Introduction
All over Europe, people perform work through digital work platforms. In the European Union, it is estimated that there will be about 43 million platform workers in 2025. Through a platform, services are offered through an application or website. These services are performed by working people (platform workers). In 2022 there were 28 million platform workers which means there has been a significant growth in this market. When platforms operate in different member states or across borders, it is often unclear by whom the platform work is performed, especially when it comes to online platform work.
To bring more clarity, the European Platform Work Directive was published on Oct. 2, 2024. The European Union wanted to provide minimum rights for platform workers and rules for better protection of the personal data of individuals who perform platform work. With this directive, the European Union also wants to improve the transparency of platform work, including in cross-border situations.
Digital work platforms use algorithms such as computerized monitoring systems and automated decision-making systems, for tasks that were previously generally performed by managers. These include, for example, assigning tasks, pricing individual jobs, determining working hours, giving instructions, evaluating work performed, stimulating incentives or applying adverse treatment. The algorithms have a great impact on the worker, while the worker often does not have access to information about how the algorithms work, what personal data are used, or how their behaviour affects the decisions made by the systems. The Platform Work Directive therefore sets rules regarding the use of algorithms by digital work platforms.
Platforms will first have to provide clear information on the use of automated systems and how these systems work. In addition, the directive sets limits on the type of data that may be processed by automated systems: no personal data on emotional or psychological state, no data relating to private conversations, no data to predict (possible) union activity, no data to infer racial or ethnic origin, migration status, political opinions, religious beliefs or health status, and no biometric data. Finally, human oversight of automated systems will be mandatory.
Pseudo self-employment
Currently, most platform workers are formally self-employed. As recent case law shows, they may in fact have an employment relationship and therefore should enjoy the employment rights and social protection afforded to workers under national and EU law. Read our blog on pseudo self-employment here. However, Member States approach platform work differently.
Legal presumption for employees
One of the goals of the Platform Work Directive is to make it easier to correctly determine the employment status of platform workers. Article 5 of the Platform Work Directive therefore includes a legal presumption. A platform worker is presumed to be an employee when there are actual indications of “control and direction”. In such a situation, a worker can suffice with the assertion that he is in fact an employee. The platform must disprove this assertion, which means that it is up to the platform to prove that there is no employment relationship.
Safety and health of platform workers
The Platform Work Directive also stipulates that Platforms must take the necessary measures to guarantee the safety and health of platform workers. This may include taking measures to combat violence and (sexual) harassment. Furthermore, Article 17 introduces an obligation to report so that Platforms are registered by formal authorities. For example, the platform will report the number of people that perform platform work, the applicable general conditions, the income level and the average duration of the deployment.
Implications for practice
Platform work will from now on be regulated by European legislation. Member States have two years to implement the Directive. At this time there is no concrete legislative proposal. When developments occur within the framework of this Directive, we will inform you.
It is wise for platforms to look ahead and prepare for these future rules. As a result of implementation of the Directive, platform workers may be classified as employees sooner. In addition, platforms may need to adjust their processes regarding the use of algorithms and automated systems.
Do you have questions about protecting personal data in the context of platform employment? Or do you have questions about the employment law aspects of platform work? Please contact Frederiek Beuning or a colleague from the Data & Privacy Team or Rose Horstman or a colleague from the Labor Law Team. They will be happy to help you further!
Find the Platform Work Directive here.
