Czech Republic progresses implementation of the Platform Work Directive

At a glance

• To date, EU Member States' progress on implementation of the Platform Work Directive (Directive) has been slow, notwithstanding that the deadline date of 2 December 2026 is fast approaching.
• However, the Czech Republic has now published a draft Platform Work Act (PWA) transposing the Directive, with key provisions expected to come into force on 1 January 2027.
• Digital platform providers employing workers in the Czech Republic, regardless of their country of incorporation, will need to be registered with the State Labour Inspection Office and platform workers will enjoy a rebuttable presumption of employment status.
• Organisations that engage self-employed contractors should also assess the impact of a revised definition of 'dependent work'.

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Scope

The PWA will implement the Directive in the Czech Republic and applies to digital labour platforms that organise platform work carried out within Czech territory, regardless of where the platform is registered or established. This means that any global platform engaging workers physically located in the Czech Republic will fall within scope.

A 'platform' is defined as a legal entity providing a service that is fully or partially delivered remotely by electronic means (eg via websites or mobile applications), at the request of a service recipient, where the service includes organising work by individuals for remuneration and involves automated monitoring or decision-making systems.

'Platform work' means work organised by a platform and carried out by a natural person for remuneration, while a 'platform worker' is any natural person carrying out that work.

Employment status presumption

A key aspect of the PWA is that it creates a rebuttable presumption of employment. Where facts indicate that dependent work criteria are met, a platform worker is presumed to be in an employment relationship with the platform or its intermediary.

An 'intermediary' is a person, who for the purpose of facilitating platform work, enters into a contract with the platform and with the platform worker, or is part of the contractual chain between the platform and the platform worker.

In practice, this means that labour inspectorates, tax authorities, and courts will treat platform workers as employees unless the platform can demonstrate otherwise. This is a significant reversal of the burden of proof that has characterised platform work disputes across Europe.

The platform or intermediary must prove that at least one characteristic of dependent employment (as defined in section 2(1) of the Labour Code) is not present in order to rebut the presumption. The Labour Inspectorate may carry out an inspection at the platform or intermediary's premises if they do not deem the rebuttal argument sufficient.

Algorithmic management and data protection

The PWA also places robust restrictions on automated management systems. It expressly prohibits platforms from:

• Using automated systems to process personal data relating to workers’ (or candidates') emotional or mental state.
• Collecting personal data when workers are not offering or performing work.
• Processing data anticipating the exercise of fundamental rights, or to determine racial or ethnic origin; political opinions; religious beliefs; immigration status; health status; trade union membership; sex life; or sexual orientation.
• Processing biometric data for identity verification by comparing with stored data of multiple individuals.

Platforms must also carry out a data protection impact assessment before processing personal data using automated systems. Critically, platforms must seek the views of platform workers and their employee representatives when conducting these assessments, and must provide completed assessments to employee representatives.

Information and transparency obligations

Platforms must disclose:

• Whether automated monitoring systems are in use; planned implementation of such systems must be notified to the employees in advance.
• The categories of data monitored.
• The purposes of monitoring.
• The recipients of data.

Similarly, platforms must inform workers about automated decision-making systems, including the categories of decisions made, key parameters used, and how personal data influences those decisions.

This information must be provided:

• In a commonly used, machine-readable format and in clear, simple language.
• To workers on their first day of work and, subsequently, before any changes affecting work organisation, and within 30 days of a written request.
• To employee representatives and supervisory authorities on request.
• To candidates if the automated systems are used in the recruitment or selection process.

Platforms must also provide communication channels enabling workers to contact each other and their representatives, and they are prohibited from accessing or monitoring these communications.

Internal whistleblower reporting systems must be extended to allow platform workers to submit reports, and there is protection against retaliation for workers who assert their rights.

Human oversight and review rights

The PWA requires platforms to supervise automated systems and assess their impact on workers at least every two years.

Platforms must appoint a designated person with authority to override automated decisions and must take corrective measures if a high risk of discrimination is identified.

Significantly, decisions to restrict or terminate a worker’s contract, or to cancel user accounts, must be taken by a human being - automated termination is not permitted.

Workers may request an explanation of any automated decision within 15 days. Written reasons must be provided even without request for decisions on account suspension or termination, non-payment, or changes to contractual status.

Workers and their representatives may request a review of any automated decisions, and platforms must respond within two weeks. Where a decision is found to infringe a worker’s rights, the platform must rectify the situation within two weeks or provide compensation within two months.

Enforcement and penalties

Compliance will be supervised by the State Labour Inspection Office and regional inspectorates, with the Office for Personal Data Protection overseeing data protection compliance.

Fines for non-compliance range from CZK200,000 to CZK3,000,000, depending on the nature of the offence.

For data protection breaches, the maximum penalty is EUR20,000,000 or 4% of annual global turnover, mirroring the GDPR enforcement framework.

In cases of serious violation, a prohibition on carrying out activities may also be imposed.

Key dates

The PWA is expected to come into force on 1 January 2027 and the employment presumption will take effect immediately.

By 1 January 2027, existing platforms must also register in the register of employers and platforms that do not have a registration, branch or a databox in the Czech Republic must appoint designated contact persons.

Practical implications for employers

Global platform businesses operating in or engaging workers in the Czech Republic should begin preparing for compliance well in advance of the January 2027 deadline. Key actions include:

• Assessing engagement models: Review whether current worker engagement structures in the Czech Republic are likely to trigger the employment presumption, and consider whether operational adjustments are required.
• Auditing algorithmic systems: Conduct a comprehensive review of automated monitoring and decision-making systems to identify prohibited data processing activities and ensure compliance with the new restrictions.
• Establishing human oversight mechanisms: Designate qualified individuals with authority to override automated decisions and implement processes for biennial impact assessments.
• Preparing information disclosures: Develop clear, machine-readable documentation of automated systems for provision to workers, representatives, and authorities.
• Keeping a watching brief for local laws: Organisations with multi-country  operations should keep a keen eye on developments in other EU Member States and be ready to move forward with a considered business strategy, recognising that although a EU-wide approach may be possible in relation to some obligations, jurisdiction-specific requirements will also need to be addressed