COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Better working conditions for a stronger social Europe: harnessing the full benefits of digitalisation for the future of work
Date: 2021-12-09
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: EU competition policy, collective agreement, collective bargaining, data protection, digitisation, online platform worker, personal data, self-employed person, wage earner, working conditions

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 9.12.2021  COM(2021) 761 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Better working conditions for a stronger social Europe: harnessing the full benefits of digitalisation for the future of work  
 
 
1. Introduction 

Digitalisation enables innovative services, new business models and new forms of work 
organisation. Spurred by large amounts of data and powerful technologies such as artificial 
intelligence  (AI),  digitalisation  is  connecting  the  world,  boosting  international  cooperation 
and streamlining the way organisations operate and workers are managed.  

New  technologies  allow  for  the  automation  of  much  of  the  day-to-day  administrative 
work and repetitive tasks that workers used to spend hours on – enabling them to focus 
on more creative, analytical and strategic work that can give their organisation a competitive 
edge.  Digitalisation  is  making  telework  and  hybrid  work  a  viable  choice  for  a  growing 
number  of  companies,  allowing  for  more  flexible  work  organisation  and  improved 
productivity, whilst contributing to the EU’s green commitments. Digital labour platforms can 
efficiently match supply and demand for labour and create opportunities for clients, workers 
and self-employed people. 

Alongside  these  opportunities,  the  digital  transformation  also  comes  with  challenges. 
Working conditions in the EU are amongst the best in the world. Minimum requirements on 
working time, health and safety at work, social protection, and the equal treatment of persons 
(including  equal  pay  between  men  and  women)  are  all  part  of  the  European  social  model. 
However, the advent of digitalisation is affecting labour markets in ways which question this 
model. New forms of work organisation do not automatically translate into quality jobs. 

The principles underpinning our European social market economy should therefore not 
be taken for granted and should be protected. Some people are increasingly disadvantaged, 
including  many  working  through  digital  labour  platforms  who  operate  under  precarious 
working  conditions.  New  ways  of  organising  work,  such  as  platform  work,  make  it  more 
complex  to  correctly  classify  people  as  workers  or  self-employed.  This  leads  to  situations 
where  some  people  are  unfairly  deprived  of  access  to  the  rights  and  protections  associated 
with the worker status. Others cannot enjoy the real autonomy of the self-employed status.  As 
algorithmic  tools  are  becoming  more  widespread  in  the  world  of  work,  issues  related  to 
surveillance, the use of data, equality and discrimination (e.g. gender biases embedded in the 
design of algorithmic tools), and the application of algorithmic management are increasingly 
coming to the fore.  

Following President von der Leyen’s commitment1, the Commission is proposing a set of 
measures aimed at improving working conditions in platform work.  

At the Porto Social Summit in May 2021, EU leaders renewed their commitment to put 
into practice the European Pillar of Social Rights. The platform work package, alongside 
the  Commission’s  initiatives  on  AI2  and  digital  skills3,  is  a  key  element  of  our  vision  for 

1  Political  Guidelines  for  the  Next  European  Commission  2019-2024.  ‘A  Union  that  Strives  for  More.  My 

Agenda for Europe.’ Available online. 

2 COM/2021/206 final. Available online. 
3 European Skills Agenda. Available online.  

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Social  Europe  in  the  digital  age.4  This  vision  is  enshrined  in  the  European  Pillar  of  Social 
Rights and its accompanying Action Plan. The vision is one of a future in which the digital 
economy develops sustainably and delivers on the many promises it holds, and in which new 
business models bring more and better jobs, upholding high social standards. 

2. Platform work – Why we need to act 

Platform  work  represents  a  world  of  work  in  constant  flux.  It  enables  many  people  to 
make  a  living  or  complement  their  income,  including  for  people  who  otherwise  struggle  to 
access  the  labour  market,  such  as  low-wage  earners,  women,  young  people,  people  with 
disabilities,  migrants  or  people  with  a  minority  racial  or  ethnic  background.  It  creates 
opportunities  to  develop  or broaden a client  base, sometimes across borders. Platform  work 
brings businesses a much wider access to consumers, opportunities to diversify revenues and 
develop  new  business  lines,  thereby  helping  them  grow.  For  consumers  it  means  improved 
access to products and services which would be otherwise hard to reach, as well as access to a 
new and more varied choice of services.   

The  digital  platform  economy  is  growing  quickly.  Between  2016  and  2020,  its  revenues 
grew  almost  fivefold  from  an  estimated  EUR  3  billion  to  circa  EUR  14  billion.5  Revenues 
could be even higher, with another study estimating them at EUR 20.3 billion.6 Today, over 
28 million people in the EU work through digital labour platforms. In 2025, their number is 
expected to reach 43 million.  

Platform work is far from homogeneous. Digital labour platforms operate in a multitude of 
economic sectors: from the most visible “on-location” services such as ride-hailing, delivery 
or domestic work, through micro-tasks such as AI-training or data encoding, to highly skilled 
creative or specialist jobs such as architectural design, translations or IT development. Digital 
labour platforms also organise work in different ways, leaving varying degrees of autonomy 
and independence to  people who work through  them. Platform  work is  some people’s main 
activity, whereas for others it is a source of additional income. If all these people are to make 
the most of the new opportunities of platform work, it is essential that digital labour platforms 
across the EU operate within a clear legal framework. 

However, the recent development of the labour platform economy has also brought new 
challenges to those who work through them. These can range from a lack of transparency 
and  predictability  of  contractual  arrangements  to  health  and  safety  challenges,  the 
misclassification of the employment status, or inadequate access to social protection. 

