Regulatory issues surrounding platform work have received increasing attention from national and supranational authorities and in the academic literature, particularly focusing on the applicability of the legal concept of the traditional employment relationship (Eurofound, 2018a, 2018b and 2019).
Employment status
Despite being one of the main topics in the debate on platform work, the employment status of platform workers generally remains uncertain from a regulatory perspective. Platform work is blurring the boundaries between traditional employment statuses and, in particular, between employees and self-employed workers. For this reason, it is not always easy to determine the status of a platform worker.
As of mid-2020, no Member State has clear regulations specifying the employment status of platform workers. As a result, any employment status that is recognised within existing regulatory frameworks is possible for platform workers, which typically make a distinction between employees and self-employed workers.
In some countries, one or more additional categories or subcategories of these two worker statuses (employee and self-employed) exist, such as the ‘micro-entrepreneur’ status in France, the ‘employee-like’ status in Austria and Germany, the ‘quasi-subordinate worker’ in Italy, ‘student work’ in Belgium and Slovenia, and ‘contract for services’ in Croatia. In a few countries, there is an ongoing debate on introducing such a third status explicitly for platform workers.
Voices in favour of establishing a third legal category of workers claim that such a status would take on qualities of both employee and self-employed and that it could serve to protect platform workers without unduly harming the potential of the platform economy. Critics of the proposal to create a third category of employment status suggest that as neither of the two existing categories apply well, a third is unlikely to solve the problem.
In practice, the terms and conditions of the platform determine the employment status, and in most cases, this means that platform workers are considered self-employed.
Self-employed workers fall outside the scope of EU labour law and are in many countries not, or only partially, covered by the Written Statement Directive (91/533/EEC). The directive has existed since 1991 and gives employees starting a new job the right to be notified in writing of the essential aspects of their employment relationship. In 2017, within the framework of the European Pillar of Social Rights, the European Commission proposed an important revision of the Written Statement Directive – that is, the EU Directive on Transparent and Predictable Working Conditions (Directive 2019/1152). The directive aims to set new rights for all workers in all forms of work, particularly addressing insufficient protection for workers in more precarious jobs, while limiting burdens on employers and maintaining labour market adaptability. In principle, platform workers are covered by this directive to the extent to which the criteria used for the definition of ‘worker’ are fulfilled (‘a natural person who performs services, for and under the direction of another person, in return for remuneration’ – accordingly more relevant for the on-location platform-determined than for the on-location worker-initiated type of platform work). Following negotiations, a political agreement between the Council, the Parliament and the Commission was reached in February 2019. The Council adopted the directive in June 2019.