Platform work: deal on new rules on employment status

The Platform Work Directive aims to ensure the correct classification of the employment status of people performing platform work and to introduce the first ever EU-rules on algorithmic management and the use of artificial intelligence in the workplace.Employee or self-employedCurrently, at least 5.5 million persons performing platform work may be wrongly classified as self-employed (known as bogus self-employment) and are missing out on important labour and social protection rights.

The new rules introduce a presumption of an employment relationship (as opposed to self-employed) that is triggered when two out of a list of five indicators of control or direction are present. This list can be expanded by member states. The presumption can be triggered by the worker, by their representatives, and by the competent authorities on their own initiative. This presumption can be rebutted if the platform proves that the contractual relationship is not an employment relationship.

TransparencyCurrently, persons performing platform work do not have access to information on how the algorithms work and how their behaviour affects decisions taken by automated systems. With the new rules, platforms will provide this information to workers and their representatives.More human oversight for automated decision-making and monitoring systemsWith the new rules, platforms will be prohibited from taking certain important decisions, such as dismissals and decisions to suspend an account, without human oversight. The text also ensures more human oversight on the decisions of systems that directly affect the persons performing platform work.Platforms will be also obliged to assess the impact of decisions taken or supported by automated monitoring and decision-making systems on working conditions, health and safety and fundamental rights.Use and processing of personal dataThe new rules will forbid platforms from processing certain types of personal data, such as personal beliefs, private exchanges with colleagues, or when a worker is not at work, and the Directive introduces more protective rules for platform work in the field of data protection.Platforms will also have to transmit information on self-employed workers in their employ to the competent national authorities and to representatives of persons performing platform work, such as trade unions.Use of intermediariesUnder the new law, it will not be possible for a platform to circumvent the rules by using intermediaries, i.e. when workers have a direct contractual relationship with a party other than the relevant digital platform. Member states will have to make sure that persons performing platform work working through intermediaries enjoy the same level of protection as those with a direct contractual relationship.QuoteRapporteur Elisabetta Gualmini (S&D, IT), said: “This is a revolutionary agreement and the first legislative framework for digital platform workers. We have transparency and accountability for algorithms, we have better rights for the least protected workers in the world and we have fair competition for platforms. Today, we can say to 40 million platform workers that Europe is there for them, also for the most precarious workers. I am honoured to have been in charge of this revolutionary change. What a beautiful night it has been and what a beautiful future we will have.”Next stepsThe agreed text will now have to be formally adopted by both Parliament and Council to enter into force.BackgroundEuropean Commission analysis from 2021 found that there are more than 500 digital labour platforms active and the sector employs more than 28 million people – a figure expected to reach 43 million by 2025. Digital labour platforms are present in a variety of economic sectors, be it “on location”, such as ride-hailing and food delivery drivers, or online with services such as data encoding and translation.