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DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the proposal for a directive of the European Parliament and of the Council improving working conditions in platform work
(COM(2021)0762 – C90454/2021 – 2021/0414(COD))
(Ordinary legislative procedure: first reading)
The European Parliament,
– having regard to the Commission proposal to Parliament and the Council (COM(2021)0762),
– having regard to Article 294(2) and Article 153(2), point (b), in conjunction with Article 153(1), point (b), and Article 16(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0454/2021),
– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
– having regard to Rule 59 of its Rules of Procedure,
– having regard to the opinion of the Committee on Transport and Tourism,
– having regard to the report of the Committee on Employment and Social Affairs (A9-0301/2022),
– having regard to the Commission Staff Working Document Impact Assessment Report (SWD(2021)0396);
1. Adopts its position at first reading hereinafter set out;
2. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Amendment 1
Proposal for a directive
Recital 1
Amendment 2
Proposal for a directive
Recital 2
Amendment 3
Proposal for a directive
Recital 3
Amendment 4
Proposal for a directive
Recital 3 a (new)
Amendment 5
Proposal for a directive
Recital 4
Amendment 6
Proposal for a directive
Recital 5
Amendment 7
Proposal for a directive
Recital 6
Amendment 8
Proposal for a directive
Recital 6 a (new)
Amendment 9
Proposal for a directive
Recital 7
Amendment 10
Proposal for a directive
Recital 8
Amendment 11
Proposal for a directive
Recital 9
Amendment 12
Proposal for a directive
Recital 9 a (new)
Amendment 13
Proposal for a directive
Recital 10
Amendment 14
Proposal for a directive
Recital 11
Amendment 15
Proposal for a directive
Recital 12
Amendment 16
Proposal for a directive
Recital 13
Amendment 17
Proposal for a directive
Recital 14
Amendment 18
Proposal for a directive
Recital 15
Amendment 19
Proposal for a directive
Recital 16
Amendment 20
Proposal for a directive
Recital 17 a (new)
Amendment 21
Proposal for a directive
Recital 17 b (new)
Amendment 22
Proposal for a directive
Recital 17 c (new)
Amendment 23
Proposal for a directive
Recital 18
Amendment 24
Proposal for a directive
Recital 18 a (new)
Amendment 25
Proposal for a directive
Recital 18 b (new)
Amendment 26
Proposal for a directive
Recital 18 c (new)
Amendment 27
Proposal for a directive
Recital 19
Amendment 28
Proposal for a directive
Recital 20
Amendment 29
Proposal for a directive
Recital 22
Amendment 30
Proposal for a directive
Recital 23
Amendment 31
Proposal for a directive
Recital 24
Amendment 32
Proposal for a directive
Recital 25
Amendment 33
Proposal for a directive
Recital 26
Amendment 34
Proposal for a directive
Recital 26 a (new)
Amendment 35
Proposal for a directive
Recital 26 b (new)
Amendment 36
Proposal for a directive
Recital 27
Amendment 37
Proposal for a directive
Recital 28
Amendment 38
Proposal for a directive
Recital 28 a (new)
Amendment 39
Proposal for a directive
Recital 30
Amendment 40
Proposal for a directive
Recital 30 a (new)
Amendment 41
Proposal for a directive
Recital 31
Amendment 42
Proposal for a directive
Recital 32
Amendment 43
Proposal for a directive
Recital 32 a (new)
Amendment 44
Proposal for a directive
Recital 32 b (new)
Amendment 45
Proposal for a directive
Recital 33
Amendment 46
Proposal for a directive
Recital 34 a (new)
Amendment 47
Proposal for a directive
Recital 35
Amendment 48
Proposal for a directive
Recital 36 a (new)
