EU strikes deal on employment rights for platform workers
Blog • Global Payroll • Jan 24, 2024 11:39:42 AM • Written by: Holly Spiers
The European Union has recently made a major decision to improve how platform workers are treated. They agreed on a new set of rules called the Platform Work Directive which is set to provide better rights and protections to platform workers in EU countries. Here are the key highlights of this ground-breaking agreement:
What are platform workers?
A platform worker is someone employed by a company that offers particular services through an online platform, connecting directly with individuals or organisations.
"This agreement covers over 500 digital platforms and more than 28 million workers. As the sector grows to 43 million by 2025, the significance of this agreement cannot be overstated."
The EU is setting groundbreaking rules on how companies can use artificial intelligence and algorithms in the workplace. This forward-looking approach aims to set standards and regulations for the rapidly evolving tech-driven jobs.
2. Fixing worker misclassification
Around 5.5 million platform workers in the EU may be wrongly labelled as self-employed. The new agreement helps fix this by assuming a worker is employed if certain signs of control or direction are present.
3. Better rights for workers
Workers who were wrongly classified will now have easier access to their rights as employees under EU law. Countries can add more signs to the list to fit their situations.
4. Human oversight of important decisions
Companies can't make important decisions, like pay or firing, without human oversight. They also must check how automated systems affect workers' conditions, health, and fundamental rights.
5. Protecting personal data
The agreement places restrictions on the processing of certain kinds of personal data through automated systems, ensuring the protection of workers' privacy. This includes data related to emotional or psychological states, private conversations, and predictions related to trade union activity. Workers' privacy is a priority.
6. What's next? Adoption process
While the provisional agreement is a significant milestone, the next steps involve endorsement by the Council and Parliament. Following this, Member States typically have two years to incorporate the directive into their national legislation, setting the stage for widespread implementation.
7. Impact on Companies
This agreement covers over 500 digital platforms and more than 28 million workers. As the sector grows to 43 million by 2025, the significance of this agreement cannot be overstated. It's seen as a game-changer for providing transparency, fairness, and worker rights in the digital job world.
In a nutshell, the EU's Platform Work Directive is reshaping the future of digital employment. With groundbreaking rules on AI, a focus on worker rights, and a call for human oversight, this agreement marks a pivotal moment in fostering fairness, transparency, and accountability in the ever-evolving world of platform work. Companies should brace for a transformative impact as the digital job landscape undergoes a revolutionary shift!
At Giant Group our comprehensive end-to-end solution, encompassing vendor management, screening, timesheet management, billing, and payments, demonstrates our commitment to providing a scalable and seamless experience. Also, our global employment options, powered by proprietary software and award-winning support services, set us apart in the industry. At Giant Group, every effort is tailored towards enhancing and elevating the client experience, making us a trusted partner in the dynamic world of platform work.