The European Parliament, in collaboration with EU member states, has finalised a deal on regulations designed to enhance working conditions for individuals engaged in app-based work, such as ride-hailing drivers.
According to the newly established law, numerous platform workers in Europe may be reclassified as employees, thereby gaining access to essential labor and social protection rights, as outlined by the parliament.
Approximately 5.5 million individuals could be currently “wrongly classified as self-employed,” a situation the parliament aims to rectify.
With around 28 million gig workers relying on online platforms in Europe, a number projected to increase to 43 million by 2025, the agreement represents a significant milestone in establishing a legislative framework for digital platform workers.
MEP Elisabetta Gualmini, the rapporteur leading the text in parliament, described the agreement as “revolutionary,” highlighting the inclusion of transparency and accountability for algorithms, improved rights for vulnerable workers, and fair competition for platforms.
The new rules establish that meeting two out of five “indicators of control or direction” will presume a worker’s status as an employee, with member states having the option to expand the list.
Moreover, the regulations grant platform workers access to information about how app algorithms function and the impact of their behaviour on decisions made by automated systems. The parliament emphasised that platforms cannot terminate workers or suspend accounts without human oversight.
In addition, the rules impose stricter regulations on personal data, prohibiting platforms from processing data related to personal beliefs and private exchanges among colleagues.
Nicolas Schmit, the EU’s Commissioner for Jobs and Social Rights, welcomed the agreement, noting that riders and drivers will now receive the social and labour rights to which they are entitled, while platforms gain legal certainty.
The text will be formalized into law upon adoption by member states and the parliament.
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