There  is  a  need  for  greater  clarity  with  respect  to  the  employment  status  of  people 
working through digital labour platforms. Nine out of ten digital labour platforms active in 

4 The Commission’s work following up the European Parliament’s report on the right to disconnect is also part 
of  such  vision  –  European  Parliament  resolution  of  21  January  2021  with  recommendations  to  the 
Commission on the right to disconnect (2019/2181(INL)). Available online. 

5 De Groen W., Kilhoffer Z., Westhoff L., Postica D. and Shamsfakhr F. (2021). Digital Labour Platforms in the 
EU:  Mapping  and  Business  Models.  Study  prepared  by  CEPS  for  DG  EMPL  under  service  contact 
VC/2020/0360. Available online. Based on a smaller subset of 52 observations than the overall database of 
516 platforms.  

6 PPMI (2021). Study to support the impact assessment of an EU initiative on improving working conditions in 

platform work. Available online. 

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the  EU  are  currently  estimated  to  classify  people  working  through  them  as  self-employed. 
Many  of  these  people  have  real  autonomy  in  their  work  and  value  the  flexibility  and  easy 
access  to  clients  that  digital  labour  platforms  provide.  Others,  however,  experience 
subordination to, and varying degrees of control by, the digital labour platforms they operate 
through,  for  instance  as  regards  pay  levels,  working  time  organisation  and  other  aspects  of 
their  working  conditions.  In  these  cases,  it  is  not  always  clear  if  their  employment  status  is 
correctly  determined.  The  employment  status  should  be  based  on  the  facts  that  characterise 
the relationship, regardless of the existence of a written contract or its terms and conditions. 
Employment status has consequences on what obligations fall on digital labour platforms and 
what  rights  should  be  granted  to  people  working  through  them.  People’s  preferences 
regarding the desired levels of autonomy, flexibility and protection may vary. It is therefore 
important  that  they  have  legal  certainty  regarding  their  status,  allowing  them  to  make 
conscious and voluntary choices.  

The  use  of  “algorithmic  management”  practices  on  digital  labour  platforms  brings 
specific challenges. “Algorithmic management” refers to the use of algorithms i.e. automated 
systems  for  supporting  or  even  replacing  managerial  functions  such  as  monitoring  and 
evaluating work. Algorithmic management is not limited to the platform economy. Automated 
systems  are used in  a  growing number of ways in the wider labour market  – from the very 
basic monitoring of work schedules, shifts and working hours to more complex applications 
dealing with task allocation and pay calculation.  

For  digital  labour  platforms,  algorithmic  management  is  clearly  inherent  to  their 
business  model  and  can  have  a  significant  impact  on  working  conditions.  Moreover,  it 
can  conceal  subordination  behind  a  claim  of  lack  of  human  supervision.  A  person  may  be 
purportedly  self-employed  and  thus  lacking  access  to  rights  associated  with  the  status  of  a 
worker,  while  in  reality,  the  control  exercised  through  algorithms  deprives  them  of  the 
autonomy  enjoyed  by  a  genuine  self-employed  person.  Even  in  situations  where  the 
employment status is correctly classified, algorithms can play a determining role in terms of 
access  to  tasks  and  thus  the  level  of  earnings  for  the  genuine  self-employed.  The  close 
connection  between  algorithmic  management  and  the  working  conditions  in  platform  work 
calls for an immediate and dedicated policy response. 

Issues related to enforcement, traceability and transparency, including in cross-border 
situations,  can  contribute  to  poor  working  conditions  and  inadequate  access  to  social 
protection.  National  authorities  have  difficulties  accessing  data  on  digital  labour  platforms 
and on people working through them, e.g. the number of persons performing platform work 
on a regular basis, their contractual or employment status,  or digital labour platforms’ terms 
and  conditions.  The  problem  of  traceability  is  especially  relevant  when  digital  labour 
platforms  operate  in  several  Member  States,  making  it  unclear  where  platform  work  is 
performed and by whom. 

Collective  bargaining  and  collective  agreements  are  key  to  improving  working 
conditions. However, in the platform work context social dialogue remains very limited. 
To some extent, the way in which platform work is carried out limits practical opportunities 
for collective representation and organisation. There is often no physical workplace involved, 
which  means  that  people  working  through  digital  labour  platforms  rarely  interact  with  each 
other,  or  at  least  not  in  an  organised  way.  Often  they  may  not  even  know  their  peers  on  a 

3 

 
 
given platform, or how to contact them. For self-employed people, an additional obstacle to 
collective  bargaining  arises  from  the  current  interpretation  of  EU  competition  law.  Article 
101(1) of the Treaty on the Functioning of the European Union prohibits agreements between 
typically  considered 
undertakings 
“undertakings” under EU competition law, meaning that, in practice, people working through 
digital  labour  platforms  cannot  usually  negotiate  collectively  to  improve  their  working 
conditions without the risk of infringing EU competition law.  

that  restrict  competition.  The  self-employed  are 

In  the  quest  to  tackle  these  challenges,  the  Commission  is  not  starting  from  scratch. 
There are already various existing and proposed legal acts at European level, which are 
of high relevance for platform work. These include the whole body of EU labour law and 
equal  treatment  law,  as  well  as  internal  market  instruments  such  as  the  General  Data 
Protection Regulation7, which ensures a strong protection of personal data across the Union, 
the Platforms-to-Business Regulation8 and the proposed Artificial Intelligence Act. However, 
the specific challenges outlined above require additional targeted actions. 

