EU requires workers to become wage earners

Deliveroo Plc. and Delivery Hero SE were down in early London trade after Bloomberg reported that millions of individuals operating on such apps might be categorized as workers as part of the EU’s labor rights proposal.

Deliveroo plummeted as high as 5.7 percent to 248p per share in London on Friday, bringing the year-over-year fall to 35.5 percent, while Delivery Hero slid 2.7 percent to 104.5 cents per share in Frankfurt, bringing the year-over-year decline to 17.6 percent.

Reclassification of 4.1 million workers

The European Commission aims to press governments to reclassify up to 4.1 million economic workers as employees, including couriers and taxi drivers, regardless of what is mentioned in the contract. Platforms, not employees, will face the burden of demonstrating that they are not employees.

“The plan, which is expected out on December 8, will provide a backfill for those wanting to root out the gig economy,” Jefferies analyst Giles Thorne said in a client note.