Amendment 49
Proposal for a directive
Recital 37
Amendment 50
Proposal for a directive
Recital 38
Amendment 51
Proposal for a directive
Recital 38 a (new)
Amendment 52
Proposal for a directive
Recital 38 b (new)
Amendment 53
Proposal for a directive
Recital 39
Amendment 54
Proposal for a directive
Recital 39 a (new)
Amendment 55
Proposal for a directive
Recital 40
Amendment 56
Proposal for a directive
Recital 41
Amendment 57
Proposal for a directive
Recital 42
Amendment 58
Proposal for a directive
Recital 42 a (new)
Amendment 59
Proposal for a directive
Recital 43
Amendment 60
Proposal for a directive
Recital 44
Amendment 61
Proposal for a directive
Recital 45
Amendment 62
Proposal for a directive
Recital 46
Amendment 63
Proposal for a directive
Recital 47
Amendment 64
Proposal for a directive
Recital 48
Amendment 65
Proposal for a directive
Recital 48 a (new)
Amendment 66
Proposal for a directive
Recital 49
Amendment 67
Proposal for a directive
Recital 51
Amendment 68
Proposal for a directive
Article 1 – paragraph 1
Amendment 69
Proposal for a directive
Article 1 – paragraph 2 – subparagraph 2
Amendment 70
Proposal for a directive
Article 2 – paragraph 1 – point 1 – point b
Amendment 71
Proposal for a directive
Article 2 – paragraph 1 – point 1 – point c
Amendment 72
Proposal for a directive
Article 2 – paragraph 1 – point 2
Amendment 73
Proposal for a directive
Article 2 – paragraph 1 – point 5
Amendment 74
Proposal for a directive
Article 2 – paragraph 1 – point 5 a (new)
Amendment 75
Proposal for a directive
Article 2 – paragraph 1 – point 5 b (new)
Amendment 76
Proposal for a directive
Article 2 – paragraph 1 – point 5 c (new)
Amendment 77
Proposal for a directive
Article 2 – paragraph 1 – point 5 d (new)
Amendment 78
Proposal for a directive
Article 2 – paragraph 1 – point 5 e (new)
Amendment 79
Proposal for a directive
Article 2 – paragraph 2
Amendment 80
Proposal for a directive
Article 3 – paragraph 1
Amendment 81
Proposal for a directive
Article 3 – paragraph 2
Amendment 82
Proposal for a directive
Article 3 – paragraph 2 a (new)
Amendment 83
Proposal for a directive
Article 3 – paragraph 2 b (new)
Amendment 84
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 1
Amendment 85
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 1 a (new)
Amendment 86
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 2
Amendment 87
Proposal for a directive
Article 4 – paragraph 2
Amendment 88
Proposal for a directive
Article 4 – paragraph 3 – introductory part
Amendment 89
Proposal for a directive
Article 4 – paragraph 3 – point b
Amendment 90
Proposal for a directive
Article 4 – paragraph 3 – point c
Amendment 91
Proposal for a directive
Article 4 – paragraph 3 – point c a (new)
Amendment 92
Proposal for a directive
Article 4 – paragraph 3 – point d
Amendment 93
Proposal for a directive
Article 4 – paragraph 3 – point d a (new)
Amendment 94
Proposal for a directive
Article 4 – paragraph 3 – point d b (new)
Amendment 95
Proposal for a directive
Article 4 – paragraph 3 – point d c (new)
Amendment 96
Proposal for a directive
Article 4 – paragraph 4
Amendment 97
Proposal for a directive
Article 5 – paragraph 1
(Paragraph 1 in the Commission text has become subparagraph 1 of paragraph 1 in Parliament’s amendment.)
Amendment 98
Proposal for a directive
Article 5 – paragraph 2
(Paragraph 2 in the Commission text has become subparagraph 2 of paragraph 1 in Parliament’s amendment.)
Amendment 99
Proposal for a directive
Article 5 – paragraph 3
(Paragraph 3 in the Commission text had become subparagraph 3 of paragraph 1 in Parliament’s amendment.)
