New EU Directive Impacting Digital Platforms and Individuals Working for Them

On 23 October 2024, the European Parliament adopted Directive (EU) 2024/2831 (“the Directive”), aimed at improving conditions for individuals working for digital platforms.  The Directive introduces comprehensive measures to: address the employment status of digital platform workers, ensure transparency and fairness in algorithmic management, and strengthen the protection of personal data. The Directive came into force on 1 December 2024, and Member States are required to adopt the necessary measures for transposition into national law by 2 December 2026.

Key Provisions

Employment Status Determination

The Directive establishes a rebuttable legal presumption of employment for digital platform workers where the facts indicate direction and control by the platform – assessed generally on the basis of relevant national law. This means that digital platforms should therefore have the burden of proof where they argue that the contractual relationship in question is not an employment relationship. The presumption applies to all relevant administrative or judicial proceedings, excluding tax, criminal, or social security matters, unless otherwise determined by Member States. 

Algorithmic Management and Data Protection

Digital platforms are strictly prohibited from processing certain categories of personal data of platform workers. Specifically: 

• Data related to the emotional or psychological state of workers, private conversations, sensitive personal data, or biometric data for identification purposes cannot be processed.
• Personal data cannot be collected while the worker is not offering or performing platform work. 

Moreover, digital platforms must:

• Conduct data-protection impact assessments.
• Involve workers' representatives in the data-protection assessment process.
• Provide detailed information about automated monitoring and decision-making systems to workers, their representatives, and competent authorities. 

Transparency and Human Oversight

Digital platforms must: 

• Inform workers about the use of automated systems and explain significant decisions, such as account suspensions or terminations.
• Ensure human oversight of automated systems and prohibit decisions that have a significant impact on workers from being made solely by such systems.
• Regularly evaluate the impact of automated systems on workers' health, safety, and well-being. 

Safety and Health

Digital platforms are required to: 

• Assess and mitigate risks posed by automated systems.
• Implement preventive measures against violence and harassment.
• Ensure that automated systems do not jeopardize workers' health and safety or exert undue pressure on them. 

Information and Consultation

Digital platforms must:

• Inform and consult workers' representatives about the introduction or substantial changes to automated systems.
• In the absence of representatives, directly inform affected workers.

Transparency in Digital Platform Work

Digital platforms are required to declare work performed by digital platform workers to competent authorities, providing the following information: 

• The number of workers and their status.
• General terms and conditions.Average working hours, income, and duration of activities.
• Intermediaries involved in platform operations. 

This information must be updated regularly, and platforms must respond to additional requests for details. 

Remedies and Enforcement

Workers are entitled to: 

• Timely, effective, and impartial dispute resolution. 
• Compensation for damages where applicable. 

Digital platforms must facilitate secure communication channels for workers to contact one another or their representatives. 

Protection Against Adverse Treatment

The Directive protects workers from dismissal or adverse treatment for exercising their rights. Digital platforms must provide substantiated reasons for any dismissal or equivalent action. 

Why this Directive Matters 

This Directive has significant implications for digital labour platforms operating in the EU and the EEA Companies must reassess their employment practices, particularly regarding the classification of workers, to comply with the new legal presumption of employment. Moreover, digital platforms will face heightened transparency and accountability requirements, particularly in the use of automated systems and data processing.

Action Steps

Companies and organizations engaging and interacting with individuals using digital platforms will need to, amongst other things:

1. Assess whether they come within the scope of the new Directive. 
2. Review and revise employment contracts and practices to align with the legal presumption of employment.
3. Ensure compliance with data protection requirements, including conducting impact assessments and providing necessary information to workers and authorities.
4. Establish human oversight mechanisms for automated decision-making systems.
5. Develop procedures for consulting workers and their representatives on significant changes.
6. Implement measures to address risks associated with automated systems, particularly regarding workers' health and safety.

For further assistance or to discuss the implications of this Directive on your business, please contact our legal team.