The gig revolution: EU and ILO gear up to transform platform work

The platform economy, also known as the gig work economy, has experienced exponential growth in recent years, especially during the COVID-19 pandemic. This model, where individuals or organizations use online platforms to offer services, from delivery to childcare, has become a vital part of modern labour markets. By 2025, the number of platform workers in the European Union is expected to reach 45 million. However, with this rapid expansion comes growing concern about workers' rights, as most platform workers are classified as self-employed, leaving them outside the protection of traditional labour laws.

Currently, platform workers across the EU are typically categorised as independent contractors, meaning they lack basic protections like sick leave, paid vacations, and dismissal protections. In many cases, these workers engage in service contracts rather than formal employment, which grants them flexibility but denies them security. The absence of a unified legal framework has raised significant concerns about the precariousness of their working conditions, as the current labour regulations often do not address the unique dynamics of platform work. In a case the Hungarian Supreme Court ruled a food courier worker’s relationship as a permanent service contract, mostly based on the fact that the worker decided when and how much to work, thus determining the basic conditions of employment.

To address these issues, the European Union adopted a directive in March 2024 aimed at providing clearer rules for platform work. One of the key elements of the directive is the presumption of an employment relationship for platform workers under certain conditions. If a worker’s relationship with the platform meets at least two out of five specific criteria – such as restrictions on pay, supervised task distribution, limited freedom for the worker to organize their work, limits on work hours or rules on appearance or behaviour – they will be considered employees rather than independent contractors. This would entitle them to the same protections as traditional employees, significantly improving their working conditions.

In parallel, the International Labour Organization (ILO) is also preparing to address platform work on a global scale. At its 2023 session, the ILO decided to begin developing global standards for fair work in the platform economy, to present an agreement by 2026. The standards, once adopted, could set a global precedent for regulating platform-based work, ensuring that gig workers receive fair treatment and better working conditions. This could serve as a blueprint for countries to update their national labour laws to address the evolving nature of work.

The introduction of these regulations could radically shift the power dynamics in the platform economy. Platforms that rely on algorithmic management and automated systems to monitor and direct workers will be required to disclose these processes. Workers will also have greater protections regarding their personal data, with strict limitations on the use of sensitive information like emotional state or political opinions. Importantly, only trained personnel would be allowed to monitor these systems, adding another layer of worker protection against misuse or discrimination. The EU directive and ILO standards represent important steps towards addressing these challenges, balancing flexibility with necessary worker protections. Once they become applicable, they could set a new global standard for how governments and platforms treat platform workers, offering a more secure and fair future for those in the platform economy.