European  co-legislators  recognise  the  need  for  action  at  the  EU  level.  The  European 
Parliament has called for an ambitious EU approach to address challenges in platform work. It 
has adopted an own-initiative report9, which calls for strong measures to  address the risk of 
misclassification of the employment status and to tackle algorithmic management challenges 
in the platform work context. Member States10, too, acknowledge the need for stronger legal 
certainty on the rights and obligations of people working through digital labour platforms, and 
point to their unclear employment status as a key issue. The European Economic and Social 
Committee11  and  the  Committee  of  the  Regions12  have  also  called  for  specific  action  on 
platform work. 

The Commission has listened to social partners and relevant stakeholders. Trade unions 
and  employers’  organisations  generally  agree  with  the  overall  objectives  identified  by  the 
Commission and the need to tackle them. Workers’ representatives have demanded ambitious 
measures to tackle misclassification and want to be able to  initiate social dialogue on issues 
related  to  algorithmic  management.  Business  associations  have  cautioned  against  one-size-
fits-all measures and stressed the need to build upon existing and forthcoming EU initiatives. 
The Commission has also undertaken extensive exchanges with those most directly involved 
in  the  platform  economy  –  digital  labour  platforms  and  the  people  working  through  them. 
Digital  labour  platforms  have  called  for  clearer  rules  and  an  enabling  framework  that  can 
ensure  fairness  without  stifling  innovation  and  job  creation.  People  working  through  digital 
labour platforms have stressed their appreciation for the flexibility and opportunities offered 
by platform work, while asking for their social rights to be respected and strengthened.  

7 Regulation (EU) 2016/679. Available online. 
8 Regulation (EU) 2019/1150. Available online. 
9  European  Parliament  report  on  “fair  working  conditions,  rights  and  social  protection  for  platform  workers  – 

new forms of employment linked to digital development”. 2019/2186(INI). Available online. 

10 Debate on platform work in the Employment and Social  Affairs Council on 3 December 2020. Main results 

available online. 

11  EESC  opinion:  Fair  work  in  the  platform  economy  (Exploratory  opinion  at  the  request  of  the  German 

presidency). Available online. 

12 CoR opinion: Platform work – local and regional regulatory challenges. Available online. 

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The measures proposed in this package reflect the analyses and discussions above. They 
include: 

  a proposal for a directive on improving working conditions in platform work;  
  draft guidelines on the  application of EU competition law to  collective  agreements 
regarding  the  working  conditions  of  solo  self-employed  persons,  which  cover  those  
working through digital labour platforms;  

  calls for new measures, as outlined below, on national authorities, social partners 
and  all  relevant  stakeholders  to  achieve  better  working  conditions  for  those  who 
work through digital labour platforms.  

The  Commission  is  proposing  a  set  of  strong  tools  to  improve  the  working  conditions  in 
platform  work,  including  with  the  view  to  support  the  conditions  for  sustainable  growth  of 
digital  labour  platforms  in  the  European  Union.  The  proposed  Directive  puts  forward 
measures  to  address  the  risk  of  misclassification  of  the  employment  status  in  platform 
work.  It  addresses  algorithmic  management  challenges  in  platform  work,  as  well  as 
challenges  related  to  transparency  and  traceability.  The  draft  guidelines  aim  at  ensuring 
that  competition  law  does  not  stand  in  the way  of  collective  negotiations  over  pay  and 
other aspects of the working conditions of solo self-employed persons in a weak position.  

Action at EU level needs to be complemented by other relevant actors. The Commission 
will support and monitor the transposition of the Directive and ensure proper application and 
enforcement  by  the  Member  States.  However,  additional  measures  are  needed  to  foster 
fairness in platform work. This is why the Commission puts forward in this Communication 
calls  for  Member  States,  digital  labour  platforms,  the  social  partners,  to  work  together  to 
further reinforce and complement the proposed directive and guidelines. 

3.  EU  action  on  platform  work  –  What  does  it  mean  for  those  working 
through digital labour platforms reclassified as workers? 

Among  the  28  million  people  who  are  estimated  to  work  through  digital  labour 
platforms,  most  people  are  genuinely  self-employed.  However,  there  may  be  up  to  5.5 
million people who are “false” self-employed.13 That means that, while their contracts with 
the digital labour platforms they work through describe them as self-employed, in reality they 
are subject to control and supervision, which  are characteristic of the ‘worker’ status. These 
people  may  be  in  a  particularly  precarious  situation.  If  they  want  to  challenge  their 
employment  status  classification  they  need  to  go  to  court  and  prove  that  the  contractual 
description of their status is false. This is not an easy endeavour, as it can be time and money 
consuming, and is especially challenging for people in a weak labour market position, such as 
low-wage  earners,  young  workers  or  those  with  a  migrant  background.  To  date,  there  have 
been  more  than  100  court  decisions  and  15  administrative  decisions  dealing  with  the 
employment  status  of  people  working  through  digital  labour  platforms.14  In  most  cases,  the 

13 SWD(2021)396. Impact Assessment report accompanying the proposal for a Directive on improving working 

conditions in platform work, Section 2.1 and Annex 5. 

14 These took place in BE, DE, DK, ES, FI, FR, IE, IT, NL and SE. – European Centre of Expertise in the field 
of labour law, employment and labour market policies (ECE).  “Case Law on the Classification of Platform 
Workers: Cross-European Comparative Analysis and Tentative Conclusions”, May 2021. Available online. 

