Negotiators from the European Parliament and the EU Council have reached a provisional agreement on a bill aimed at providing stronger protection for workers in the so-called ‘gig’ economy.

The Platform Work Directive aims to ensure that those working for digital platforms are classified correctly as employed or self-employed.

The proposals were originally put forward by the European Commission, which has welcomed the agreement.

'Missing out'

The parliament says that at least 5.5 million people performing such work may be wrongly classified as self-employed (known as bogus self-employment) and, as a result, are missing out on important labour and social-protection rights.

The new rules introduce a presumption of an employment relationship that is triggered when two out of a list of five indicators of control or direction are present. This list can be expanded by member states.

The indicators are:

• Determining the level of remuneration or setting upper limits,
• Supervising the performance of work through electronic means,
• Restricting the freedom to choose one's working hours or periods of absence, to accept or to refuse tasks, or to use sub-contractors or substitutes,
• Setting specific binding rules with regard to appearance, conduct towards the recipient of the service or performance of the work,
• Restricting the possibility to build a client base or to perform work for any third party.

The presumption can be triggered by workers, by their representatives, and by the competent authorities on their own initiative. This presumption can be rebutted if the platform proves that the contractual relationship is not an employment relationship.

Algorithmic management

The directive also introduces the first EU rules on algorithmic management and the use of artificial intelligence in the workplace.

Currently, those performing platform work do not have access to information on how the algorithms work and how their behaviour affects decisions taken by automated systems.

Under the new rules, platforms will provide this information to workers and their representatives.

The proposed legislation also prohibits platforms from taking certain important decisions, such as dismissals and the suspension of accounts, without human oversight.

‘Revolutionary’ agreement

The new rules will forbid platforms from processing certain types of personal data, such as personal beliefs, private exchanges with colleagues, or when a worker is not at work.

Rapporteur Elisabetta Gualmini MEP (pictured) described the agreement as “revolutionary”.

“We have transparency and accountability for algorithms, we have better rights for the least protected workers in the world, and we have fair competition for platforms,” she stated.

The agreed text will now have to be formally adopted by both parliament and the EU Council to enter into force.