The rise of non-standard jobs in the digital age has brought about significant changes in the world of work. With increasing digitalization and the emergence of new business models, more and more people are turning to digital labour platforms for employment opportunities. According to data from the European Union, over 28.3 million individuals were working for digital platforms in 2022, and this number is expected to reach 43 million by 2025.
Out of the total number of people working for these platforms, a staggering 93% are currently classified as self-employed. However, there are concerns that around five million of these individuals may have been misclassified. This misclassification leaves workers vulnerable and without the necessary protections that traditional employees enjoy.
In response to these challenges, the European Union has taken steps to address the working conditions of gig economy workers through the EU platform workers directive. This directive, which was approved by Parliament in April 2024, aims to correct the employment status of misclassified workers, improve transparency, and regulate the use of algorithms and data in decision-making processes related to platform workers.
Under the new law, platform workers will be entitled to all the employment rights they deserve, and bogus self-employment claims will be rectified. National rules will be established in all EU countries to ensure that platform workers who are under the de facto direction and control of platforms are recognized as employees. Platforms will have the opportunity to challenge this presumption, but they must provide evidence to support their claim of no employment relationship.
One key provision of the directive is that platform workers cannot be dismissed based on decisions made by algorithms or automated systems. Human oversight and supervision will be required for decisions that impact workers’ working conditions. Additionally, platforms will be prohibited from processing certain types of personal data, such as private communications and personal beliefs, without consent.
In 2019, the EU introduced minimum rights for all employees, including those in atypical contracts and non-standard jobs like gig economy workers. These rights aimed to protect workers by ensuring transparent and predictable working conditions, free mandatory training, and limits on working hours and probationary periods.
Moving forward, the platform work directive will need approval from the Council before it can be fully implemented. Once approved by both institutions, EU countries will have two years to align their national legislation with the directive.
Overall, the EU’s efforts to improve workers’ rights in the gig economy and non-standard jobs demonstrate a commitment to ensuring fair and equitable working conditions for all individuals in the digital age. By addressing issues of misclassification, transparency, and algorithmic decision-making, the EU is taking proactive steps to protect the rights and well-being of platform workers.
