Published on 22nd March 2024
While the AI Act passed its final hurdle by being adopted by the European Parliament, the Platform Work Directive relied on a last ditch effort to reach an agreement before the end of the legislative session. That breakthrough finally happened mid-March.
The World Employment Confederation-Europe welcomes the agreement on platform work, a deal that was years in the making. Europe’s private employment services industry used its voice to help shape the directive. As an early adopter of digital solutions such as online talent platforms to help match labour demand and supply, the industry aimed to ensure a level-playing field for HR services providers as well as appropriate working conditions for platform workers.
The final agreement includes pan-European rules on algorithmic management, while the presumption of employment, which until recently was negotiated based on European-wide criteria, now rests with member states to adopt country-specific solutions based on guidance provided by the Directive.
The Directive, which was aimed at clarifying rules surrounding how digital platforms used algorithms to monitor and manage workers, as well as establish whether workers were independent contractors or employees, had been tensely negotiated for years.
A balanced outcome for the HR services Industry
The deal should be viewed as a balanced outcome for the private employment services industry, which can rely on national labour laws combined with European guidance to determine if a worker is an employee or independent contractor. The criteria to be chosen by the EU Member States reflect existing case law and jurisprudence. Although the Directive does empower the worker with the presumption of employment dependent on the employer, or platform, to establish, companies can rely on the country context to make those decisions, rather than a one-size-fits-all approach.
Improving Working Conditions
The Directive also ensures that transparency and a human-centric approach will be established and followed in the use of algorithms in HR management. This aligns with the World Employment Confederation’s code of Ethical Principles on the use of Artificial Intelligence in the industry which call for a balance that benefits both individuals and companies. In addition to improving working conditions, the algorithmic management rules also aim to help determine the employment status of people working for platforms.
The Directive still needs to be formally adopted by the Council of the European Union and the European Parliament. EU Member States will then have two years to integrate the piece of legislation into their own national systems.
EU legal framework futureproofed for digitalisation impact
In addition to the Platform Work Directive, the European Union finalised another key piece of its legislative framework to enable Europe to make the most of the digital transformation. Following the adoption of the Artificial Intelligence Act early 2024, work now begins to make sense of the law and understand how it will be implemented, including standards and guidelines. The law’s rollout will likely involve more consultation as it slowly finds its way into practice.
