European platform workers become employees in most cases. After months of difficult negotiations, the European Parliament and the EU member states reached an agreement. For example, meal deliverers or Uber drivers will soon no longer be self-employed, but will count as employees.
The European Commission presented the potentially very drastic bill two years ago. The aim of the proposal is to improve the working conditions of platform workers. The member states had already agreed on the law in June, after which an agreement still had to be reached with the European Parliament.
Of the 28 million platform workers in the EU, the majority are formally self-employed. At least 5.5 million of these are wrong, according to the Commission. In practice, many platform workers have to adhere to the same rules as salaried employees. While, for example, they cannot claim vacation days or pension. Over the past decade, disputes over the employment status of platform workers have been fought out in court several times.
Five characteristics
The Commission formulated five characteristics that indicate that a platform worker is employed by the company. For example, unilaterally imposing the rate and limiting the ability to refuse tasks. The agreement now stipulates that the platform worker will be given the employment status of ’employee’ if at least two of the five characteristics exist. Member States may add other characteristics to the list on their own initiative.
The agreement also sets rules for the use of algorithm systems by digital labor platforms such as Uber and Deliveroo. Digital labor platforms regularly use workforce management algorithms. Employees therefore face a lack of transparency about how personal data is used and how decisions are made.
From now on, employers must inform their employees about the use of automated personnel systems. In addition, employers are no longer allowed to process data about platform workers such as mental health, religious beliefs or ethnic background in these systems. Qualified personnel must also monitor the systems to ensure they comply with employment requirements.
Green Left MEP Kim van Sparrentak, negotiator on behalf of the European Greens, calls these rules “a global first” for broader legislation for personnel management via algorithms. The agreement is therefore “a blueprint for rules on artificial intelligence and work, which we need for the entire labor market.”
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