5 

 
 
                                                           
rulings have confirmed that they were misclassified as self-employed and should actually be 
considered as workers.15 

The  employment  status  is  the  gateway  to  existing  labour  and  social  rights.  The 
misclassification of false self-employed people prevents them from enjoying rights to which 
they would be entitled as workers. These rights include the right to a minimum wage where 
applicable,  collective  bargaining,  working  time  regulations,  occupational  safety  and  health 
protection,  equal  pay  between  men  and  women  and  the  right  to  paid  leave,  as  well  as 
improved access to social protection against work accidents, unemployment, sickness and old 
age.  Misclassification  is  not  only  unfair  for  the  workers  affected,  it  can  also  have  negative 
repercussions for society as a whole.  

This  is  why  one  of  the  key  provisions  of  the  proposed  directive  is  a  rebuttable 
presumption of an employment relationship. The presumption applies to all digital labour 
platforms  that  exercise  control  over  the  people  who  work  through  them.  The  proposal  puts 
forward a number of criteria of such control and, related to it, subordination, providing more 
legal certainty at EU level. The proposal includes obligations on the Member States to adopt 
measures to ensure that the presumption is effective, can be enforced as well as rebutted. It is 
estimated that between 1.7 million and 4.1 million out of the 5.5 million people who are 
at risk of misclassification might, as a result of the proposed Directive, be reclassified as 
workers  and  will  thus  gain  access  to  various  labour  law  protections,  and  benefit  from 
better protection against social risks (see box below). Those who are not reclassified might 
see their contractual conditions changed to be in line with  the characteristics of the  genuine 
self-employed status. 

A  correct  employment  status  classification  requires  better  information  on  applicable 
rules  and  obligations.  People  working  through  digital  labour  platforms  may  often  be 
unaware of their rights and obligations, for example in the areas of labour law, social security 
and  taxation.  Digital  labour  platforms  have  expressed  discontent  with  the  regulatory 
uncertainty  and  lack  of  transparency  they  face  vis-à-vis  applicable  national  rules.  Member 
States are best placed to ensure clarity and transparency on the rules they set.  

In order to complement the measures put forward by the directive, the Commission invites 
Member States to: 

  provide advice and guidance to people working through digital labour platforms on the 

fiscal, social security and/or labour law obligations of their platform activity;  

  set  up  dedicated  information  channels,  such  as  information  websites  and  hotlines,  to 

provide said advice;  

  ensure improved transparency for the digital labour platforms active in their territory 

 

on the national rules governing the classification of employment status;  
facilitate  the  development  of  small  and  medium-sized  digital  labour  platforms,  for 
including  relevant  and  sufficiently 
example  by  providing  access 
comprehensive information on the applicable legal framework.  

templates, 

15 SWD(2021)396. Impact Assessment report accompanying the proposal for a Directive on improving working 

conditions in platform work, Annex 10.  

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Those  working  through  digital  labour  platforms  will  also  benefit  from  new  protections 
against the pitfalls of algorithmic management. The lack of autonomy and the surveillance 
it induces in platform work can have a negative impact on the working conditions of people 
subject  to  it,  for instance  in  terms  of psychosocial  stress  (as  people  working through  digital 
labour  platforms  can  feel  constantly  monitored  and  evaluated  without  proper  justification), 
risk of accidents (as algorithms may incentivise potentially dangerous behaviour, for instance 
by  offering  bonuses  for  faster  deliveries)  and  access  to  tasks.  Digital  labour  platforms 
contribute  to  these  challenges  through  their  terms  and  conditions,  which  may  unilaterally 
regulate  pay,  working  time,  dispute  resolution,  customer  service  etiquette  and  more,  while 
using  technological  means  to  monitor,  evaluate  and  discipline  people’s  work.  This  leads  to 
unclear  responsibilities  and  lack  of  redress  mechanisms  regarding  sometimes  unintelligible 
and  unaccountable  decisions,  for 
instance  concerning  work  sanctions  and  contract 
terminations.  

The  proposed  Directive  establishes  a  new  set  of  rights  on  algorithmic  management. 
These will ensure workers, their representatives and labour inspectorates are better informed 
about  the  use  of  automated  monitoring  and  decision-making  systems,  and  the  impact  they 
have on working conditions. They will be able to resort to concrete procedures and remedies 
when  faced  with  significant  decisions  stemming  from  the  use  of  such  systems  (like  the 
termination and suspension of accounts or decisions with similar effects). The proposal also 
calls for digital labour platforms to consult workers’ representatives on substantial changes in 
work  organisation  related  to  the  introduction  or  use  of  algorithms.  These  measures  will 
specify  and  complement  what  is  already  ensured  through  the  General  Data  Protection 
Regulation  (GDPR)  in  terms  of  the  protection  of  personal  data,  and  complement  what  the 
proposed  Artificial  Intelligence  (AI)  Act  will  do,  both  to  increase  the  availability  of 
information about the automated systems they might be subjected to and to protect them from 
the  risk  of  discrimination  and  bias,  in  the  knowledge  that  algorithmic  management  is 
gradually spreading beyond platform work.  

Social  partners  have  an  important  role  to  play.  The  Commission  will  support  social 
dialogue in platform work, through capacity-building activities for social partners, so that they 
can initiate social dialogue on algorithmic management in the context of the new information 
and consultation rights proposed in the directive. Platform work is characterised by the lack of 
a common workplace where workers can get to know each other and communicate with each 
other  and  with  their  representatives.  The  proposed  Directive  will  therefore  demand  digital 
labour  platforms  to  establish  digital  communication  channels,  in  line  with  their  work 
organisation,  where  people  performing  platform  work  can  exchange  with  each  other  and  be 
contacted by their representatives.  

 The Commission also calls: 

  on Member States  to  support social partners in  reaching out  and representing people 
working through digital labour platforms, in line with national practices and traditions 
and the autonomy of social partners; 

  on  digital  labour  platforms  to  promote  social  dialogue,  by  actively  supporting  the 

collective representation of people working through them.  

