TEXT FORMAT
Platform Work Directive (PWD)
What is the directive?
The new Platform Work Directive is a proposed legislation by the European Union aimed at improving the working conditions of platform workers and providing legal certainty in the gig economy.
TIMELINE
- 2021, December 8: First proposal (European Commission)
- 2022, December: Revisions (European Parliament's Employment Committee)
- 2023, January: Negotiations (Parliament, Commission, and Council)
- 2023, June: The Council agreed its position.
WHAT'S NEXT?
New negotiations (Council and Parliament)
A text should be defined before the 2024 elections.
What does the directive entail?
- Personal Data Protection
Reporting obligations: Platforms that are employers need to declare work performed by workers to the competent authorities of the Member State and provide associated information.
- Transparency and Information
Employment status: The latest Council draft suggests that the presumption of employment status applies if the platform exerts control and direction over the work performed.
- Human resources and safeguards
Right to explanation and review: Platform workers have the right to obtain proof for decisions significantly affecting them.
Latest Update
EU labor ministers endorsed a general approach to the Platform Workers Directive on June 12, marking the close of a year and a half’s worth of intense negotiations and opening the door to interinstitutional negotiations with the Commission and the European Parliament.
In total, 22 member states approved the general approach text at the Employment and Social Affairs Council (EPSCO) in Luxembourg. Only five – Estonia, Germany, Grece, Latvia, and Spain – abstained. There were no votes against it.
Implications of the directive on the gig workers
- Access to minimum wage, sick pay, and holiday pay will provide a safety net and alleviate financial insecurity.
- Enhanced health and safety measures will also ensure that gig workers are not exposed to undue risks.
- The new regulations could reduce flexibility, with employers potentially limiting the number of hours or gigs available.
- Increased competition for work could make it more difficult for gig workers to secure consistent income.
Copyright: WageIndicator - Jul 2023
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