EU Parliament adopts platform workers directive

07/05/24

Platform work is any work organised through a digital labour platform, such as a website or a mobile application, that involves the use of automated monitoring or decision-making systems. This platform workers directive applies to all persons performing platform work in the Union, irrespective of their place of establishment or the law otherwise applicable, and irrespective of the nature of their contractual relationship with the digital labour platform or an intermediary. In 2021 it was estimated that there are up to 28 million platform workers in the EU. While most platform workers are formally self-employed, about 5.5 million people may be wrongly classified as self-employed.

Background

The Platform workers directive aims to improve working conditions and the protection of personal data in platform work. The directive establishes minimum rights and rules for persons performing platform work. The directive aims to ensure that platform workers have their employment status classified correctly and to prevent false self-employment, which can deprive them of social protection and labour rights.

The directive requires member states to incorporate a legal presumption of employment in their national law. The criteria for the legal presumption will be determined by the members states in accordance with their national legislation, taking into account EU case law. Further, the directive also sets out new rules on algorithmic management, which requires human oversight on important decisions that affect platform workers, such as firing or dismissing them. The directive follows a recent decision of the Court of Appeal, which found that Deliveroo riders were employees and not self-employed contractors, and therefore entitled to collective bargaining and minimum wage.

What does this mean for employers?

The new directive could have significant consequences for platform employers, especially those who rely on low-paid and flexible workers, such as food delivery or ride-hailing services. Employers will have to ensure that they comply with the directive's provisions and respect the rights of persons performing platform work. Employers will also have to adapt their practices and procedures to the new legal framework and to the possible changes in the employment status of persons performing platform work. Employers will have to provide adequate information, training and support to their staff and managers on the use and implications of automated monitoring or decision-making systems. Employers will also have to engage in social dialogue and collective bargaining with the representatives of persons performing platform work, where applicable, and to cooperate with the competent authorities in the enforcement of the directive.

The directive could also have tax implications for both platform workers and platform employers, as the classification of employment status affects the taxation and social security contributions of both parties. The directive states that platform workers should have access to the same tax benefits and incentives as other employees, and that platform employers should comply with the same tax obligations and reporting requirements as other employers.

The directive will now have to be formally adopted by the Council and after publication, the EU countries have two years to incorporate the directive into national legislation.