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As algorithms further shape work beyond digital labour platforms and as technological 
developments  accelerate,  the  Commission  will  continue  monitoring  the  situation  and 
consider further actions if needed.. Tackling algorithmic management in platform work is a 
natural first step. It is inherent to the business model of digital labour platforms, and plays a 
key  role  in  the  working  conditions  of  people  working  through  them.  At  the  same  time,  the 
varied  ways  in  which  algorithmic  management  is  used  in  the  wider  employment  context 
brings  about  challenges  that go beyond the specificities of platform  work. The Commission 
will therefore continue analysing the phenomenon and will keep an eye on the potential future 
need to regulate the use of algorithms in the wider world of work.  

The  impact  of  the  directive  on  platform  workers  –  How  do  the  new  rights  work  in 
practice? 

In cases where the organisation of work through a platform fulfils always two of the criteria 
enlisted  in  the  directive,  people  who  work  through  that  platform  will  be  presumed  to  be 
workers. The platform  is then expected to  enable them to  enjoy the applicable  rights  which 
come  with  that  employment  status.  Member  States  will  need  to  set  up  clear  procedures  to 
ensure that this is the case. Moreover, public authorities, such as labour inspectorates or social 
protection institutions, will be able to rely on and enforce the presumption. 

The reclassified worker will enjoy the full set of rights guaranteed to workers, e.g. at least the 
national or sectoral minimum wage, where applicable, the right to guaranteed rest time, paid 
holidays and safety and health protection. Access to social protection, which the worker status 
guarantees,  means  support  in  cases  of  unemployment,  sickness  and  health  care;  maternity, 
paternity and parental leave; invalidity, old-age and survivors’ benefits and benefits relating to 
accidents at work and occupational diseases. Platform workers will therefore be able to rely 
on a social safety net, should the need arise.  

Platform  workers  will  also  obtain  new  or  more  specific  rights  with  respect  to  algorithmic 
management. They will better understand how tasks are allocated, how prices are set, and  it 
will become easier for them to question automated decisions taken by algorithms, and get a 
solution  should  problems  arise.  Changes  to  the  way  algorithms  influence  work  organisation 
will  be  more  transparent.  Rules  ensuring  that  personal  data  is  not  unduly  collected  will  be 
further  reinforced.  The  people  concerned  will  be  able  to  contest  all  automated  decisions 
affecting their working conditions and access to redress mechanisms will become clearer.  

Thanks to the channels for information exchanges that the digital labour platforms will need 
to set up in compliance with the proposed Directive, platform workers will be able to contact 
each  other  and  communicate  on  matters  related  to  their  work,  thus  improving  collective 
representation. 

4.  EU  action  on  platform  work  –  What  does  it  mean  for  the  genuine  self-
employed? 

Of the estimated 28 million people working through digital labour platforms in the EU, 
5.5  million  may  be  misclassified.  The  remaining  22.5  million  people  are  deemed  to  be 

8 

 
 
 
correctly  classified, either as  workers or as self-employed. The overwhelming majority 
of  them  are  classified  as  self-employed.16  As  such,  they  appreciate  the  flexibility  and 
autonomy,  as  well  as  the  easily  accessible  job  opportunities,  offered  by  digital  labour 
platforms.  While  they  do  not  necessarily  face  the  same  issues  as  misclassified  workers  in 
terms of employment status, they may nevertheless experience difficulties regarding the new 
challenges  that  algorithmic  management  poses  to  their  independence  and  to  the  regulatory 
framework  within  which  their  work  usually  takes  place.  In  this  context,  genuine  self-
employment on digital labour platforms should be promoted and protected at the same 
time.  

The  draft  guidelines  on  the  application  of  EU  competition  law  aim  to  ensure  that  EU 
competition law does not stand in the way of collective bargaining for solo self-employed 
persons  in  a  weak  position.  The  initiative,  which  addresses  this  issue  in  the  wider  world  of 
work  and  which  is  therefore  not  limited  to  digital  labour  platforms,  is  intended  to  provide 
legal certainty on the applicability of EU competition law to collective bargaining by the self-
employed.  It  would  enable  certain  self-employed  people  to  negotiate  collectively  their 
working  conditions  (including  remuneration)  vis-à-vis  counterparties,  when  they  are  not 
consumers.  These  draft  guidelines  will  be  subject  to  an  open  public  consultation  to  gather 
feedback by relevant stakeholders before their adoption.  

The measures on algorithmic  management in the proposed Directive  will  also  apply  to 
the genuine self-employed. Understanding how somebody’s behaviour influences automated 
decisions on task attribution can affect access to future work opportunities, irrespective of the 
employment status. Improving algorithmic transparency and ensuring human monitoring and 
review  of  significant  automated  decisions  is  therefore  also  important  for  the  genuine  self-
employed.  

The  measures  outlined  above  complement  what  the  EU  has  already  been  doing  to  tackle 
challenges to self-employment. The Council Recommendation on access to social protection 
for  workers  and  the  self-employed17  calls  on  Member  States  to  ensure  that  workers  and  the 
self-employed  have  formal  and  effective  access  to  adequate  social  protection.  National 
implementation  plans18  show  that  gaps  remain  in  formal  social  protection  coverage  for  the 
self-employed.  This  is  especially  the  case  for  access  to  unemployment  benefits,  benefits 
related to accidents at work and occupational diseases and paternity benefits. In this context, 
the  Commission  strongly  encourages  and  will  continue  to  support  Member  States  in 
further  strengthening  social  protection  of  the  genuine  self-employed.  They  are 
instrumental  for  the  EU’s  economic  growth,  as  they  drive  business  innovation  and 
entrepreneurialism. 

