Spain and the Netherlands Highlight Pay and Classification Priorities for Flexible Workers

Notable regulatory decisions across EMEA underscore the importance of contractors and freelancers as part of the overall economy. For companies doing business and engaging workers in these countries, the rules point to more employee-centric powers for flexible workers. This development should merit attention from employers that need to ensure they are treating workers with appropriate pay, benefits, and tax policies.

Specifically, a court in Spain ruled in July of this year that couriers for online food delivery company Deliveroo should be classified as employees, not freelancers. This ruling means that the gig workers in question should be subject to social security, insurance, and wage policies typically associated with employees. The court classified them as employees, citing the lack of autonomy and specific company rules being applied to the workers as reasons why.

In the Netherlands, a court issued a similarly worker-friendly ruling that gives freelancers the right to make collective agreements on minimum income. This ruling goes against the current rule banning collective bargaining that was intended to prevent higher prices for consumers. With many freelancers working below subsistence levels, however, the government plans to implement a minimum wage in 2021. ACM, the Dutch government organization responsible for enforcement, subsequently announced it would not act against collective agreements by freelancers leading up to that 2021 date.

Takeaway: Companies engaging flexible workers, either directly or through agencies or contractors, will experience an increasing burden of responsibility to ensure that workers who act as traditional employees are treated with the same opportunities and accommodations as employees. Across the EMEA region, a focused resource management capability can help employers gain a clear picture of their contractors, freelancers, and contingent workers – a critical factor in staying ahead of changing regulations.

North America

Canadian Ruling Accounts for Past Contractor Status When Releasing an Employee

California Privacy Law Will Carry Responsibilities for Employers

Marijuana Legalization Begins a Possible Employment Screening Trend

Dynamex’s ABC Test for Contractor Misclassification Codified Into Law

State and Local Jurisdictions Implement Salary History Bans

Court Upholds Web Sourcing of Candidate Data … for Now

EMEA

Private UK Companies Will Not Be Exempt from IR35

Gig Economy Employers Navigate Germany’s Temporary Employment Act

EU PSD2 Directive May Lead to Adjustments in Payments and Invoicing

APAC

China to Relax Immigration Rules

Japan Sets Equal Pay for Equal Work Guidelines for Engaging Temporary Workers