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Monday, December 11, 2023

The European Council Handles Misclassification

With thanks to Mirjam de Blécourt and Danielle Pinedo for this upgrade.

On June 12, after prolonged settlements, the EU Council settled on the proposition for a regulation that intends to much better secure platform employees. This unlocks to settlements in between the Council and the European Parliament on the last regulation.

The regulation intends to guarantee that platform employees have or can get the suitable work status through the intro of a legal anticipation. In addition, the regulation offers guidelines relating to the openness of making use of algorithms within the platform economy.

Anticipation of Work

The regulation presents an anticipation of law, under which platform employees are presumed to be workers if the relationship in between platform and platform employee satisfies a minimum of 3 of the following 7 limitative requirements:

  1. The platform sets ceilings on the employee’s compensation
  2. The platform sets requirements for the employee relating to look, conduct towards the recipient of the service or efficiency of the work
  3. The platform keeps track of the efficiency of work, consisting of by electronic ways
  4. The platform successfully restricts, consisting of through sanctions, the flexibility of the employee to arrange their work, relating to the option of working time
  5. The platform limitations, consisting of through sanctions, the flexibility of the employee to arrange their work, relating to accepting or declining tasks
  6. The platform limits, consisting of through sanctions, the flexibility of the employee to arrange their work, relating to making use of subcontractors or alternatives
  7. The platform limits the capability of the employee to develop a customer base, or to carry out work for 3rd parties.

In practice, this might lead to numerous platform employees being categorized as workers, unless shown otherwise under the guidelines of the relevant nationwide law.

Algorithmic Openness

In addition to the legal anticipation, the regulation grants brand-new rights in regard of algorithms. These rights are primarily about openness for platform employees, who are entitled to comprehend how tasks are designated and how the evaluation of work is made. It likewise connects higher worth on the human touch, by offering platform employees the right to an evaluation of an algorithmic choice that impacts working conditions or access to the platform.


This latest advancement indicates that settlements (‘ casual trialogue’) can now begin in between the Council of the EU, the European Parliament and the European Commission with a view to reaching arrangement on the steps executed in the proposed Instruction and the settled text. When arrangement is reached, the proposed Instruction can be officially embraced.

It’s constantly tough to understand for how long these settlements might take and we will continue to publish updates here.


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