16 SWD(2021)396. Impact Assessment report accompanying the proposal for a Directive on improving working 

conditions in platform work, Section 2.1 and Annex 5.  

17  Council  Recommendation  of  8  November  2019  (2019/C  387/01).  Available  online.  The  Recommendation 
covers unemployment, sickness and health care, maternity and paternity, invalidity, old-age and survivors’ 
benefits and benefits related to accidents at work and occupational diseases. 

18  Member  States  were  recommended  to  implement  the  principles  of  the  Recommendation  and  to  submit  a 
national plan setting out the corresponding  measures by 15 May 2021. The national implementation plans 
can be consulted online.  

9 

 
 
                                                           
The Council Recommendation on improving the protection of the health and safety at work of 
the  self-employed19  promotes  the  prevention  of  occupational  accidents  and  diseases  among 
the  self-employed.  The  Directive  on  the  application  of  the  principle  of  equal  treatment 
between men and women engaged in an activity in a self-employed capacity20 also lays down 
specific  rights  for 
the  self-employed  (i.e.  maternity  allowances,  protection  against 
discrimination, etc.). 

Furthermore, the EU internal market acquis also offers relevant protections for the self-
employed. The Platforms-to-Business (P2B) Regulation21 aims to ensure that self-employed 
people working through digital labour platforms are treated in a transparent and fair way and 
that they have access to effective redress in the event of disputes. The General Data Protection 
Regulation22  requires  that  all  personal  data  processing  is  lawful,  fair  and  transparent  and 
limited to what is necessary. It also grants a number of data protection rights, such as the right 
to be informed about personal data processing and of access to one’s own personal data, the 
right to rectification (including the right to have one’s data corrected), the right to restrict the 
processing  of  one’s  data,  the  right  to  data  portability  and  the  right  not  to  be  subject  to  a 
decision based solely on automated processing of personal data when such decision has legal 
effects or similarly significant effects. 

The  impact  of  the  Directive  on  genuine  self-employed  people  –  How do the new  rights 
work in practice? 

As  an  indirect  effect  of  the  Directive,  some  of  the  digital  labour  platforms  which  currently 
exercise  some  degree  of  control  over  people  who  work  through  them  may  change  their 
business  model  to  create  the  conditions  for  genuine  self-employment.  The  Directive  will 
provide incentives for digital labour platforms to further clarify their contractual relationships, 
if  necessary,  in  order  to  put  them  more  firmly  on  the  path  of  either  the  self-employed  or 
employed status. When necessary, the self-employed will also receive support to clarify their 
status. The Directive is expected to cement the autonomy of the self-employment and support 
their  ability  to  take  advantage  of  their  entrepreneurial  possibilities,  e.g.  by  developing  their 
client  pool.  Those  who are  already  genuine  self-employed  will  retain  the  benefits  related  to 
their employment status. 

All  self-employed  people  working  through  platforms  will  obtain  similar  rights  to  workers 
with  respect  to  algorithmic  management,  most  notably  on  the  transparency  of  automated 
systems deployed and on mechanisms to redress and review algorithmically-driven decisions. 
Having  more  clarity  on  the  mechanisms  underpinning  the  assignment  and  proposal  of  tasks 
will help them to improve income security and predictability. 

5. EU action on platform work – What does it mean for businesses? 

Conservative  estimates  suggest  that  there  are  more  than  500  digital  labour  platforms 
active  in  the  EU.  These  are  innovative  companies  that  offer  services  catering  to  emerging 

19 Council Recommendation of 18 February 2003 (2003/134/EC). Available online. 
20 Directive (EU) 2010/41 
21 Regulation (EU) 2019/1150. Available online. 
22 Regulation (EU) 2016/679. Available online. 

10 

 
 
 
                                                           
consumer preferences, including notably ‘on demand’ services. They often build their client 
base  and  competitive  position  through  the  speed,  efficiency  and  flexibility  of  their  service 
provision. They bring dynamism to the EU’s economy, building on the perks of digitalisation 
and can act as important levers in the green and digital transitions. However, their innovation 
potential risks being thwarted by the fragmentation of existing regulatory frameworks, which 
challenge cross-border expansion and prevents digital labour platforms from making the most 
of the Single Market’s economies of scale and scope.  

Innovation  should  take  place  in  a  truly  competitive  and  fair  environment.  For 
competition to yield positive outcomes in terms of consumer choice, low prices and workers’ 
well-being, businesses should compete on the basis of the quality of the service they provide 
and  their  productivity,  rather  than  on  the  working  conditions  of  their  workers.  Currently, 
however, some digital labour platforms build part of their competitive advantage not only on 
the innovation of their services, but also on the low cost of their labour, by contracting people 
who should actually be workers as self-employed. Misclassification results in fewer costs than 
what  would  be  due  otherwise:  on  average,  companies  employing  their  workers  face  24.5% 
higher costs in the form of tax and social protection contributions.23  

The proposed Directive ensures fair treatment of workers as well as a level-playing field 
and legal certainty for businesses. It brings more clarity on who should be considered as a 
worker  and  where  the  obligations  of  digital  labour  platforms  lie,  thereby  avoiding  lengthy 
court cases and granting digital labour platforms legal certainty on how they can conduct their 
business across the EU. The rebuttable presumption and  criteria of employment put forward 
by  the  Directive  will  ensure  that  digital  labour  platforms  operating  through  false  self-
employed  people  follow  the  same  regulations  as  platforms  and  traditional  businesses 
employing  their  workers,  and  therefore  do  not  benefit  from  an  unjustified  competitive 
advantage. The proposed Directive includes measures to prevent undue burdens on SMEs. EU 
law will be complemented by guidance provided by the Member States.  

