EU Takes on the Gig Economy

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

The EU will challenge the gig economy today by proposing that up to 4.1 million people working for ride-hailing and food-delivery apps like Uber be classified as “employees” rather than as self-employed. The Commission proposal aims to provide gig workers with stronger labor protections but faces hurdles from companies claiming it would lead to massive job losses and harm workers who prefer to remain self-employed. The EU’s own analysis said it could cost the industry up to 4.5 billion euros a year. Even if the Commission’s proposal does become law in a few years, it’ll likely be up to the courts to decide, with both the EU and companies gearing up for legal battles.