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DRAFT REPORT (COM(2021)0762 – C90454/2021 – 2021/0414(COD))

On the proposal for a directive of the European Parliament and of the Council on improving working conditions in platform work

EMPL-PR-731497

Committee on Employment and Social Affairs · Rapporteur: Elisabetta Gualmini

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This is the rapporteur's draft report on the Commission proposal for a directive on improving working conditions in platform work. It proposes a rebuttable legal presumption of employment for platform work and rules on algorithmic management. It would extend transparency, human oversight and human review rules to all workers subject to automated or semi-automated monitoring and decision-making systems, not only platform workers. It requires Member States to have procedures to determine employment status correctly, to protect against misclassification, and to give labour inspectorates powers and targets for inspections. It bans processing of certain personal data, requires information and consultation of workers' representatives, and promotes collective bargaining and communication channels for platform workers. It requires platforms to declare work to labour, tax and social protection authorities, provides for subcontracting liability, dispute resolution, protection from adverse treatment and dismissal, and sanctions.

Committee position. The rapporteur proposes to amend the Commission proposal by introducing a rebuttable legal presumption of employment, extending algorithmic management rules to all workers subject to such systems, strengthening data protection, information and consultation rights, and adding enforcement and subcontracting liability provisions.

Key points

  1. The directive's purpose is to improve working conditions of persons performing platform work and of any other worker subject to automated or semi-automated monitoring and decision-making systems.
  2. Member States must have effective procedures to verify and ensure the correct determination of employment status, guided by facts including the use of algorithms.
  3. The contractual relationship between a digital labour platform and a person performing platform work is legally presumed to be an employment relationship, applicable in administrative and legal proceedings.
  4. Member States must take supporting measures, including guidance for authorities, strengthened inspections with annual national targets, automatic inspections after a reclassification, and training for labour inspectorates.
  5. The burden of proof that a relationship is not an employment relationship lies on the digital labour platform, and such proceedings have no suspensive effect.
  6. Digital labour platforms must inform workers, workers' representatives and labour inspectorates in advance about automated or semi-automated monitoring and decision-making systems, including goals, parameters and grounds for decisions.
  7. Platforms must not access, collect or process personal data not strictly necessary for the contract, including emotional, health, private conversation, special category data, and must not use biometric checks or constant video surveillance.
  8. Platforms must carry out data protection impact assessments, inform about data transfers, ensure data portability and other rights, and informed consent does not replace these obligations.
  9. Member States must ensure human oversight of decisions affecting working conditions, health and safety, and human review with explanations, contact persons and written statements of reasons.
  10. Workers' representatives must be informed and consulted on decisions introducing or changing automated systems, with expert assistance paid by the platform where it has more than 250 workers in a Member State.
  11. Platforms must declare work performed and employment status to labour, tax and social protection authorities, and Member States must apply effective and dissuasive sanctions, including licence suspension for persistent infringements.
  12. Member States must ensure access to dispute resolution, allow trade unions or representatives to act on behalf of platform workers, create communication channels, promote collective bargaining, and protect against adverse treatment and dismissal.

Who is affected

  • Digital labour platforms: must comply with the legal presumption, transparency, data protection, human oversight and declaration obligations.
  • Persons performing platform work: gain rights to correct employment status, information, human review, dispute resolution and protection from dismissal.
  • All workers subject to automated or semi-automated monitoring and decision-making systems: gain transparency, human oversight and review rights.
  • Member States: must establish procedures, inspections, sanctions and promote collective bargaining.
  • Workers' representatives and trade unions: gain rights to information, consultation, access to workers and to act on their behalf.

Figures and deadlines

  • More than 250 workers in a Member State: threshold for platform to bear expert costs in information and consultation.
  • One week: deadline for platform to respond to a request for review of a decision.
  • One month: deadline for platforms to respond to requests for additional clarifications from authorities or representatives.
  • At least once a year: frequency for platforms to inform and consult workers' representatives on automated systems.
  • Over 28 million people in the EU are involved in platform work, and by 2025 this number will rise to 43 million.

Legal basis: 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.