The European Union’s (EU) Platform Work Directive, which came into effect on December 1, 2024, has significant implications for companies operating in the gig economy. This directive imposes new obligations on companies that facilitate work through digital platforms, particularly in relation to the use of artificial intelligence (AI) tools and the classification of platform workers. While the directive is now in force, EU member states have until December 2, 2026, to implement it into national law and provide guidance on the classification of platform workers as independent contractors or employees.
One of the key aspects of the EU Platform Work Directive is its focus on AI regulations. Companies using automated decision-making or monitoring systems are required to provide notice to platform workers regarding the use of AI, including any changes that may affect working conditions. Human oversight of AI tools is also mandated, with regular evaluations of the impact of AI decisions on platform workers’ working conditions and equal treatment. Importantly, decisions to restrict, suspend, or terminate a platform worker’s contract must be made by a human being, and workers must have access to a designated contact person for explanations of decisions made by automated systems.
Health and safety considerations are also addressed in the directive, with requirements for companies to evaluate the risks posed by AI tools to platform workers’ safety and health. Companies are prohibited from using AI tools in a manner that puts undue pressure on workers or jeopardizes their physical and mental well-being. Additionally, the directive emphasizes the importance of information and consultation rights for platform workers’ representatives in relation to the introduction or changes in the use of AI tools.
Data privacy is another crucial aspect of the directive, with restrictions on the collection and processing of personal data by AI tools. Companies are prohibited from using AI to collect personal data while workers are not actively working, process emotional or psychological states, infer protected characteristics, or use biometric data for identification purposes. These measures aim to protect the privacy and rights of platform workers in the gig economy.
Misclassification of platform workers is also addressed in the directive, with a rebuttable presumption of employment for platform workers contracted on or after December 2, 2026. Member states are required to issue guidance on worker classification to help companies navigate this aspect of the directive. Companies must disclose information about platform work, including the number of workers, terms and conditions, average hours worked, and clients receiving platform work, to ensure transparency and compliance with the directive.
As EU member states work to implement the Platform Work Directive into national law over the next two years, companies operating in the gig economy will need to assess how these new regulations will impact their business models and take steps to ensure compliance. By understanding and adhering to the requirements of the directive, companies can protect the rights and well-being of platform workers while navigating the evolving landscape of the gig economy in the EU.
