The European Union has taken a significant step forward in regulating the gig economy with the recent agreement on the Platform Workers Directive (PWD). This deal includes a rule stating that in certain situations, the employer or platform must prove that the worker is not an employee. This directive holds implications for millions of workers across the EU and could reshape the landscape of employment rights. Here's a breakdown of what the agreement entails and its potential impact.
Provisional deal reached:
EU ministers have reached a provisional deal for the Platform Workers Directive, marking a crucial milestone in addressing the challenges workers face in the gig economy.
"Workers will gain new rights under the directive, including the right to understand decisions made by automated systems and restrictions on the use of personal data, such as biometric data or emotional states."
Presumption of employment status:
A key feature of the directive is the inclusion of a presumption of employment status in certain circumstances. This means that in situations where this presumption applies, it will be for the "employer" or platform to prove that the worker is not an employee.
EU-wide test dropped:
While the original proposal included an EU-wide "test" for determining employment status, it was dropped due to opposition from four EU countries. Instead, each member state will have the independence to define the criteria for determining employment status, including what constitutes "control" or "direction."
Empowering gig workers:
The directive's presumption of self-employment as a starting point could empower gig workers to assert their rights more confidently and bring claims against employers when necessary.
Rights of workers:
Workers will gain new rights under the directive, including the right to understand decisions made by automated systems and restrictions on the use of personal data, such as biometric data or emotional states.
Impact:
The impact of the directive extends beyond traditional gig economy platforms like taxi and delivery apps. It includes workers whose tasks are assigned or assessed using automated decision-making, which includes many staffing companies.
Next steps:
The next steps involve translating the draft directive into multiple languages, agreeing on translations, adoption, and a two-year implementation period for member states to incorporate the directive into national legislation.
Uncertainty in the UK:
While the EU moves forward with the Platform Workers Directive, the UK's adoption of similar measures remains uncertain. However, there is speculation about potential adoption under a new Labour government, particularly in addressing "bogus" self-employment contracts and "exploitative" zero-hours arrangements.
The agreement on the Platform Workers Directive represents a significant development in the regulation of the gig economy within the EU. It introduces important worker protections and sets the stage for further discussions on employment rights in the digital age. As member states move towards implementation, the directive's impact will be closely monitored, with potential implications for workers' rights across the continent.
If you’d like to speak to someone at Giant about how to achieve compliance while managing your workforce, please get in touch. We have over 30 years of experience supporting companies in managing their workforces.
