Last Monday, 11 March 2024, the EU Ministers of Employment and Social Affairs finally reached agreement on the Platform Work Directive. Following the historic agreement in December 2023, the final directive seemed within reach, but several member states, including France and Italy, indicated they could not after all agree to its contents, fearing excessive European interference in national employment law. The Netherlands had strongly championed the European directive, and now the moment has arrived: all member states have agreed to the Platform Work Directive. The Directive is intended to give platform workers greater employment-law protection.
What is platform work?
Platform work involves services offered through a platform, usually via an app or website. Think of Uber, Deliveroo and Helpling. These platforms connect supply and demand. The work is generally carried out by self-employed individuals without an employment contract, meaning they do not enjoy the employment-law protection that employees do.
Legal presumption of an employment contract with the platform
Article 5 of the Directive introduces a legal presumption of employment between a (usually digital) work platform and the person carrying out the work (formerly: the self-employed contractor), where there are factual indications of control and direction. This is a rebuttable presumption: the work platform can rebut it by proving that the contractual relationship is not, in fact, an employment relationship. The presumption is intended to give platform workers stronger employment-law protection. The agreed rules also create a level playing field across Europe for businesses.
Algorithmic management with human oversight
The new Directive also sets out which decisions platforms may not leave to algorithms. The rules on algorithmic management create greater transparency. Important decisions, such as dismissal or a reduction in work, must involve human oversight. This gives platform workers the right to receive an explanation of such decisions and to have them reviewed.
Use of data by platforms
The Directive also introduces new rules on platforms’ use of data. For example, platforms may no longer process certain personal data, such as information on religious beliefs or private conversations with colleagues. Platforms are also required to pass on information about self-employed workers to national authorities.
What happens next?
Once the agreement has been formally adopted by the European Parliament, member states will have two years to implement the Directive.
Curious about the (further) implications of this European Directive? Our employment lawyers are happy to talk it through with you.
