On Dec. 9, 2021, the European Commission (Commission) proposed the Platform Work Package (PWF or Package). The PWF is a set of measures intended to improve the working conditions of persons working through “digital labor platforms”1 in the EU and to support the sustainable growth of these platforms. The Package consists of three instruments, namely: (a) a Communication setting out the EU approach and measures on “platform work”2 (Communication), (b) a proposal for a Directive on improving working conditions in platform work (Proposed Directive), and (c) draft Guidelines on the application of EU competition law to collective agreements regarding the working conditions of solo self-employed persons (Draft Guidelines).
Among other things, the PWF introduces harmonized measures to determine the employment status of individuals working through digital labor platforms – workers (i.e., employees) versus solo self-employed persons (i.e., independent contractors) – and new material rights for both workers and self-employed persons regarding algorithmic – i.e., automated systems – management.
According to the Commission, conservative estimates suggest that there are more than 500 digital labor platforms active in the EU. Given the broad definition of digital labor platforms, they include, e.g., ride-hailing, food delivery, and domestic work businesses.
These businesses need to be – and remain – alert to the costs, requirements, regulatory risk, and burden of the Package on their...
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