The latest developments on the Platform Directive
Written By
Associate
Germany
I am an associate in our International HR Services team in Düsseldorf, where I provide our domestic and international clients with advice on all aspects of individual and collective employment law.
The provisional agreement reached in the trilogue negotiations on a directive on platform work between the European Commission, the European Parliament and the Spanish Council Presidency failed to achieve the required qualified majority in the Committee of Permanent Representatives (Coreper) on 22 December. New negotiations have been underway since 1 January 2024, but now under the Belgian Council Presidency instead of the Spanish Presidency.
What is it about?
In platform work, also known as "crowdworking", work assignments are distributed by a digital work platform to individual external workers, who then have to complete them on a computer or at a specific location. These workers are either self-employed or employed by the platform itself. Well known platforms include Lieferando, Uber and Fiverr.
Since December 2021, efforts have been made to reach an agreement for a Platform Directive. The Commission aims to improve working conditions for platform workers, increase the protection of personal data while increasing the transparency of platform work and ensuring a balance between flexibility and social protection. In a statement, Commission President Ursula von der Leyen emphasised the need to "support innovative forms of work without neglecting workers' rights".
Point of contention
One of the central discussions concerns the categorisation of platform workers as self-employed entrepreneurs or employees. The classification as an employee of the platform would have farreaching consequences, particularly regarding social security and occupational health and safety issues.
The basis for classification as a self-employed person or employee should be a legal presumption of employment. The point of contention here is the way in which the presumption is triggered and how it can be rebutted. The Commission originally proposed that the presumption would be triggered if two out of five criteria were met. The Council increased this to three out of seven criteria. Parliament, on the other hand, wanted to remove the criteria altogether and focus on the actual working conditions.
The draft agreed by Parliament and the Council under the Spanish Council Presidency included the solution that employees are legally regarded as employees of a platform if their relationship with the platform fulfils at least two of the five criteria mentioned.
Petition of the "Freelance Movement"
Following this agreement, the trade association "Freelance Movement" launched a petition for which more than 11,000 signatures were collected. It criticises the fact that many platform workers do not want to be classified as employees. Freelancers are all about retaining their flexibility.
What happens next?
Negotiations are continuing. Various interest groups, including trade unions, company representatives and platform operators, are involved in the discussion process. The Commission is aiming to present its proposals by the summer, followed by further consultations and the goal of adopting concrete measures by the end of the year.
These developments mark a significant step towards comprehensive regulation of platform work in the European Union and demonstrate the Commission's commitment to creating fair conditions in an ever changing world of work.
