This week, the EU Council agreed on a general approach for a proposed directive that aims to improve working conditions for platform workers and provide them with employment rights. Almost a year and a half after the proposal of the European Commission, European labour ministers agreed to open the door to interinstitutional negotiations.

The proposed directive seeks to address the issue of misclassification by determining the correct employment status of individuals in the gig economy. Under the Council’s approach, if the relationship of the worker with the platform fulfils at least three of the seven criteria set out in the directive, the worker will be legally presumed to be an employee rather than self-employed.

With the aim is to provide workers with clarity and protect their rights, the agreement of the Council also focuses on ensuring transparency in the use of algorithms by digital labour platforms. Workers often lack information on how personal data is utilised and decisions are made. Under the new proposed rules, qualified staff will monitor automated systems, and human oversight will be present for significant decisions such as account suspensions.

On the basis of the approach agreed upon, the Council will now begin negotiations with the European Parliament, with a view to reaching a provisional agreement.

CESI Secretary General Klaus Heeger said: “The adoption of a general approach by the Council reflects the willingness of the Member States to regulate platform work. However, it’s clear that the process encountered significant disagreements among Member States, and we can expect that there is still a long way ahead of us. Further work is needed to address concerns and ensure a comprehensive directive that effectively protects platform workers.”

Background information

The Commission estimates that around 5.5 million workers in the EU, currently classified as self-employed, are, in fact, in an employment relationship with digital platforms and should enjoy labour and social rights. The proposed directive aims to rectify this misclassification and provide workers with the necessary protections. Additionally, it seeks to enhance transparency, traceability, and awareness of developments in platform work, ensuring fairness and accountability across borders.