EU: Platform Workers Directive agreed

EU Ministers agreed a Platform Workers Directive without French and German support.The law will impact both digital companies and traditional firms utilizing digital channels to employ workers.

Why it matters: This directive will have far-reaching effects beyond just companies like Uber and Deliveroo. It will also impact traditional companies that use digital channels to employ workers. Expect an expansive interpretation of the provisions, leading to scope creep.

The big picture: There are three pillars to this directive. Firstly, it requires Member States to embed a "presumption of employment" into their national laws, shifting the burden of proof onto platforms. Secondly, it outlines data protection regulations regarding the collection and processing of worker data. Thirdly, it mandates that platforms inform and consult with workers regarding the use of AI and algorithms in HR decision making.

What's next: Once ratified by the European Parliament and published in the official journal of the EU, Member States will have two years to transpose the directive into national law. After the June European Parliament elections, the provisions on data protection and AI will likely serve as the basis for a broader "AI in the Workplace" Directive.

ADDITIONAL MATERIAL

The three “pillars” to this Directive: 

First, it requires Member States to embed a “presumption of employment” into their national laws whereby if the issue is raised, a platform worker will be presumed to be employed unless the platform can prove otherwise. The criteria to be used to determine employment status will be those to be found in national laws and/or practice, or in collective agreements. This means that criteria will differ from country to country.

Second, there are extensive references to the General Data Protection Regulation (GDPR) scattered across the Directive. They make it clear which data can and cannot be collected and processed by platforms about the workers they engage.

Third, platforms will be obliged to inform and consult with workers, or their representatives, on the use on AI/algorithms in human resource decision making. Critical decisions will need to be made by a human being, and workers will have the right to engage with a human being if a decision adversely impacts them. 

• See this excellent summary from Lewis Silkin LLP: here. 
• Also see latest BEERG Byte podcast (below) featuring a discussion with Lewis Silkin’s Colin Lecky 

This is one of the issues we will be examining in depth at our April training program in Sitges.