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On 24 April 2024, the European Parliament approved the Platform Work Directive. We refer you to this press release and our previous blog for more details.
Key points from the Platform Work Directive include:
Presumption of an Employment Relationship
- Member States will implement a legal presumption of an employment relationship in their national laws. This presumption applies when facts are established that indicate control and direction, assessed according to national law, collective labor agreements, and EU case law.
- Platform workers, their representatives, or national authorities may invoke this legal presumption to challenge an incorrect classification. The burden of proof thus shifts to the digital platform to demonstrate the absence of an employment relationship.
Indicators of an Employment Relationship
An employment relationship is presumed if at least two of the following five indicators are met (note: individual Member States may expand this list):
- The platform determines the (maximum) compensation;
- Electronic monitoring of the worker’s performance occurs;
- iii. The platform controls task distribution or assignment;
- There is monitoring of working conditions and limitation of freedom in choosing working hours;
- Limited freedom to organize work according to personal discretion, including rules on appearance or conduct.
Regulation of Algorithm Use
- Consider transparency in how task prices are set and tasks are distributed.
- A platform worker cannot be terminated or rejected by an algorithm or other automated system. Human oversight is required.
Privacy Protection for Platform Workers
Platforms are restricted from processing certain types of personal data, such as information regarding an individual’s emotional or psychological state and personal or political beliefs.
The final text of the Platform Work Directive must now also be formally adopted by the Council. Following its publication in the Official Journal of the EU, Member States will have two years to transpose the Directive into national legislation.
We will keep you updated on further developments regarding this subject.
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