The European Union Is Cracking Down On Businesses That Falsely Declare Workers As Self-Employed

In a recent press release, the EU announced their proposed new directive that would reclassify millions of gig economy workers as employees with full benefits. Some businesses are opposed to the new rules, which they say will harm their operations. Meanwhile, many gig economy workers welcome the proposal, which would provide them with benefits like minimum wage and paid vacation.

It is estimated that of the 28 million gig workers in Europe, 5 million should not be categorized as “self-employed” because they work sufficient hours with enough oversight to merit benefits. The European Commission indicated it will conduct an investigation to determine which of these workers should be signed on as employees of companies and receive these benefits. Once the legislation has been negotiated and amended, members of the EU will have two years to put it into domestic law.

Read the full story on PBS here.

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Alex Steeno

Alex Steeno

Senior industry analyst, adviser of multiple hypergrowth agencies, SaaS, and tech-enabled service platforms, Alex Steeno regularly contributes insights related to industry trends, growth marketing, and management consulting.

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