Gig Economy: Directive comes into force

Key Facts:  The EU Platform Work Directive entered into force on December 1, 2024, with member states required to implement it by December 1, 2026. Spain's "Riders Law" of 2021 already implements many of its provisions, particularly regarding employment status of platform workers. Glovo's recent compliance in Spain is costing its parent company €100m in 2025 core profit.

Why This Matters:  The Directive signals a fundamental shift in platform work regulation across the EU. Its provisions on algorithmic management and worker representation extend beyond traditional gig economy platforms. The financial impact on Glovo demonstrates the significant business implications of reclassifying workers.

What Happens Next: Member states will begin drafting national legislation to comply with the Directive. The incoming EU Commission may introduce additional "AI in the Workplace" regulations. Market leaders are already adapting, as shown by Evri's proactive approach in the UK, introducing sick pay and holiday support payments for self-employed couriers. Organizations should:

• Review current worker classification systems
• Assess algorithmic management practices
• Evaluate financial implications of potential worker reclassification

ADDITIONAL INFORMATION:

EU Directive on improving working conditions in platform work, Directive (EU) 2024/2831 

A useful summary of the Directive can be found in this article from the law firm, Freshfields.