EU Platform Workers Directive

12 January 2024 2 min read

By Emily Gallagher

At a glance

  • The Council and the European Parliament have reached an agreement on a proposed directive to improve working conditions for platform workers (Directive).
  • It will enable millions of platform workers to gain access to employment rights.  
  • The Directive establishes the first EU rules on the use of algorithm systems in the workplace and will make it easier for those working for digital platforms to have the correct employment status determined.

The Council and the European Parliament have reached an agreement on a proposed Directive. It will enable millions of platform workers to gain access to employment rights.

The Directive introduces two important improvements; it establishes the first EU rules on the use of algorithm systems in the workplace and will make it easier for those working for digital platforms to have the correct employment status determined.

Transparent use of algorithms

Algorithms are regularly used by platform workers for human resource management, leaving platform workers with a lack of transparency as to how decisions are being made and how their personal data is being used.

The agreement ensures that workers are informed about the use of automated monitoring and decision-making systems. It will also prevent digital platforms from processing certain kinds of data by means of automated monitoring, including:

  • personal data on the emotional or psychological state of platform workers;
  • data related to private conversations;
  • data to predict actual or potential trade union activity;
  • data used to infer a worker’s racial or ethnic origin, migration status, political opinions, religious beliefs or health status; or
  • biometric data, other than data used for authentication.

These systems will need to be monitored by qualified staff, who enjoy special protection from adverse treatment.

Employment status of platform workers

Currently, the majority of platform workers in the EU are self-employed, however, a number are being expected to abide by the same rules as employed workers, suggesting that they are in fact in an employment relationship, and therefore should be enjoying the labour rights offered to employees under national and EU laws. Under the new agreement, workers will be legally presumed to be employees of a digital platform if their relationship with the platform fulfils at lease two of the five indicators set out in the directive:

  • upper limits on the amount of money workers can receive;
  • supervision of their performance, including by electronic means;
  • control over the distribution or allocation of tasks;
  • control over working conditions and restrictions on choosing working hours; or
  • restrictions on their freedom to organise their work and rules on their appearance or conduct.

In the implementation of the directive, member states can add further indicators to the above list.

In cases where the legal presumption applies, it will be up to the digital platform to demonstrate that no employment relationship exists according to national law and practice.