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 the European Union, over 28.3 million individuals were working for digital platforms in the EU 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 EU has introduced the platform workers directive to address the issues faced by gig economy workers. In April 2024, the European Parliament voted in favor of new rules aimed at improving the working conditions of platform workers. The directive seeks to correct the employment status of those who have been misclassified, enhance 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 will be required to provide evidence to support their claim.
Moreover, the directive prohibits platform workers from being dismissed based on decisions made by algorithms or automated systems. Human oversight and supervision will be mandatory for decisions affecting workers’ conditions. Additionally, platforms will be prohibited from processing certain types of personal data, such as private communications and personal beliefs, without consent. Workers must be informed about the use of algorithms and automated systems in decisions regarding their recruitment, working conditions, and earnings.
In 2019, the European Parliament adopted new rules to enhance workers’ rights in the gig economy, providing minimum rights for all employees, including those in atypical contracts and non-standard jobs. These measures 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 was approved by the European Parliament in April 2024, and it now awaits approval from the Council. Once both institutions have formally approved the directive, EU countries will have two years to align their national legislation with the new rules.
Overall, the EU’s efforts to improve workers’ rights in the digital age demonstrate a commitment to ensuring fair and equitable treatment for all individuals in non-standard employment arrangements. By addressing the challenges faced by platform workers and implementing regulations to protect their rights, the EU is taking proactive steps to create a more inclusive and supportive work environment for all.