Amendment 100
Proposal for a directive
Article 5 – paragraph 3 a (new)
Amendment 101
Proposal for a directive
Article 5 – paragraph 3 a – point a (new)
Amendment 102
Proposal for a directive
Article 5 – paragraph 3 a – point b (new)
Amendment 103
Proposal for a directive
Article 5 – paragraph 3 b (new)
Amendment 104
Proposal for a directive
Article 5 – paragraph 3 b – point a (new)
Amendment 105
Proposal for a directive
Article 5 – paragraph 3 b – point b (new)
Amendment 106
Proposal for a directive
Article 5 – paragraph 3 b – point c (new)
Amendment 107
Proposal for a directive
Article 5 – paragraph 3 b – point d (new)
Amendment 108
Proposal for a directive
Article 5 – paragraph 3 b – point e (new)
Amendment 109
Proposal for a directive
Article 5 – paragraph 3 b – point f
Amendment 110
Proposal for a directive
Article 5 – paragraph 3 b – point g
Amendment 111
Proposal for a directive
Article 5 – paragraph 3 b – point h
Amendment 112
Proposal for a directive
Article 5 – paragraph 3 c (new)
Amendment 113
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 1
Amendment 114
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 1 – point a
Amendment 115
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 1 – point b
Amendment 116
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 1a (new)
Amendment 117
Proposal for a directive
Article 6 – paragraph 2 – point a – point ii
Amendment 118
Proposal for a directive
Article 6 – paragraph 2 – point a – point ii a (new)
Amendment 119
Proposal for a directive
Article 6 – paragraph 2 – point a – point ii b (new)
Amendment 120
Proposal for a directive
Article 6 – paragraph 2 – point b – point iii
Amendment 121
Proposal for a directive
Article 6 – paragraph 2 – point b – point iv
Amendment 122
Proposal for a directive
Article 6 – paragraph 2 a (new)
Amendment 123
Proposal for a directive
Article 6 – paragraph 3
Amendment 124
Proposal for a directive
Article 6 – paragraph 4
Amendment 125
Proposal for a directive
Article 6 – paragraph 5 – point a
Amendment 126
Proposal for a directive
Article 6 – paragraph 5 – point c
Amendment 127
Proposal for a directive
Article 6 – paragraph 5 – point c a (new)
Amendment 128
Proposal for a directive
Article 6 – paragraph 5 – point d a (new)
Amendment 129
Proposal for a directive
Article 6 – paragraph 5 – point d b (new)
Amendment 130
Proposal for a directive
Article 6 – paragraph 5 – point d c (new)
Amendment 131
Proposal for a directive
Article 6 – paragraph 5 – point d d (new)
Amendment 132
Proposal for a directive
Article 6 – paragraph 5 – subparagraph 1 a (new)
Amendment 133
Proposal for a directive
Article 6 – paragraph 5 a (new)
Amendment 134
Proposal for a directive
Article 6 – paragraph 5 b (new)
Amendment 135
Proposal for a directive
Article 6 – paragraph 5 c (new)
Amendment 136
Proposal for a directive
Article 6 a (new)
Amendment 137
Proposal for a directive
Article 7 – title
Amendment 138
Proposal for a directive
Article 7 – paragraph -1 (new)
Amendment 139
Proposal for a directive
Article 7 – paragraph 1
Amendment 140
Proposal for a directive
Article 7 – paragraph 2 – subparagraph 1 – point a
Amendment 141
Proposal for a directive
Article 7 – paragraph 2 – subparagraph 1 – point a a (new)
Amendment 142
Proposal for a directive
Article 7 – paragraph 2 – subparagraph 1 – point c
Amendment 143
Proposal for a directive
Article 7 – paragraph 2 a (new)
Amendment 144
Proposal for a directive
Article 7 – paragraph 2 b (new)
Amendment 145
Proposal for a directive
Article 7 – paragraph 2 c (new)
Amendment 146
Proposal for a directive
Article 7 – paragraph 3
Amendment 147
Proposal for a directive
Article 7 – paragraph 3 a (new)
Amendment 148
Proposal for a directive
Article 8 – title
Amendment 149
Proposal for a directive
Article 8 – paragraph 1 – subparagraph 1
Amendment 150
Proposal for a directive
Article 8 – paragraph 1 – subparagraph 2
Amendment 151
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1
Amendment 152
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 2
Amendment 153
Proposal for a directive
Article 8 – paragraph 3
Amendment 154
Proposal for a directive
Article 8 – subparagraph 4
Amendment 155
Proposal for a directive
Article 9 – paragraph 1
Amendment 156
Proposal for a directive
Article 9 – paragraph 2
Amendment 157
Proposal for a directive
Article 9 – paragraph 2 a (new)
Amendment 158
Proposal for a directive
Article 9 – paragraph 3
Amendment 159
Proposal for a directive
Article 9 – paragraph 3 a (new)
Amendment 160
Proposal for a directive
Article 10 – paragraph 1
Amendment 161
Proposal for a directive
Chapter III a (new) – title
Amendment 162
Proposal for a directive
Article 10 a (new)
Amendment 163
Proposal for a directive
Article 11 – paragraph 1
Amendment 164
Proposal for a directive
Article 12 – paragraph 1
Amendment 165
Proposal for a directive
Article 12 – paragraph 3
Amendment 166
Proposal for a directive
Article 12 a (new)
Amendment 167
Proposal for a directive
Article 12 b (new)
Amendment 168
Proposal for a directive
