Food delivery shares surge in anticipation of EU rules on gig workers
Category: #business  By Pranali Mehta  Date: 2021-12-08
  • share
  • Twitter
  • Facebook
  • LinkedIn
Food delivery shares surge in anticipation of EU rules on gig workers

Shares in food delivery and ride-sharing companies bounced back on 7th December, just days prior to the launch of a European Commission proposal that will define when couriers should be considered independent contractors, and when they should be regarded as employees of online platforms.

Sources have revealed that the proposal, which had been in the pipeline for years, will definitely place the burden of proof on companies rather than employees, to indicate the self-employment status of delivery people.

In anticipation of the decision, shares in Dutch multinational company, Just Eat Takeaway.com jumped by 6.3%; the U.K.’s Deliveroo rose by 1.9%, while Germany's Delivery Hero saw a 4.5% increase. This surge in prices reversed the substantial declines observed on 6th December.

Currently, gig workers in Europe are typically classified as self-employed, which relieves companies of the obligations to provide them sick leaves, holiday pay, and a minimum wage. However, court rulings in the Netherlands, Italy, Britain, and Spain have challenged this position in the past two years.

The new decision could reclassify 4.1 million contractors as employees, which means that companies will have to pay an additional USD 545 million every year.

However, gig economy workers will be classified as employees only if online platforms can determine their pay, supervise work via electronic means, prevent them from working for third parties, set conduct and appearance standards, and restrict the ability to choose the number of working hours or tasks.

The proposal, if accepted, will entitle these workers to the same protections & rights as other staff under European law.

Notably, EU countries would generate an additional USD 1.8 billion to USD 4.5 billion in tax contributions from reclassified workers. However, sources have also revealed that the new European rules might cause one out of two drivers to loose employment, which is nearly 140,000 people across the region.

Source Credits –

https://money.usnews.com/investing/news/articles/2021-12-07/food-delivery-shares-rise-ahead-of-eu-draft-rules-on-gig-workers

  • share
  • Twitter
  • Facebook
  • LinkedIn

About Author

Pranali Mehta

Pranali Mehta    

Pranali Mehta boasts of over three years of experience as a content writer. Having completed her graduation in chemical engineering, she worked as safety & environment associate in a chemical company for a year. Harnessing her passion for writing however, Pranali deci...

Read More >>

More News By Pranali Mehta

WhatsApp to soon allow iOS users to hide online status from everyone
WhatsApp to soon allow iOS users to hide online status from everyone
By Pranali Mehta

WhatsApp, the meta-owned messaging and video calling app, is reportedly working on a feature that will offer iOS users the ability to hide their online status from everyone. As per credible source, the feature is expected to come in its update as it ...

Petrofac collabs with Hitachi over offshore joint grid integration
Petrofac collabs with Hitachi over offshore joint grid integration
By Pranali Mehta

Petrofac, an international energy services company, and Hitachi Energy have recently collaborated to provide a joint grid integration and linked infrastructure for supporting the fast-growing offshore wind market. As per sources, this collaboratio...

Street Lighting Control System Market Size, Share to Generate Lucrative Revenues By 2028
Street Lighting Control System Market Size, Share to Generate Lucrative Revenues By 2028
By Pranali Mehta

The research report on Street Lighting Control System market Added by Market Study Report proposes a comprehensive study on the recent industry trends. In addition, the report presents a detailed abstract of the growth statistics, revenue estimation,...