For digital labour platforms, the possibility to work with  genuine self-employed people 
will  not  be  significantly  affected.  Where  digital  labour  platforms  operate  through  self-
employed  people,  their  terms  and  conditions  should  truly  allow  for  the  autonomy  and 
entrepreneurialism  that  genuine  self-employment  entails.  This  in  turn  does  not  exclude 
providing some payments in kind, for example through additional contributions to insurances 
or learning and development opportunities. What applies in the offline economy should also 
apply and be enforced in the online economy. Other businesses, including those that directly 
compete with digital labour platforms in the same sectors of activity, though in a “brick and 
mortar” rather than digital setting, have to comply with the same rules.  

The  current  impossibility  to  port  rating/reputational  systems  between  digital  labour 
platforms  thwarts  competition  between  them,  as  it  gives  disincentives  people  to  work 
through  newly  established  digital  labour  platforms.  This  lack  of  competition  is  also  often 
mirrored  in  the  relationship  between  people  working  through  a  same  platform.  As  people 
often use multiple digital labour platforms to offer their services, the issue of the portability or 
interoperability  of  ratings  is  an  important  question  which  influences  their  opportunities  for 
career  and  business  development.  The  so-called  ‘lock-in  effects’  prevent  people  from 

23 Eurostat (2021). Wages and labour costs. Available online. 

11 

 
 
                                                           
switching to other digital labour platforms for fear of losing their hard-won online reputation 
gained through clients’ ratings. ‘Superstar effects’, on the other hand, mean that  people who 
are  newcomers  on  a  platform  have  a  hard  time  challenging  the  established  position  of  their 
competitors, since they cannot bring with them references they might have gained elsewhere. 
This favours incumbent digital labour platforms but also, within one platform, it favours those 
who have been working the longest through it.   

In  light  of  this,  the  Commission  will  support  the  setting  up  of  a  Code  of  Conduct  by 
facilitating dialogue among all interested parties. This could include logistical support for 
an industry-led process to ensure the portability of rating/reputational systems, for example by 
bringing together all interested parties in dedicated events.  

The Commission also calls on digital labour platforms to: 

 

facilitate the exercise of the right to data portability under the GDPR by ensuring the 
technical possibilities for such portability, and to extend the possibility to transmit/port 
data  to  reputational  data.  This  could  be  achieved  through  an  industry-led  Code  of 
Conduct. 

  cooperate  across  industries  and  develop  common  IT-based  formats  and  solutions  to 
further improve the transparency and traceability of platform work, for example within 
the proposed Code of Conduct. 

The impact of the proposed Directive on businesses – The perspective of a digital labour 
platform 

Digital  labour  platforms  often  have  a  multi-national  dimension,  connecting  workers  and 
clients across Europe and beyond. Due to legal fragmentation, digital labour platforms have to 
comply with  a wide  range of different  national  laws and court rulings, which hampers their 
expansion on the EU market.  

Thanks  to  the  proposed  Directive,  digital  labour  platforms  will  benefit  from  increased  legal 
clarity and certainty. In the longer term, this will reduce litigation costs and the administrative 
burden.  Through  the  common  criteria  for  the  rebuttable  presumption  at  EU  level,  digital 
labour platforms will have increased certainty on the status  of those working through them. 
This will facilitate business planning and help them organise how they operate, giving them 
the confidence to scale up, expand across borders, and take advantage of the opportunities that 
exist in the Single Market.  

False  self-employment  gives  a  substantial  and  unjustified  competitive  advantage  to  some 
digital labour platforms, vis-à-vis both traditional businesses and digital labour platforms that 
operate with an employment model. Digital labour platforms that currently classify the people 
working  through  them  correctly  will  benefit  from  a  level  playing  field,  e.g.  with  respect  to 
taxes  or  social  security  contributions.  While  in  the  short  term  digital  labour  platforms  will 
face  costs  related  to  reclassification,  in  the  medium  to  long  term  they  will  also  benefit, 
through  reduced  compliance  costs  and  increased  legal  certainty.  Indeed,  digital  labour 
platforms  operating  through  false  self-employment  are  increasingly  facing  substantial  fines 
and reclassification orders in several Member States. 

12 

 
 
6.  EU  action  on  platform  work  –  What  does  it  mean  for  national 
authorities? 

Clarity on the employment status and the related tax and social security contributions 
will support the sustainability of public budgets. Member States are expected to gain up to 
EUR 4 billion in annual contributions as a result of the reclassification measures.24 They will 
also  bear  lower  costs  in  terms  of  the  non-contributory  benefits  that  public  authorities  may 
need  to  award  to  unprotected  workers  in  order  to  address,  for  instance,  social  exclusion  or 
medical  costs.  As  such,  the  correct  classification  of  employment  status  can  have  a  positive 
impact for all taxpayers as a whole. 

In  order  to  facilitate  the  work  of  national  authorities  (such  as  labour  inspectorates,  social 
protection institutions and tax agencies) in enforcing the provisions of the proposed Directive 
and  existing  laws,  the    proposed  Directive  includes  provisions  which  aim  to  guarantee  the 
transparency  and  traceability  of  platform  work,  including  in  cross-border  situations.  These 
provisions  should  ensure  that  digital  labour  platforms  which  act  as  employers  are  aware  of 
their obligations to declare the work where it is performed. The proposed Directive requires 
digital labour platforms to make information on the Terms and Conditions for people working 
through them, the number of people working through them and under what employment status 
they  operate  accessible  to  labour,  social  protection  and  other  relevant  authorities  and 
representatives of people performing platform work. This information will have to be updated 
on a regular basis and further clarified if requested by relevant authorities.  

