In line with Article 154(2) of the Treaty on the Functioning of the European Union (TFEU), Social partners were invited to provide their responses by 7 April 2021 for a first phase of consultation.

Article 154(2) TFEU asks the Commission to consult the social partners before submitting proposals in the social policy field based on Article 153 TFEU. If social partners do not proceed with bipartite social dialogue and do not reach an agreement, the second stage of consultation will start, with a focus on the content of an initiative.

The EU Commission released a consultation document referring a number of areas for action, namely: employment status, working conditions, access to social protection, access to collective representation and bargaining, cross-border dimension of platform work, algorithmic management, and training and professional opportunities for people working through platforms.

On this basis the EU Commission asked social partners whether the possible areas of action have been correctly indicated and to what extend action shall be undertaken and for whom.

In its letter to the social partners, the EU commission asked also whether there is space for manoeuvre to initiate social dialogue under Article 155 TFEU on any of the issues identified.

According to the European Commission, “the COVID-19 crisis has aggravated the challenges faced by several people working through platforms. [...] Some categories of people providing high-skilled services online have benefitted from the platform model, in that they were still able to work and find new clients during lockdowns. The opportunities offered by the platforms have in fact helped many traditional businesses stay afloat during the confinement. However, because of reduced opportunities in ‘traditional’ labour markets, there might be more labour supply for digital labour platforms, potentially creating pressure on earnings and working conditions”.

“The sustainable growth of the platform economy therefore requires improved legal clarity for platforms and better working conditions for people working through platforms”.

For the purpose of this consultation, the following definition of platform work is indicated:

“According to Eurofound (2018), platform work is ‘a form of employment that uses an online platform to enable organisations or individuals to access other organisations or individuals to solve problems or to provide services in exchange for payment’. Eurofound states that the main characteristics of platform work are the following:

·       Paid work is organised through an online platform;

·       Three parties are involved: the online platform, the client and the worker;

·       The aim is to carry out specific tasks or solve specific problems;

·       The work is contracted out;

·       Jobs are broken down into tasks;

·       Services are provided on demand”.

Data gathered so far show that platform work is not widespread, but it is increasing.

“According to surveys by the Commission’s Joint Research Centre, 20 around 24 million people (or 11% of the EU’s workforce) are estimated to have provided services via on location or online labour platforms at least once. Out of these, 3 million (1.4%) do it as a main job, 9 million (4.1%) as a secondary source of income, almost 7 million (3.1%) as a marginal and more than 5 million (2.4%) as a sporadic source of income. Worldwide, the online labour platform market has been found to have grown by 30% over a period of two years”.

This consultation does not cover the conflict between EU competition law and collective rights of self-employed, including of the platform companies. The EU Commission is addressing this issue separately by means of a separate public consultation.

The World Employment Confederation, Europe (WEC - Europe), that is the voice of the employment industry at the European level, has been submitting its response to the consultation.  

“Online talent platforms can provide important opportunities of new solutions for companies and workers to offer services and organise work,” said Michael Freytag, World Employment Confederation-Europe’s Public Affairs Manager. “But it is important to ensure the appropriate protection of people working in platform work, taking account of their employment status.”

WEC-Europe “clearly sees the benefits for a continued dialogue, exchange and policy guidance at EU level on how to nourish the benefits of diverse forms of work, including working conditions in platform work, and to ensure a level-playing field for diverse forms of work. At the same time, given the diversity of online platform work, there cannot be a one-size-fits-all approach to regulation of platform work at EU level. Platform work as such is not a category of work, but rather a form of service delivery and an HR service provider, which can be based on and performed via all recognised types of contract or work relationships. The correct classification of labour suppliers at national level is key to ensure protection of people who work through platforms”.

WEC-Europe considers that “the existing regulatory framework should also be applied for online talent platforms, considering the fact that they can opt on a self-employment model or employ platform labour suppliers as workers in accordance with national law. For those online platforms that operate under and apply an employment relationship, there is already a comprehensive body of European and national law that is applicable”.

"Yet, correct application and enforcement needs to be stepped up”.

It added that since “the scope and the diversity of platform work providers and their services goes beyond the mandate of the sectoral social dialogue on temporary agency work”, WEC-Europe “does not intent to enter into formal negotiations with its sectoral social partner UNI-Europa on a legislative instrument on working conditions in platform work but will continue playing a key role in the policy debate at EU level”.

Similarly, in its response BUSINESSEUROPE said that “Platform work is a typical and positive example of the increasing diversity in the way we work. “Platform worker” is not a legal category and many contractual arrangements are covered in platform work, including employee, self-employed, fixed-term, part-time and agency work. Attention is unfortunately often on specific sectors or tasks, whereas it covers a wide range of sectors and occupations – from professional services including legal advice, translation, to cleaning, repair work and many more. This means that it offers a significant potential for integrating more people in the labour market and thereby increasing employment and growth”.

Avoidance for one-size-fits all model is also BUSINESSEUROPE view, “However, we agree that there is a need for action at the appropriate levels, to address the challenges related to working conditions in platform work, where they exist. EU, Member States, social partners, platforms themselves and those providing services through them should all play a role. In order to be successful, it must be done in a way that respects the different EU, national and social partner competences and the different national social and industrial relations systems, so that all can work together to make platform work safe for companies and workers whether as employees or self-employed”.

A successful approach includes improving of the functioning of the labour market, so that there is no obligation on the side of the worker to become self-employed, if this is not his/her wish. In some cases, clarification at the national level may be needed, but “it would not be possible or appropriate to tackle the classification through an EU directive”.

BUSINESSEUROPE concludes with fourteen proposals, including to “check the feasibility and value of facilitating a dialogue between different platform providers, to aim at developing principles for good quality platform work by way of a code of conduct/charter on relevant, commonly defined issues”.

From the trade union’s side, the European Trade Union Confederation (ETUC) replied to the Euroepan Commission with a proposal to introduce “A presumption of an employment status should be the starting point. It should be complemented by a reversal of the burden of the proof for platform companies seeking to establish that they are not the worker’s employer”.