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Situation
A Polish independent contractor had been working for a Polish broadcaster for some time based on service provision contracts. Within this broadcaster, the independent contractor provided services in the editorial and advertising department. In 2017, the broadcaster cancelled his services just before a week he was scheduled to work and no longer offered him any new assignments. The independent contractor believed this was because he and his partner had recently produced and posted a Christmas song on their YouTube channel promoting tolerance towards same-sex partners. The accompanying music video depicted same-sex partners celebrating Christmas. The independent contractor contested the abrupt termination of the assignment and sought compensation.
The Court was faced with the discussion on whether Sections 3 and 17 of the European Directive on equal treatment in the workplace (hereinafter: ‘the Directive’) apply, as the independent contractor had a service provision contract and not an employment contract. According to the company in question and the Polish government, such protection is excluded in these contracts. The Court faced the question: does an independent contractor have the right to the same protection against discrimination in the workplace as an employee? And how does this relate to the freedom of entrepreneurship and free choice of contract?
Ruling
The answer to the first question is yes. The term ’employee’ in the Directive should be interpreted broadly, according to the Court, allowing independent contractors to be included under this term. The Court bases this on the premise that the type of contract the ’employee’ has does not matter. Independent contractors can also receive the same protection as ’employees’ under European law. The freedom of entrepreneurship and free choice of contract do not justify refusing to offer contracts to independent contractors based on their sexual orientation.
Furthermore, it is important to note that the Directive’s objective is not ’employee protection’, but the elimination of discrimination-based barriers to accessing means of subsistence and the ability to contribute to society through work, regardless of the legal form in which that work is performed. It is required that the professional activities are real and carried out within the framework of a legal relationship characterized by a certain stability. Providing a ‘single service’ or supplying goods is not sufficient.
Consequences for employers or contractors
With this ruling, the Court sends a clear signal to companies and contractors. They must not treat independent contractors differently based on their religion, belief, disability, age, or sexual orientation – regardless of the type of contract they have with them. Once again, case law takes a step towards protecting independent contractors, thereby narrowing the difference between them and permanent employees.
ESG
HVG Law endorses the importance of ESG in the workplace. By working with a team of ESG specialists, HVG Law can help its clients meet the highest standards of ESG. Moreover, responsible entrepreneurship is inherent to the values within HVG Law and the way HVG Law operates. We are always eager to work with employers to promote and introduce ESG in the workplace.
Based on this ruling, it is crucial for employers to review (or re-assess) their whistleblower schemes to ensure they are ESG proof. We are at your service to assist with this.
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