Article 13 – paragraph 1
Amendment 169
Proposal for a directive
Article 13 – paragraph 1a (new)
Amendment 170
Proposal for a directive
Article 14 – paragraph 1
Amendment 171
Proposal for a directive
Article 14 – paragraph 2
Amendment 172
Proposal for a directive
Article 14 – paragraph 2 a (new)
Amendment 173
Proposal for a directive
Article 14 – paragraph 2 b (new)
Amendment 174
Proposal for a directive
Article 15 – title
Amendment 175
Proposal for a directive
Article 15 – paragraph 1
Amendment 176
Proposal for a directive
Article 15 – paragraph 1 a (new)
Amendment 177
Proposal for a directive
Article 16 – paragraph 1
Amendment 178
Proposal for a directive
Article 17
Amendment 179
Proposal for a directive
Article 18 – paragraph 1
Amendment 180
Proposal for a directive
Article 19 – paragraph 1
Amendment 181
Proposal for a directive
Article 19 – paragraph 2
Amendment 182
Proposal for a directive
Article 19 – paragraph 3
Amendment 183
Proposal for a directive
Article 19 – paragraph 3 a (new)
Amendment 184
Proposal for a directive
Article 19 – paragraph 3 b (new)
Amendment 185
Proposal for a directive
Article 20 – paragraph 2
Amendment 186
Proposal for a directive
Article 20 a (new)
EXPLANATORY STATEMENT
Platform work is one of the key transformations that digital technologies are bringing to labour markets across the world. Several sectors are shifting to the labour platform economy, from transportation to proximity services to creative industries. The Covid-19 pandemic accelerated this trend, promoting sectors that were already moving towards platform work such as food delivery. Data reflects such a trend: according to the Commission estimates, over 28 million people in the EU are involved in platform work, and by 2025 this number will rise to 43 million.
The flexibility and exponential growth of platform work however risk, without proper regulation of the phenomenon, to bring about precarious working conditions, at the expenses of the people performing that work. Evidence across the EU shows that people performing platform work often do not enjoy the same rights as workers in the traditional economy, as they are even not recognised as such, even if facts would prove it and, because of the conditions raising for platform work organisation, involving algorithmic management, are particularly subject to exploitation. Therefore, this Directive aims at ensuring that developments brought about by new technologies do not hamper the rights that workers in the EU rightly obtained over the past decades.
Employment status
First of all, the employment status of people performing platform work too often does not match their working conditions. The misclassification of the employment relationship has been a major driver of Court cases across the EU, trying to determine the appropriate employment status of workers on the basis of their tasks and the degree of control and supervision that the platform exercises on them. Most Courts found that the workers under trial were bogus self-employed, meaning that they signed a self-employment contract with the labour platform, but they - as a matter of fact - were proven to have the working conditions of an employment relationship. Facts were therefore telling a different story from the formal relationship between them and the platform. Bogus self-employment combines the worst of both worlds, as those people do not enjoy the independence of self-employment in determining their clients, pay and work organisation, but still carry the business risk of the labour platform while not enjoying the rights and protection assigned to workers in an employment relation. The issue of misclassification is a concern as well for the level-playing field in the Single Market, as platforms making use of bogus self-employment incur in lower labour costs than their competitors, using a legal vacuum in the regulation of platform work. It is important to note that platform work is a complex phenomenon, and many people performing platform work, especially among the high skilled ones, are correctly classified as self-employed. The purpose of the first part of this directive and draft report is therefore to avoid misclassification of the employment status of people performing platform work. In light of that risk, introducing a rebuttable legal presumption of the employment relation is the best way to address the issue in order to protect workers’ rights and provide them with the appropriate employment status, while not touching at the genuine self-employed. At the same time, this will ensure the respect on behalf of the platforms of fiscal duties and social security schemes in case they are recognized as employers, while providing for fair competition in the Union. In order not to introduce discrimination among comparable businesses and to ensure that the Directive reaches its objectives and is properly enforced, it is essential that the definition of digital labour platform mirrors the effective reality and variety of platforms.
