The EU directive on riders and digital workers passes its final hurdle. Member States’ approval closes a three-year process

Brussels – It was December 9, 2021, when the European Commission put the proposal to strengthen the rights of digital labor platform workers on the table. Almost three years later, Europe’s nearly 30 million ‘gig workers‘ can breathe a sigh of relief: the so-called ‘rider’ directive will become law. This morning (Oct. 14) was the final step of a process that was grueling and not without controversy, with the green light from member states. 

The directive will make using algorithms in human resources management more transparent, ensuring that qualified staff monitors automated systems and giving workers the right to contest automated decisions. Most importantly, it will seek to curb the bogus self-employment phenomenon, which the EU estimates affects about 5.5 million workers. On this issue, a heated clash has been ongoing over the past year between the European Parliament and the governments of the 27 member states, which several times boycotted the new rules. Today, EU ministers all voted in favor of the directive except Germany, which has historically opposed it and decided to abstain. 

The original agreement of Dec. 13, 2023, between the European Parliament and the Council of the EU provided to establish harmonized criteria throughout the EU to trigger the presumption of employment. Out of five indicators, at least two had to be there to uncover fictitious self-employment. But, surprisingly, as many as 12 member countries rejected the law at the formal approval, forcing the EU Council presidency to formulate a new compromise and return to negotiations with a furious European Parliament. . But, surprisingly, as many as 12 member countries rejected the law at the formal approval, forcing the EU Council presidency to formulate a new compromise and return to negotiations with a furious European Parliament. 

Therefore, the Belgian six-month presidency proposed to soften the constraints on the presumption of employment. The text endorsed Feb. 8, indicated that this will be triggered “when facts indicating control and direction occur, according to national legislation and collective agreements in force.” There were no harmonized criteria among member countries but an obligation for national governments to “establish a relative legal presumption of employment at the national level.” Instead, the compromise kept intact the principle of reversal of the burden of proof, whereby it would be up to employers — the platforms — to gather evidence to prove that a worker is truly self-employed, not the other way around, as it has always been.

Incredibly, just one week later, this second text fell through at the formal adoption phase in the Council due to a minority bloc comprising France, Germany, Greece, and Estonia. Finally, on the last date available on the agenda of the Belgian EU Council presidency, March 11, 2024, Paris and Berlin remained isolated, and the directive was finally approved.

With today’s formal adoption, the directive will now be published in the Official Journal of the EU, giving member states two years to incorporate the directive’s provisions into their national legislation. By then, the European Commission estimates, there will be more than 40 million digital platform workers in Europe.