In addition, the Commission will:   

  support the sharing of good practices in the context of its mutual learning programme, 
as well as support to the activities of the European Labour Authority within the scope 
of its mandate; 

  continue  to  support  Member  States  with  the  application  of,  and  guidance  on,  social 

 

security coordination rules, where necessary. 
through EU programmes (such as Horizon Europe), continue to invest in research that 
can  identify  innovative  and  high  quality  forms  of  work  and  examine  risks  and 
opportunities  for  people  working  through  digital  labour  platforms  and  businesses 
alike. 

Further work on digitalisation in the field of social security coordination is also ongoing. The 
Commission  has  launched  a  pilot  project  on  the  European  Social  Security  Pass  which 
will help to address challenges in the portability of social security rights and  could leverage 
the proposed framework for a European Digital Identity (EUeID)25 to help identify them. 

24 SWD(2021)396. Impact Assessment report accompanying the proposal for a Directive on improving working 

conditions in platform work, Section 6.1 and Annex 5.  

25 COM/2021/281 final. Available online.  

13 

 
 
 
 
                                                           
In order to make the most of this new framework on platform work, the Commission calls on 
Member States to: 

  provide  support  for  enforcement  –  such  as  guidelines  or  dedicated  trainings  for 
inspectorates concerning the challenges stemming from algorithmic management; 

  uphold social security coordination rules; 
 

improve  data  collection  on  platform  work  and  develop  bilateral  channels  to  share 
relevant data with other Member States. 

7. This goes beyond our borders  

The  EU  is  leading  by  example.  Our  Union  has  already  set  the  tone  on  a  global  level  for 
addressing  key  issues  such  as  personal  data  protection  and  the  regulation  of  artificial 
intelligence systems. Our pioneering approach has placed humans at the centre of technology.  
This package is no different  – with it, the Commission aims at contributing to future global 
standards for high-quality platform work. 

As  many  digital  labour  platforms  are  global,  cooperation  across  jurisdictions  is  key. 
Setting global standards can improve legal clarity for digital labour platforms across the globe 
and therefore boost the sustainable growth of the platform economy. Some types of platform 
work  are  global  by  nature  –  people  carrying  out  online  platform  work  can  perform  their 
assigned  tasks  from  anywhere  in  the  world.  The  Commission  therefore  encourages  a  global 
governance of platform  work.  Digital  labour platforms  operate  across multiple jurisdictions, 
and so should policy-makers.  

The EU will work with its global partners to bring about decent working conditions in 
platform work across the world. The International Labour Organization is a natural partner 
in  this  endeavour.  Building  upon  its  previous  exchanges  and  collaboration  on  the  topic,  the 
Commission will propose a dedicated event to bring forward the global platform work policy 
agenda. The impact of digitalisation and globalisation on the future of work has been at the 
heart  of  our  discussions  with  the  Organisation  for  Economic  Co-operation  and 
Development (OECD). The time is now ripe to take our discussions to the next level, as we 
seek  to  tackle  the  global  challenges  related  to  platform  work.  The  EU  is  also  promoting  a 
human-centred, inclusive, fair and sustainable digital transformation and future of work in the 
context of the G7 and G20 fora.  

The Commission will also promote better working conditions in platform work in its bilateral 
agenda,  building  upon  earlier  exchanges  with  the  US  and  Canada  to  promote  international 
cooperation on platform work.  

8. Conclusions 

Digital labour platforms play an important role in Europe’s economic future, including 
for  the  green  and  digital  transitions.  However,  in  order  to  be  sustainable,  technological 
progress  must  go  hand  in  hand  with  the  respect  for  existing  social  principles  and  Europe’s 
ambition  for  further  social  progress.  This  package  seeks  to  address  the  challenges  posed  by 
platform work to our social model and ensure conditions for a sustainable development of the 
platform  economy  in  Europe  –  where  its  benefits  can  be  reaped  more  readily  in  a  more 
integrated Single Market, and its downsides prevented and tackled.  

14 

 
 
As  a  result  of  the  proposed  measures,  more  people  working  through  digital  labour 
platforms  will  benefit  from  improved  income  security  and  predictability,  better 
working-time protections,  and a safer working environment. They will  be better able to 
build up an old-age pension, have access to a social safety net to rely upon in times of need, 
and no longer fear unfair decisions taken or supported by means of automated systems. Those 
who remain or become genuine self-employed will be empowered to make their own choices 
on their working conditions, and use platform work as a way to build entrepreneurial careers. 

In addition, all people working through digital labour platforms – whether employed or 
self-employed  –  will  better  understand  and  influence  the  way  in  which  algorithms  are 
used  to  manage  their  work.  Work  performed  through  digital  labour  platforms,  including 
across  borders,  will  become  more  traceable  and  transparent.  This  will  empower  national 
authorities and social partners to play a more active role in the platform economy. 

The  proposed  measures  will  require  digital  labour  platforms,  workers  and  national 
authorities to adjust. However, these adjustments will pay off, helping to harness the many 
benefits of the digital transformation and protecting the European social market economy over 
time.  Guided  by  the  European  Declaration  on  Digital  Rights  and  Principles  for  the  Digital 
Decade  and  by  the  European  Pillar  of  Social  Rights,  the  EU  has  the  means  and  direction  it 
needs to succeed in this endeavour. 

15