DIGITAL PLATFORMS / NEW EU DIRECTIVE / WORKING CONDITIONS OF PLATFORM WORKERS/ PRESUMPTION OF EMPLOYMENT

In December 2023, negotiators from the European Parliament and the Council of the EU reached a provisional agreement on a bill to improve the working conditions of persons performing platform work. The following key rules will apply:

1) First ever EU-rules on algorithmic management in the workplace

2) Presumption of an employment relationship triggered by two out of five indicators (please see the list below) – burden of proof ~> digital platform

3) Workers cannot be dismissed by automated systems

LIST OF 5 CRITERIA – to determine whether the platform is an EMPLOYER:

◽️the remuneration (or its upper limit) is determined by the platform
◽️binding rules are in place with regards to appearance, conduct towards clients or
performance of the work;
◽️electronic means are in place to supervise and assess performance
◽️restrictions are in place on working time, freedom to turn the App off or to use a of substitute; and
◽️exclusivity/non-competition is required

Background:

European 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

Currently, 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.

Over 90% of digital labour platforms in the EU classify the people working through them as self-employed.

Next steps: after the formal approval of the agreement by the European Parliament and the Council, Member States will have 2 YEARS to incorporate the EU Directive into national law.

Main source of the above information:

https://www.europarl.europa.eu/news/en/press-room/20231207IPR15738/platform-workers-deal-on-new-rules-on-employment-status