EU deal to force Uber, Deliveroo to reclassify some drivers as employees

European Union negotiators backed a deal to potentially reclassify millions of people working for ride-hailing and food-delivery apps as employees in a set of rules that could cost the industry billions of euros each year.

The provisional deal could require platforms to give full status to the estimated 5.5 million workers who meet at least two out of five conditions that indicate their relationship with the apps fits that of an employee rather than someone who’s self employed, the EU said in a statement on Wednesday.

Those conditions include: the platform setting upper limits on worker pay, monitoring performance, controlling the distribution of tasks and working hours, and making rules about staff appearance or conduct.