Estonia not following Finland's lead in classification of platform workers

Finland's Supreme Administrative Court has ruled that food couriers working with the Wolt platform ought to be classified as employees rather than independent entrepreneurs. Under Estonian labor laws, however, platform workers are still considered entrepreneurs with no plans for similar changes to be implemented.
Finland's highest court found that the independence of Wolt's food couriers is rather illusory and conceals a real employment relationship. However, according to Wolt, the ruling had two components.
"The main issue was originally whether Finnish labor law applied to Wolt, and Wolt was right about that – the labor law did not apply to Wolt, and so, Wolt won that legal dispute. However, the other issue that became decisive was whether the criteria of an employment relationship were met in Wolt's case, and in that respect the court ruled that they were," said Olli Koski, Wolt's director of Nordic government relations.
Koski called the court's decision surprising for Wolt, but added there would be no immediate changes to the company's working practices as a result. He sees Finnish labor legislation as somewhat outdated, while in Estonia things are more flexible and modern.
"In our view, there is neither any need nor pressure to have a discussion like this in Estonia, for example. In Finland, labor laws have generally been more old-fashioned and rigid," Koski said.
The Estonian Ministry of Economic Affairs said states that it does not see the need to revise Estonian labor laws in light of the Finnish judgment. In the Estonian legal system, platform workers, both food delivery drivers and taxi drivers, are and will continue to be entrepreneurs.
"In Estonia, the Employment Contracts Act defines an employment relationship as a subordinate relationship: an employee is subject to the direction and control of the employer, and if a person is free to decide for themselves how to do what they does, then that is a provision of a service, which can be done under a company or service contract," said Ulla Saar, undersecretary for labor at the ministry.
According to Saar, the Finnish court ruling against Wolt was surprising, though there have been hundreds, if not thousands, of platform work cases in the EU, she said as a balance between the obligations and rights of companies is being sought.
"Usually, even after court cases like these, if it is found that there is an element in the operating model of the platform that is too similar to an employment contract, these platforms will then remove that element from their business model," Saar said.
Estonian labor law also allows for an employment contract to be concluded with the platform worker, in addition to setting up a limited liability company or using a company account. Wolt is implementing that option in Estonia. Wolt's competitor Bolt, on the other hand, does not allow contract work.
"They pay income tax, social tax and unemployment insurance contributions to the state, so if the person providing the service through the platform falls ill, becomes unemployed, and they have done enough work, they can get all the help they need from the state. In other words, I would say that in the Estonian context, Wolt is a really exemplary platform for us," Saar said.
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Editor: Michael Cole, Marko Tooming