Portugal has taken a significant step towards requiring digital platforms like Uber and Glovo to employ some of their drivers as staff with formal contracts and benefits. This move positions Portugal among the growing list of European nations addressing the gig economy’s challenges.
Key Takeaways
- Portugal’s government has approved a bill to grant gig-economy workers employee status.
- The bill still requires final approval from parliament but is expected to pass.
- The legislation aims to provide gig workers with formal contracts and benefits.
- Similar measures have been taken in the UK and Spain.
- The European Commission is also exploring EU-wide solutions for gig workers.
Legislative Progress
On October 22, Portugal’s government approved a bill that mandates digital platforms to employ some of their drivers as staff. This bill, which still needs parliamentary approval, aims to provide thousands of gig-economy workers with the rights and benefits of formal employment. Given the support from other left-wing parties, the bill is likely to pass.
Global Context
Portugal’s move follows similar actions in other European countries. Earlier this year, the UK’s Supreme Court ruled that Uber drivers are entitled to workers’ rights. Spain also mandated food delivery companies to employ their couriers as staff within three months. These measures reflect a growing trend in Europe to improve working conditions for gig-economy workers.
Government’s Stance
Portugal’s Labor Minister, Ana Mendes Godinho, emphasized that the bill assumes a worker of a digital platform operator is staff with a formal contract whenever there is evidence of a relationship between the platform, the worker, and the customers. "Fighting precarious employment is one of our top priorities," Godinho stated.
Transparency and Accountability
The bill also requires digital platforms to transparently inform the Work Conditions Authority, workers, and their representatives about the criteria of algorithms and artificial intelligence mechanisms used. This measure aims to ensure fair treatment and accountability in the gig economy.
European Commission’s Role
Under pressure to find an EU-wide solution, the European Commission launched a public consultation earlier this year to determine the legal employment status of couriers and improve their working conditions. This initiative highlights the broader European effort to address the challenges faced by gig-economy workers.
Impact of the COVID-19 Pandemic
The gig economy saw significant growth during the COVID-19 pandemic, as people worldwide needed goods and food delivered to their homes. However, many digital platform workers have reported exploitation, including low wages, long working hours, and inadequate social and health protections.
Conclusion
Portugal’s legislative move to grant gig-economy workers employee status marks a significant step towards improving working conditions in the digital platform sector. As the bill awaits final approval, it reflects a broader European trend to ensure fair treatment and benefits for gig workers.
