Draft legislative proposal for the Platform Work Act open for consultation

At a glance

• The draft legislative proposal for the Platform Work Act (Act) serves to implement The Platform Work Directive (EU) 2024/2831 (Directive) on improving working conditions in platform work. The proposal aims to improve working conditions and the protection of personal data in platform work.
• The proposal introduces a rebuttable presumption of employment where at least two indicators of direction and supervision are met, shifting the burden to the platform to prove that no employment contract exists. It also includes, among other things, requirements on algorithmic management and information and consultation obligations.
• It is open for internet consultation to the public until 24 August 2026. After that, the legislative process will continue with advice from the Council of State, and the proposal will subsequently be considered by the House of Representatives and the Senate.

Scope

The Act applies to digital labour platforms. These are services that organise paid work remotely, by electronic means, using automated systems. Services whose main purpose is the exploitation or sharing of assets, or the sale of goods by private individuals, are not covered.

The Act covers everyone who works through a digital platform, regardless of whether this is based on an employment contract. Some rights apply only to employees. Others apply to all platform workers.

The legal presumption

The proposal introduces a rebuttable legal presumption of an employment contract for persons performing platform work. The presumption applies where there are factual indications of direction and supervision by the digital labour platform. In the explanatory memorandum, these indications are set out in five criteria. The five criteria are:

• The digital labour platform determines or influences the level of remuneration.
• The distribution or allocation of assignments is determined by or on behalf of the platform.
• The performance of the work is supervised by or on behalf of the platform.
• The freedom to accept or refuse tasks is restricted, including through sanctions.
• The person is required to comply with specific binding rules on appearance, conduct or the performance of the work.

For a successful reliance on the legal presumption, at least two criteria must be met. In this case, it is for the platform to prove that there is no employment contract. The legal presumption does not change the classification of employment relationships. It only lowers the threshold for proving that an employment contract exists.

Other measures

A large part of the proposal concerns algorithmic management. Digital labour platforms may not process certain personal data through automated systems. They must also carry out a data protection impact assessment. They must be transparent about those systems and provide for human oversight. Workers obtain the right to an explanation and review of automated decisions, and to data portability. In addition, the proposal contains rules on safety and health, information and consultation, a reporting obligation, and communication channels.

When automated systems are introduced or substantially changed, workers’ representatives must be provided with timely information and consulted. They may seek expert advice in this context. If there are no representatives, the platform workers must be informed directly.

Entry into force

The Directive must be implemented by 2 December 2026 at the latest. The Netherlands will not meet this date and aims to implement it as soon as possible. The legislative proposal provides for transitional law for the legal presumption. The legal presumption applies only from the date on which the Act enters into force, regardless of the commencement date of the contract. The other provisions have immediate effect.