The Platform Work Directive: another step closer, but a final agreement is still pending

What is platform work?

With platform work, services, in most cases via an app or website, are offered on a platform. These platforms bring together the supply and demand of labour. The work is then carried out by platform workers who usually perform the work as self-employed workers. As they usually do not have an employment contract with the platform or the client, they lack labour law protection. European Commission research shows that as many as 5.5 million platform workers are missing out on this employment law protection because they are not self-employed but actually employees. 

Presumption of employee status 

The negotiating agreement stipulates that the future directive will introduce a legal presumption of employee status. This legal presumption aims to give the platform worker more employment law protection. If the relationship between the platform and the platform worker meets at least two of the five indicators, a legal presumption of employment will apply. The exact indicators have yet to be published, but the European Parliament press release assumes the following indicators: 

• The (maximum) remuneration is determined by the platform;
• The platform monitors performance (electronically);
• The platform deals with the distribution or allocation of work;
• The platform controls working conditions and restricts on the choice of working hours;
• The platform restricts freedom to organise work and gives rules on appearance or behaviour.

A first: rules for algorithmic management 

The General Data Protection Regulation stipulates that automated decision-making is allowed under certain circumstances. The negotiation agreement goes one step further; under no circumstances will platforms be allowed to make automated decisions on dismissals or suspensions of platform workers. This will provide more human oversight of systems' decisions that directly affect platform workers. 

The negotiating agreement also includes an obligation for platforms to assess the impact of algorithmic management before certain decisions on working conditions, health and safety and fundamental rights are left to algorithms. These rules apply in addition to the rules on algorithms from the new AI directive.

Rules on processing of personal data

Finally, the negotiating agreement provides rules on processing personal data. For example, platforms will be prohibited from processing certain categories of personal data, such as data on platform workers' personal beliefs and data relating to private conversations. Platforms will also be obliged to pass on information about platform workers to national authorities and representatives of platform workers, such as trade unions. 

No circumvention possible: obligations also for intermediaries

The negotiating agreement pays special attention to the role of intermediaries. Platforms cannot circumvent the obligations under the future directive by using intermediaries. In future, Member States should ensure that platform workers working through intermediaries are given the same rights as platform workers working directly for the platform. 

The Platform Work Directive: not there yet

The next step in the process would be to develop the negotiating agreement into a directive. This directive would then have to be approved by the European Council and the European Parliament. This is now in question as several member states have indicated they will not agree. In addition, there are new elections to the European Parliament in June which could change the number of supporters/opponents for the negotiating agreement. The Platform Directive may be another (small) step closer, but far from final. To be continued!

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