Bogus self-employment in the platform economy leads to precariousness, low pay, security risks, and the denial of all the rights stemming from the employment status, social protection included. Often workers taking up these jobs come from vulnerable backgrounds and absolutely need the extra income because their first job does not pay enough, and they do not even dare questioning their employment status.
Authorities applying the legal presumption will receive appropriate guidance and Member States will establish procedures in order to identify swift and smooth processes, reduce litigation while avoiding capturing the genuine self-employed. Labour inspectorates or organisations enforcing labour law will receive adequate trainings in the relevant technological field, allowing them to effectively fulfil their duties. The possibility to rebut the legal presumption will always be assured to platforms challenging it and the burden of the proof will consequently be on them. The final judgement will be based on facts and not on formalities. This procedure is the most effective and fair because the worker is the weakest side in the litigation, and the full knowledge of the business model and the functioning of the algorithm is in the hands of the platforms.
Algorithmic management
While across the EU collective bargaining or labour regulations set the labour standards in the traditional economy, people performing platform work accept working conditions unilaterally set by platforms through automated and semi-automated monitoring and decision-making systems, and are sometimes not even in the situation to recognise an abuse. Indeed, they are not aware of the functioning of the algorithm and the decisions it takes regarding their working time, the clients they are assigned, the evaluation of their performance, their health and security guarantees and even access to work. As of today, the majority of platforms employ little human oversight of the decisions taken by their algorithm and there are no uniform and clear provisions determining control on compliance of those systems neither with data protection regulations, nor with respect to their impact on health and safety. Moreover, algorithmic management is not an issue regarding exclusively digital labour platforms, as more and more employers today adopt algorithmic tools to supervise, monitor and control workers. That is the reason why a rich chapter of the Report is dedicated to establish a set of rules protecting all workers from abusive algorithmic management practices throughout the Union.
It appears immediately clear how this chapter is highly relevant not only for people performing platform work (independently of their employment status) but for every worker whose working conditions are affected by those systems. Indeed, the pandemic has even accelerated the so called phenomenon of “platformisation” of the economy, which refers to the increasing use of those systems in order to organise and control work also far beyond platform business. The provisions introduced in this section applies therefore to all workers affected by automated or semi-automated monitoring and decision-making systems information. Workers dealing with algorithmic management and their representatives have to be informed in advance of all elements affecting working conditions and health and security at work, so as to give them the opportunity to understand the functioning of the algorithm and to collectively bargain on it. All decisions impacting on those terms are to be taken by human beings, and, in parallel, human oversights on decisions taken by the algorithm has to be granted. At the same time, platforms have to guarantee that the protection of data of people performing platform is fully respected and that the algorithm does not access or collect data which are not primarily linked to the performance of work.
Transparency and remedies concerning platform work
The sparse nature of platform work makes it difficult for platform workers to come together and act collectively to improve their situation. Unionising has been actively discouraged by some labour platforms who depend on bogus self-employment for their business model.
Platform work is then a very difficult phenomenon to capture as there is no evident workplace and very often persons working for the same platform are not aware of each other. This constitutes an issue not only for those people but also for national authorities, especially tax and social protection public institutions. Once the employment relationship is recognised as subordinate employment, the platform will be recognised as undertaking and therefore all applicable legislation and provisions stemming from collective agreements linked to the sector of activity will apply. Indeed, the last part of the draft Report is focused on transparency in platform work and remedies, which are needed in light of the above-mentioned nature of platform work.
5.10.2022
OPINION OF THE COMMITTEE ON TRANSPORT AND TOURISM
for the Committee on Employment and Social Affairs
on the proposal for a directive of the European Parliament and of the Council on improving working conditions in platform work
(COM(2021)0762 – C90454/2021 – 2021/0414(COD))
Rapporteur for opinion:Karima Delli
SHORT JUSTIFICATION
PROCEDURE – COMMITTEE ASKED FOR OPINION
FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION
PROCEDURE – COMMITTEE RESPONSIBLE
FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE