The European Commission announced draft rules on Thursday to give many drivers for online firms such as Uber and Deliveroo employee benefits, a move labor unions say is overdue but some companies argue will lead to job losses.
The proposal, a global first that needs to be thrashed out with EU countries and lawmakers before it can become law, marks the latest attempt by the European Union to regulate tech companies and ensure a level playing field between online and traditional firms, reported Reuters.
“No one is trying to kill, stop or hinder the development of the platform economy,” Jobs and Social Rights Commissioner Nicholas Schmit said at a news conference introducing the proposals.
However, the rules were needed to ensure that new business models uphold labour laws, he said.
The EU executive said the draft rules could apply to around 4.1 million of the 28 million workers at online platform companies across the 27-country bloc.
Internet firms that set pay and standards of conduct for their couriers would have to classify them as employees entitled to a minimum wage, paid holidays and pension rights, according to the draft rules.
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