EU Introduces New Protections for Platform Workers

The EU Council has introduced new regulations aimed at improving working conditions for individuals engaged in digital labour platforms across the EU. The Directive on enhancing working conditions in platform work, known as the “Platform Work Directive,” was published in the Official Journal in late November of the previous year. EU member states, including Ireland, have until 2nd December 2026 to incorporate the Directive into national law. The EU is the first global legislator to propose specific regulations for digital labour platforms.

What is Platform Work?

Platform work refers to a type of employment where Organisations or individuals use an online platform to connect with others for solving particular problems or providing specific services in exchange for payment. During the COVID-19 pandemic, platform work became more mainstream, especially with the rise in food and grocery deliveries. Platform work is also sometimes referred to as the ‘gig economy.’ While digital platforms have benefited both businesses and consumers, they have also led to the emergence of ambiguous issues, particularly regarding employment status.

What is the Platform Work Directive Aiming to Achieve?

The Platform Work Directive focuses on two primary objectives:

1. It helps define the proper employment status of individuals working for digital platforms.
2. It establishes the EU’s first set of rules for the use of algorithmic systems in the workplace.

Employment Status

The Directive aims to accurately determine the employment status of people working for platforms, allowing them to access relevant employment rights. Member States will need to establish a legal presumption of employment within their legal frameworks when specific conditions indicating control and direction are met. The burden of proof lies with the platform to prove that there is no employment relationship.

The Irish Supreme Court also focused on “direction and control” in its judgment in the case of The Revenue Commissioners v Karshan (Midlands) Limited t/a Domino’s Pizza. It will be interesting to note how the Platform Work Directive’s provisions on employment status will interact with the Supreme Court’s five step test in determining an individual employment status, which has also been incorporated into the Irish Code of Practice on Determining Employment Status.

Regulating Algorithmic Management

The Directive also ensures that workers are well-informed about the use of automated systems that monitor and make decisions regarding their recruitment, work conditions, earnings, and other employment-related matters. It prohibits the use of automated systems for processing certain personal data of platform workers, such as biometric data or information about their emotional or psychological state. Furthermore, the Directive guarantees human oversight of automated decisions, including the right to have those decisions explained and reviewed.

Which Employers/Platforms are Covered by the Directive?

The Platform Work Directive applies to ‘digital labour platforms’ that organise platform work in the EU, regardless of their location or applicable laws. A digital labour platform is defined as a person or entity that provides a service meeting all the following criteria:

1. The service is provided, at least partly, electronically, such as through a website or mobile app.
2. The service is provided at the request of the recipient.
3. The service involves organising work carried out by individuals in exchange for payment, whether the work is done online or in a specific location.
4. The service uses automated monitoring or decision-making systems.

What Should Organisations Do to Prepare for the Directive?

Organisations should first determine if their operations fall within the scope of the Platform Work Directive. Those that use platform work as a primary or supplementary business model should familiarise themselves with the relevant provisions, particularly those concerning employment status, data processing restrictions, and algorithmic management obligations.