In the last plenary week of the EU Parliament in Strasbourg, the EU institutions finalised numerous important dossiers. These included an agreement on the regulation on artificial intelligence and an agreement on the Supply Chain Law. Moreover, a provisional agreement was reached between the EU Parliament and the Council on the directive to improve the working conditions of platform workers. This is a milestone for workers in the EU.

Platform work is not a new phenomenon. The COVID-19 crisis has led to lockdowns and official closures of shops and restaurants in many European Member States, including Austria. The social and de facto infrastructural relevance of the platform economy for the supply of everyday goods and services was thus once again clearly demonstrated. Platform workers often have to work under precarious conditions.

What was decided?
Until the very end, it was unclear what the EU Parliament and Council would agree on. Agreement on the most sensitive points is usually only reached at the end of such negotiations. Important steps have now been taken, such as the first EU regulation on dealing with algorithms in the workplace. Until now, platform workers have often not been given any information about how these algorithms are used and how they work. For example, algorithms make decisions about the payment of bonuses, on which many platform workers are financially dependent. The new directive requires platform companies to share this information with workers and their representatives, such as trade unions. Platform companies will also be required to assess the impact of decisions made or supported by automated monitoring and decision-making systems on working conditions, health and safety and fundamental rights.

In particular, the proposal addresses the employment status of platform workers. If two of five selected indicators are being met, an employment relationship is assumed and not, as previously, self-employment. Workers - and their representatives - have the option of informing the competent authorities if they suspect bogus self-employment. The platform company must then prove that it is not a dependent employment relationship. The burden of proof therefore lies with the platform company and not with the worker. Trade unions and collective bargaining are also seen as playing a central role in the developing platform economy.

From draft to directive
In December 2021, the European Commission presented a proposal for a directive based on a report. According to this report, of the 28 million people working on platforms, around 5.5 million people are misclassified as self-employed. This misclassification has a significant impact on individual workers and the world of work as a whole. Hard-won labour rights only apply selectively. AK has been warning about the consequences of this precarisation of work for years.

The draft submitted by the Commission was discussed in the European Parliament's Committee on Employment and Social Affairs (EMPL). MEPs formally adopted their mandate in February 2023, followed by the Council in June. The first trilogue negotiations began shortly afterwards in July. AK has been following the legislative process from the outset and highlighted the key points for workers. On 13 December, a provisional agreement was reached between the two institutions.

What are the next steps?
The agreed text must now be formally adopted by the EU Parliament and the Council in order to enter into force. Normally this is just a formality, but this dossier is extremely controversial among member states. The meeting of the Council will take place on 22 December and will be decisive for the future of platform workers.

Further information:
EU-Parliament: Platform work: deal on new rules on employment status
EU-Council: EU rules on platform work
Open Letter: Platform Work Directive trilogues: An opportunity to make a difference
ETUC: Platform deal should end ‘wild west’ in workers’ rights
AK EUROPA: Improving working conditions in platform work
A&W Blog: Höchste Zeit für faire Arbeit in der Plattformwirtschaft – (High time for fair labour in the platform economy) (German only)
AK EUROPA: Platform work digital and precarious
FEPS: The Platformisation of work in Europe