EU Finalizes Platform Workers Directive
The European Union has recently confirmed the provisional agreement on the Platform Workers Directive, aimed at enhancing the working conditions of gig economy workers and regulating algorithmic management. The Directive introduces a legal presumption to assist in determining the employment status of digital platform workers, shifting the burden of proof to the platforms themselves to demonstrate the absence of an employment relationship. This change marks a significant shift from earlier drafts which presumed employee status based on specific criteria.
Under the Directive, Member States are tasked with incorporating these provisions into their national laws, taking into account existing national law, collective agreements, and EU case law. This decentralized approach allows for flexibility but also demands that Member States guide digital platforms and national authorities on the new measures. The UK, though no longer bound by EU laws, will observe these developments closely, especially in light of the Labour party’s proposal to redefine worker status and rights within the gig economy.
The Directive also places strict limits on the use of algorithmic management tools by digital platforms, prohibiting automated decision-making based on sensitive personal aspects such as psychological state or private activities. All forms of automated monitoring must undergo a Data Protection Impact Assessment (DPIA), and platforms must ensure transparency and human oversight. These provisions complement existing GDPR guidelines and anticipate the enforcement of the forthcoming EU AI Act.
With the text of the Directive set to be finalized and adopted, EU Member States will have two years to implement these rules. The Directive aims to make decision-making processes on digital platforms more transparent, allowing workers to better anticipate and contest unfair practices. As these regulations align closely with GDPR principles, platform operators should prepare for early enforcement by data protection authorities.
Source: EU confirms agreement on rules to improve working conditions of platform workers