German Bundesrat Calls for Stricter Rules and Direct Employment for Delivery Services

The German Bundesrat, the Federal Council, has demanded decisive action against precarious employment relationships in the digital platform economy. In a resolution passed on Monday, the chamber of states urged the federal government to tighten regulations for food and grocery delivery services.

The central demand is for a legal requirement for the direct employment of couriers. This aims to prevent the increasing use of opaque subcontractors within the industry, which the states argue hinders fair working conditions. This demand goes beyond the minimum standards of the EU directive on platform work, which primarily seeks to clarify the employment status of gig workers and combat false self-employment.

The Bundesrat now calls for the Federal Ministry of Labour to swiftly present a corresponding draft law. It also asks the ministry to examine whether successful mechanisms from the Package Courier Protection Act, such as subcontractor liability for social security contributions, can be applied to food delivery services.

While acknowledging the rapid growth of the digital platform economy and its role in innovation and job creation, the states see an urgent need to address fundamental worker protection rights. Many platform workers operate in a legal grey area, characterized by low wages, precarious contracts, information deficits, and extreme dependence on the operators' algorithms. The involvement of extensive subcontracting networks exacerbates these issues.

The resolution injects new momentum into a debate that has preoccupied the Conference of Labour and Social Affairs Ministers for years. Although there are no legal deadlines for the government to respond or act on the proposals, the approaching EU implementation deadline in December increases pressure on the Ministry of Labour to establish legal facts for courier services promptly.