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Substantial Changes Proposed for Online Delivery Platform Employees

on Friday, 17 December 2021.

Online platforms such as Uber and Deliveroo may need to start recognising some workers as employees following the announcement by the European Commission of a proposed new EU Directive.

The European Commission has announced that, in an attempt to improve the working conditions of online platform workers, it proposes to introduce a new Directive which will aim to support the sustainable growth of online platforms in the EU.

The proposed Directive would seek to ensure that people working through online platforms enjoy the employment status that most accurately underpins their working arrangements.

How Will Employment Status Be Determined?

The proposal lists the following five factors which will help to determine whether the relationship between the parties is one of employment:

  • whether the platform sets the worker's pay
  • whether the platform sets conduct and appearance standards
  • whether work is supervised electronically
  • whether workers are restricted in their ability to choose their working hours/tasks
  • whether workers are prevented from working for third parties

If at least two of those criteria are met, then the online platform will be presumed to be an employer. Platforms would be able to appeal against the determination of the individual's working status. The burden of proving the nature of the relationship would rest on the platform.

The proposed Directive also intends to improve the transparency of the algorithms that are used for monitoring and evaluation, allocating tasks, and setting fees. Online platforms would be required to explain to workers how their algorithms work.

What Does This Mean for UK Employers?

The proposed Directive is reflective of the general trend towards properly and fairly protecting gig economy workers across all sectors. Online platforms and other business operating within the gig economy should carefully consider the employment status of their workers - taking into account the extent to which the five criteria set out above apply to their particular working arrangements.

Following Brexit, EU Directives don't have direct effect in UK law. However our domestic courts and tribunals may take them into account as far as they are relevant. They may also influence future UK Government policy, and this proposed Directive will be relevant to online platforms that operate within the EU. This is therefore definitely a topic for employers to note, even in the post-Brexit world.


For assistance determining employment status, please contact Sian James in our Employment Law team on 0117 314 5331, or complete the form below.

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