The European Parliament and Council have reached a historic agreement, enacting a new directive aimed at strengthening the protections for workers employed in digital platforms in Europe. Initially presented by Commissioner for Social Affairs Nicolas Schmit, the proposal signifies a paradigm shift, now recognizing as full-fledged employees those who were previously classified as freelancers. This change aims to significantly enhance the social security protection for these workers, who constitute a growing segment of the professional landscape.
The new regulations, subject to the agreement between European institutions, introduce a presumption of an employment relationship triggered when at least two of the five specific indicators are present. This presumption can be activated autonomously by the worker, their representatives, or competent authorities and can only be refuted if the platform demonstrates that the contractual relationship is not a fully-fledged employment.
In a significant step, the directive also regulates the use of algorithms in work-related decisions, a crucial aspect given that millions of individuals employed by various digital platforms such as Uber and Deliveroo may currently be incorrectly classified as freelancers.
The European Union estimates that out of 30 million people working for 500 digital platforms, approximately 5.5 million fall into this category.
The proposal mandates platforms to provide information on the algorithms guiding operational decisions, a significant stride towards ensuring greater transparency. Furthermore, the directive prohibits platforms from delegating the decision to terminate collaboration with an individual to computer programs.
Despite acknowledging this agreement as a significant advancement, concerns persist regarding the financial impacts on platforms. Estimated to incur an annual cost increase of up to 4.5 billion euros, according to a 2021 impact assessment, the question remains open on how the directive will be transposed into national law without losing effectiveness and substance.
In any case, the text represents a milestone in addressing emerging challenges related to digital employment and the protection of workers’ rights.
