules on gig workers -Breaking
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© Reuters. FILEPHOTO: An Just Eat delivery person rides his bike through Nice, France during the COVID-19 (coronavirus disease) epidemic in France. February 16, 2021. REUTERS/Eric GaillardAMSTERDAM (Reuters – Ride-sharing shares rebounded ahead of a European Commission proposal scheduled for Dec. 9. This will establish when couriers can be considered employees or independent contractors.
According to the Financial Times, Tuesday’s report said that this proposal has been in development for many years and will be made mandatory by companies rather than workers. They must show proof when delivery personnel are self-employed.
The spokesperson of the European Commission declined comment until Thursday’s publication.
Just Eat Takeaway.com in the Netherlands rose 6.3% in 1030 GMT. Germany’s Delivery Heroes rose 4.5 and Deliveroo, Britain, was up 1.9%. These gains reversed similar losses Monday. Uber shares ended at $38.49 on the United States.
Citi analyst said that Deliveroo was most exposed to the new rule, while Takeaway in Europe is already using an employment model. Delivery Hero and Uber are more successful in non-European countries.
Gig economy workers are currently considered to be self-employed in Europe. This allows them to avoid the obligations of companies such as not paying minimum wages or sick leave, or holiday pay.
Court decisions made in Spain, Britain, Italy, and the Netherlands in the last two years, however, have challenged this.
According to the FT, it would mean the reclassification as employees of 4.1million contractors, resulting in an additional 484m euros (545 million dollars) annually and entitle them to the “rights, protections, and benefits” that other workers under European law.
Copenhagen Economics, commissioned last month by an industry group to study platform companies, argued in a report that 75,000 jobs could be lost by the European new rules.
($1 = 0.8875 euros)
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