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European Union: Council confirms agreement on platform workers

  • On 11 March 2024, European Union (EU) employment and social affairs ministers confirmed the provisional agreement on the platform work directive reached on 8 February 2024 between the Council's presidency and the European Parliament's negotiators.
  • The agreement sets a precedent for regulating algorithmic management and ensuring fair labour practices in the digital labour market.

After long and troubled negotiations, which we have recounted step by step in our previous editions, an agreement on the proposed directive has finally been reached.

As we have already reviewed, the agreement mainly aims at clarifying the employment status of platform workers, ensuring fair working conditions and promoting social protections as part of a collective effort to adapt labour laws to the realities of the digital era, balancing innovation with workers' rights.

The agreement introduces the legal presumption of employment that aims to define the employment status of platform workers and address the classification dispute.

In addition, it imposes higher transparency in using algorithms for human resources management, allowing workers to challenge automated decisions.

Before the decisive meeting on the directive, BusinessEurope expressed significant concerns, particularly regarding the presumption of employment and potential additional regulatory burdens for the sector. Markus J. Beyrer, Director General of BusinessEurope, emphasised that the proposed presumption of employment principle and the accompanying regulatory challenges, such as disclosure requirements, impact assessments and oversight of algorithmic management systems, remain significant concerns for the industry.

BusinessEurope calls for the legal presumption of employment to be in accordance with the principles of proportionality and subsidiarity and suggests that Member States may suspend it when a platform's employment status classification is challenged.

This position underlines the need for a balanced approach that respects the dynamics of the digital labour market while ensuring the protection of platform workers.

The text of the agreement will be formally adopted, and member states will have two years to incorporate the provisions of the directive into their national legislation.