June 2023 - EU - Ministers agree on the draft platform workers directive

EU labor ministers endorsed an agreement on the draft Platform Workers Directive.

They agreed on the position that the Member States would defend in the legislative negotiations with the European Parliament. The step taken on June 12 will allow the countries to start talks with the Parliament.

At the core of the controversy, was the legal presumption of employment that is set to reclassify the ‘bogus’ self-employed, under certain conditions.

The text includes seven criteria to determine whether the employees of digital platforms are effectively employed by others rather than self-employed. The employees will be considered employed if at least three criteria are met.

Among the seven criteria are that companies set maximum limits on the amount of money workers can receive, restrictions on their ability to refuse work, and rules that govern their appearance (for example, uniforms with company logos) or their conduct, as indicated by the Council. Also included among the criteria is that the digital platform monitors work performance electronically, does not allow employees to organize their absences and work hours, or uses subcontractors or substitutes. Likewise, it is included that the company restricts the possibility of the employee building a customer base or working for other companies.

If, from these criteria, it is deduced that the worker is an employee and the company does not agree, it will have to be the digital platform that must demonstrate that there is no employment relationship.

The text agreed also includes aspects to increase transparency using algorithms.

22 member states approved the general text; only five abstained; there were no votes against it.

Countries that wanted stronger safeguards for workers agreed not to stand in the way, to keep the legislative process on track, and decide on a final EU-wide text before the 2024 elections.

Read on: in English and in Spanish

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