European officials are preparing a directive on platform work. The new rules aim to improve the working conditions and social rights of people working in this unusual form of employment. We look at how the new rules will change the EU labour market.
What is platform work
According to the proposed definition, platform work is any work organised through a digital labour platform and performed in the EU by an individual on the basis of a contractual relationship between the digital labour platform and the individual, regardless of whether there is a contractual relationship between the individual and the actual service provider.
In practice, this type of work is carried out by, among others, people who deliver ordered food (Uber Eats, Bolt). It is also increasingly used for example by people providing small repairs and cleaning services.
Clear rules for determining employment status – the main aim of the new legislation
A key issue is the legal status of these individuals.
In fact, the vast majority of EU countries recognise them as self-employed with all the consequences that this entails, regardless of the actual conditions under which they work.
In practice, this deprives them of the legal protection guaranteed to employees such as:
- Minimum wage guarantee
- Limitation of working hours
- Occupational health and safety standards, etc.
To address this, EU lawmakers are proposing the opposite approach and automatically recognising the existence of an employment relationship when at least two of the following five criteria are satisfied:
- De facto determining or setting upper limits for the level of remuneration
- Requiring the person performing the work to respect specific binding rules regarding appearance, conduct towards the recipient of the service or performance of the work
- Supervising the performance of the work or verifying the quality of the results, including electronically
- Effectively restricting the freedom, including through sanctions, to organise one’s work, in particular the freedom to choose one’s working hours or periods of absence, to accept or refuse tasks or to use subcontractors or substitutes
- Effectively restricting the possibility to build a client base or to perform work for third parties
Algorithmic management in the workplace
Digital platforms use automated decision-making systems for activities such as assigning work, monitoring, evaluating and making decisions about the people who work through them. Such practices are referred to as ‘algorithmic management’.
The proposed legislation therefore aims to ensure fairness, transparency and accountability in this type of management by guaranteeing additional rights to those concerned.
Digital platforms will be required, in particular, to:
- Inform individuals working through such platforms of the application of automated systems used to monitor, supervise or evaluate the work performance and of the use of automated decision-making or decision-support systems that will significantly affect working conditions
- Designate specific contact persons with whom the worker can discuss the facts, circumstances and reasons for decisions affecting the worker
- Regularly monitor and evaluate the impact on working conditions of decisions made or supported by automated monitoring systems
- Assess the risks of automated monitoring and decision-making systems to the safety and health of people working through digital platforms and put in place appropriate preventive and protective measures
Making work through digital platforms more transparent
EU lawmakers are also proposing to make work registration mandatory.
The platforms, which are de facto employers, will have to report the work carried out through them to the authorities of the Member State in which it is carried out and share the relevant data with them.
Deadline for new legislation
The ongoing digital transformation has significant implications for the labour market, including the rights and obligations of all its participants.
Provisions ensuring greater protection for those working through digital platforms, who are often exposed to poor working conditions and insufficient access to social protection, should be welcomed.
Member States will need to fine-tune some of the EU rules, which could be problematic given the highly specialised nature of the area.
This is because the adoption of the directive will entail the need to transpose its provisions into local legislation. And this may prove to be quite a challenge.
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