Regulating digital impact on the workplace

Platform Workers Directive: New era for digital labour   

The increasing accessibility of online services, accelerated during the Covid-19 pandemic, shed light on several challenges related to digital work. The Platform Workers Directive seeks to address these issues by improving working conditions in the so-called “gig economy”, while supporting the sustainable growth of digital labour platforms.

Currently, a significant part of platform workers in the EU are formally considered sole entrepreneurs, while their working conditions often resemble regular employment. To fix this discrepancy, the directive introduces the concept of a reputable presumption of employment, designed to decrease the size of the grey zone many platform workers find themselves in when it comes to their employment status and how they are managed by their seniors.

Another aspect regulated by the directive is use of algorithmic management in the field of HR, with transparency emphasised as the priority. Workers should be informed if such systems are used and should have the right to contest automated decisions. Additionally, these systems must be monitored by qualified staff.

However, we are yet to see the directive’s impact on the world of digital work, as its effectiveness and the consequences of noncompliance will largely depend on the EU member states’ existing legislations and implementations to come.

Algorithmic management: Balancing efficiency and workers’ rights

The Platform Work Directive addresses algorithmic management as a core feature of the platform business model. According to a 2023 Joint Research Centre study, 10-20% of platform workers (as sampled in Spain and Germany) are subject to digital monitoring and algorithmic management, with the most common form being the automated allocation of work.

With the current legislation serving as a foundation, further regulation regarding algorithmic management is under discussion. The European Commission’s Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness, Roxana Mînzatu, has expressed plans to continue working on such an initiative, while “incorporating the ‘human in control’ principle in the world of work”. 

Furthermore, upcoming legal changes are expected to cover the “right to disconnect”. Already implemented in a few member states, this policy acknowledges the increasing difficulty of separating work from personal life in the digital age, and acts to prevent burnout and improve work-life balance.

Only time will tell how these measures will translate into the real world, but with increasing digital development, we need to keep evolving to try to stay ahead, or at least keep up.

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Emilia Łowczyk is most comfortable navigating regulatory requirements, with an emphasis on data protection and employment matters.