Employment

Gig economy apps face billions in extra costs under EU deal

The likes of Uber and Deliveroo may have to reclassify self-employed contractors as employees under provisional agreement

Deliveroo drivers may have to be reclassified as employees of the company

Companies in the gig economy could be facing billions in additional costs after the European Union backed a deal to reclassify millions of people working for them as employees rather than self-employed.

The provisional agreement will 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, ...