The bill follows the example of other European countries, like Spain, which have been increasingly taking on the gig economy platforms.

Portuguese gig economy is marked by the following features: first, a viable dialogue between digital

platforms and policy makers (national and local); second, a national regulatory scheme that imposes specific sectoral constraints on digital platforms; and third, the generic application of the Labour Code to of atypical working relationships, including an extensive social safety net available to all workers, irrespective of their status.

It is interesting to highlight that in 2018 Portugal was one of the first European countries to pass a law – Lei 45/2018 (the ‘Uber law’) – exclusively aimed at framing ride-hailing operations by digital platforms.

The Uber Law defines the legal framework within which Uber and other ride-hail apps are allowed to operate in Portugal.

The law simply offers a legal infrastructure for regulating the sector – thus establishing the limits within which platforms, drivers and ride-hailing operators can operate – while relying on the rules already laid down in the Labour Code for work related matters

In this context, it is important to see if the bill is approved by the Parliament and its concrete consequences on all the employment related matters and the economy as a whole.

According to Portugal’s Labour Minister, Ana Mendes Godinho, the bill will assume that a worker has an employment relationship with the platform depending on the  relationship between the platform, the worker  and the end customer, subject to confirmation by the courts. Digital platforms will also have the obligation to transparently inform the relevant authorities (Work Conditions Authority), workers and their representatives, about the criteria of algorithms and the artificial intelligence mechanisms used.

“Fighting precarious employment is one of our top priorities,” she said.

The Business Confederation of Portugal (Confederação Empresarial de Portugal, CIP)expressed concerns around this draft bill.It considers that the presumption of labour contract could make access to the labour market more difficult for the most vulnerable. Such exclusion could also promote undeclared work, pushing the self-employed to an even more vulnerable situation, to which the manifest negative effects on the economy as a whole would be added, with particular emphasis on unfair competition.

On the other hand, people often choose the flexibility and autonomy offered by self-employment, including working through platforms, as they are not bound by contractual obligations to an employer and can organize and control their own schedule or implement a business idea.

For this set of reasons, CIP expressed that the creation of a presumption of work adapted to activities developed through  digital platforms – constitutes a solution fraught with greater uncertainty, costly and potential litigation. In this context, CIP does not support the draft bill.

Separately, the dissolution of the Parliament in recent days announced by the President of the Republic and the scheduling of general elections for 30 January, after the rejection of the Governments’State Budget Proposal for 2022, has put on hold the draft bill’s final approval.