Business

Workers succeed in battle against gig-economy firms

Recent decisions in favour of employees, from Spain to China

Updated 4 years ago · Published on 09 Dec 2021 11:11AM

Workers succeed in battle against gig-economy firms
British takeaway food delivery app Deliveroo pulled out of Spain in November, but other platforms have decided to adapt, or tried to get around the law.. – AFP pic, December 9, 2021

PARIS – A growing number of countries are taking on gig economy giants like Uber, Bolt and Deliveroo by giving their workers – who are routinely treated as freelancers – full employment rights.

With the European Union executive tabling new proposals today to clear up the grey area, here is a snapshot of recent decisions shaking up the sector.

Spain leads way

Spain was the first European Union country to give delivery workers full rights in August, recognising them as salaried staff with all relevant rights and protections, including sick leave and paid holidays.

The country’s left-wing government acted after the supreme court ruled on the issue. 

The British takeaway food delivery app Deliveroo pulled out of Spain in November, but other platforms have decided to adapt, or tried to get around the law.

Italy strikes deal

Italy struck a deal this month to improve conditions for riders for food delivery platforms.

Prosecutors in Milan initially began looking at working conditions for delivery riders following a spate of road accidents, and the probe was eventually extended throughout the country.

In February, prosecutors told Foodinho-Glovo, Uber Eats Italy, Just Eat Italy and Deliveroo Italy that their riders cannot be considered as freelancers but as employees who receive wages.

Under the deal reached with the delivery platforms – which makes no mention of riders’ legal status – they will have to spend millions improving conditions for their 20,000 riders.

Unions, however, are taking cases through the courts.

Netherlands: court ruling

A Dutch court ruled in September that Uber drivers in the Netherlands are effectively under an employment contract. Uber has appealed the ruling.

Belgium: spoke in Uber’s wheels

Deliveroo claimed victory yesterday after a Brussels labour court ruled that its riders are not employees. 

But at the end of November, an appeal court in the capital said a 2015 ban on private individuals offering taxi services also applies to apps like Uber. 

Uber’s UK U-turn

In March, following a ruling by Britain’s High Court, Uber agreed to give its UK drivers workers’ entitlements including holiday pay and a pension.

Its 70,000 drivers there will now earn at least the minimum wage when driving for the taxi app.

US: Biden overturns Trump gig

The Biden administration in May blocked a rule handed down under former US president Donald Trump that would have prevented gig workers from demanding a minimum wage or overtime.

The state of California voted in 2019 to recognise gig economy workers as employees but digital giants including Uber and Lyft refused to comply with the law.

Instead, they bankrolled a referendum that effectively overturned it. Under it, drivers and delivery riders remain independent contractors but are to be paid minimum wages and a contribution to healthcare and insurance.

France: Uber, Deliveroo under cosh

France’s appeal court ruled in March 2020 the contract between Uber and its 28,000 drivers in France is an employment contract.

Deliveroo and three former directors will appear in a Paris court next March charged with “not declaring a large number of jobs”.

Argentina, Brazil among nations in Latin America considering regulatory measures

Several parliaments in Latin America are weighing legislation to regulate the activities of the platforms, notably Argentina, Brazil, Chile and Colombia. However, nothing concrete has so far emerged.

China: Didi under pressure

In early December, the Chinese transport ministry called on China’s version of Uber, Didi, and other platforms to improve drivers’ wages, breaks and working conditions. – AFP, December 9, 2021

Related News

Business / 2y

Gig economy: the future of work is here and it's flexible

Malaysia / 2y

Exploited and unprotected: Life as a gig worker

Business / 3y

Operators won’t budge: Socso on obstacles in gig workers’ social security

Malaysia / 3y

Gig economy body to become reality soon: Zahid

Malaysia / 3y

[UPDATED] You defend graft, but ignore workers’ rights: Anwar swipes at rivals

Malaysia / 3y

Workers’ champion Balasubramaniam shares MTUC journey

Spotlight

Malaysia

Five fatal helicopter crash victims honoured in Sarawak state awards

Malaysia

No Malaysian is left behind; Budget 2027 puts people first - Anwar  

Malaysia

Panama hit by 6.4-magnitude earthquake

Malaysia

Haze blankets 33 areas with unhealthy air

Malaysia

Malaysia’s 2027 Budget is a steady one: people-oriented continuity rather than bold reform

Malaysia

Budget 2027: What is in it for me?

Malaysia

Budget 2027 steps up Sabah, Sarawak funding by RM2.2b amid push for development parity

Malaysia

Budget 2027: Maternity leave entitlement increased, minimum pension raised to RM1,350

You may be interested

Business

Oil slips on Trump’s Iran remarks, but supply risks and strong US dollar keep markets on edge

Business

Budget 2027 targets foreign e-commerce platforms, channels billions into local firms and startups

Business

Malaysia draws US$9.5b in orders for US$1.5b sukuk, cuts borrowing costs

Business

Budget 2027 channels RM270m to SMEs through crowdfunding, P2P financing