European Commission wants to better regulate platform work

Date: December 29, 2021

Modified November 14, 2023

Written by: Sander Poelman

Reading time: +/- 2 minutes

Platform work is a rapidly growing market. However, with this explosive growth also comes a lot of regulations. In the Netherlands, this already led to rulings about Uber drivers, Deliveroo delivery drivers and Helpling cleaners. Now the next development is imminent: the European Commission is coming up with legislation to better protect platform workers.

European protection

In platform work, a customer is connected to a performer via a (digital) platform - usually in the form of an app. That performer is usually hired as a self-employed person through a contract of assignment. In September, we already covered the Uber ruling in the Netherlands in our blog. That ruling was a major blow to Uber. All of their drivers were found to have an employment contract with retroactive effect. This while platform companies actually aim to enter into a contract of assignment. After all, an employee is entitled to a lot of (legal) protection. An employee may also be covered by a mandatory collective bargaining agreement. This brings with it even more rules than the law already imposes. This constitutes a great contrast to the assignment contract.

Employee, unless

The European Commission therefore wants to better protect platform workers at the European level. A draft directive has been drawn up for this purpose. This directive takes as its starting point that platform workers are employees. If companies find that they are self-employed, they will have to prove it.

Algorithms

Proof of a zzp relationship will often require looking at the algorithms a company uses. Platform companies often apply these to assign jobs, process reviews, set rewards and generally supervise employees. In this way, there can be a "relationship of authority. That authority from the employer has traditionally been an important characteristic for the existence of an employment relationship. In the Uber ruling, the court already ruled that there can be a modern-day relationship of authority through such algorithms. Today, there is less and less of the classic authority relationship of the "foreman at the workplace. But that does not mean that authority cannot actually be exercised.

It requires platforms to keep employees informed of how they use algorithms. The way they exercise authority over their employees through those algorithms must be clear to those employees. Thus, the use of those algorithms should become more fair, transparent and accountable.

Conclusion

If this directive comes, it will be a next step in regulating platform work. Dutch case law had already taken steps in that direction. However, the ball will then be in the legislator's court to transpose the European directive into national legislation. This will further protect the platform worker. Although, of course, this legislation also offers (even) less room for the employee who would like to work voluntarily as a self-employed person.


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