EU nations led by France have rejected a reform that proponents say would improve conditions for so-called "app workers" in the gig economy, a labour market that relies heavily on temporary staff.
The European Parliament and member states last week agreed a reform that could have been the world's first legislation covering conditions for platform workers.
The draft law said people working through apps – such as ride-hailing drivers and bicycle delivery riders – could be reclassified as employees and thus gain access to labour rights and social protection.
If a worker meets two out of five criteria set out in the legislation, it will be presumed they are an employee.
However France objected to the automatic reclassification for gig economy workers saying it would compromise the flexibility of being self-employed.
France, backed by the Czech Republic, Finland, Greece, Hungary, Ireland, Latvia, Lithuania and Sweden, said they could not support the agreed text.
Representing the EU's second biggest economy, France hit out at the agreement this week, claiming it was different to a draft text agreed by member states only in June this year.
🚨 #platformwork directive update 🚨
— Théo Bourgery-Gonse (@Theo_BGonse) December 20, 2023
Earlier on Wed, 🇫🇷 Labour Minister @olivierdussopt told the Senate he could not back the deal as struck in trilogues.
"This directive is very different from the Council mandate [...] and I cannot support it"
He has let the 🇪🇸 PCY know https://t.co/9P23e6rXGJ
Massive labour force
"When you move towards [rules] ... that would allow massive reclassifications, including self-employed workers who value their self-employed status, we cannot support it," French Labour Minister Olivier Dussopt said.
Spain – which currently holds the rotating EU presidency – reportedly opted not to hold a vote during a meeting of EU ambassadors on Friday because there was not enough support for the deal.
The text agreed last week will now have to be renegotiated with the European parliament.
Approval for EU legislation requires a qualified majority of 15 out of 27 EU nations, representing at least 65 percent of the bloc's population.
The EU's jobs and social rights commissioner, Nicolas Schmit, has said he is still hopeful that Belgium, which will hold the presidency from January, will succeed in getting approval.
"I have full confidence in the Belgian presidency to successfully complete this very important file," he said.
There are around 28 million gig workers dependent on online platforms in Europe, and the number is expected to rise to 43 million in 2025.
The EU parliament believes at least 5.5 million people could be wrongly classified as self-employed.
