Platform Work Directive

Directive on Improving Working Conditions in Platform Work

Overview

The Platform Work Directive addresses the working conditions of people performing platform work (gig workers). It establishes rules on employment status determination, algorithmic management transparency, and enhanced data protection for platform workers.[1]

Member States must transpose the Directive into national law by December 2, 2026.

Scope

Who is Covered?

  • Platform workers: People performing work organized through digital labor platforms
  • Digital labor platforms: Services that use automated systems to match workers with tasks

Examples of Platform Work

  • Ride-hailing (Uber, Bolt)
  • Food delivery (Deliveroo, Wolt)
  • Freelance marketplaces (Fiverr, Upwork)
  • Household services (cleaning, repairs)
  • Professional services platforms

Employment Status (Chapter II)[2]

Legal Presumption

Member States must establish a legal presumption of employment relationship when the platform:

  • Determines upper limits of remuneration
  • Requires specific appearance or conduct
  • Supervises performance through electronic means
  • Restricts freedom to organize work
  • Restricts ability to build client base

The platform bears the burden of proving no employment relationship exists.

Implications

If classified as employee:

  • Access to minimum wage
  • Working time limits
  • Paid leave entitlements
  • Social security coverage
  • Collective bargaining rights

Algorithmic Management (Chapter III)[3]

Transparency Requirements

Platforms must inform workers about:

InformationWhen
Automated monitoring systemsBefore work begins
Automated decision-makingBefore work begins
Evaluation criteriaBefore work begins
Main parameters for decisionsBefore work begins
Reason for specific decisionsUpon request

Prohibited Practices

Platforms may not process through automated systems:

  • Emotional or psychological state
  • Political opinions or union membership
  • Racial or ethnic origin
  • Migration status
  • Health data (except legal requirements)
  • Biometric data for identification

Human Oversight

Platforms must:

  • Evaluate impact of automated decisions on workers
  • Have qualified staff to oversee automated systems
  • Ensure human review of significant decisions
  • Never dismiss/terminate based solely on automated decision

Worker Rights

  • Explanation: Right to obtain explanation of automated decisions
  • Review: Right to request human review
  • Rectification: Right to correct inaccurate data
  • Compensation: Right to compensation for algorithm-caused detriment

Data Protection (Chapter IV)

DPIA Requirements

Platforms must conduct Data Protection Impact Assessments for:

  • Automated monitoring systems
  • Automated decision-making systems
  • Any high-risk processing of worker data

Workers must be consulted and given access to assessment results.

Processing Limitations

Personal data may only be processed if:

  • Strictly necessary for contract performance
  • Required for legal obligations
  • Necessary for legitimate interests (balanced against worker rights)

Data Retention

Worker personal data must be deleted when:

  • No longer necessary for stated purpose
  • Worker requests deletion (where applicable)
  • Employment/engagement relationship ends

Platform Obligations

Information to Workers

Before engagement, platforms must provide:

  • Information on automated systems used
  • Conditions and grounds for termination
  • Any algorithm-affecting changes (with advance notice)

Information to Authorities

Platforms must declare platform work to:

  • Labor authorities
  • Social security institutions
  • Worker representatives (number and status of workers)

Penalties

Member States determine penalties, which must be effective, proportionate, and dissuasive.

May include administrative fines, operating restrictions, and license suspension.

Developer Implications

If you build or operate platform systems:

Algorithmic Transparency

  • Document automated monitoring systems
  • Create explainability mechanisms for decisions
  • Build worker information dashboards
  • Implement human review workflows

Data Protection

  • Conduct DPIA for worker monitoring systems
  • Implement data minimization
  • Remove prohibited data processing
  • Create worker data access mechanisms

System Design

  • Enable human override of automated decisions
  • Log all automated decisions affecting workers
  • Build appeal and review mechanisms
  • Implement regular impact evaluations

Sources & References

[1]
Directive (EU) 2024/2831 on improving working conditions in platform work. EUR-Lex: PWD Official Text
[2]
PWD Chapter II: Employment status. EC: Platform Work
[3]
PWD Chapter III: Algorithmic management. EC: Algorithmic Management