Platform work at a crossroads: The EU Directive shaping the future of digital labour

I.   Shifting the balance: employment presumptions for platform workers

The Platform Work Directive introduces key mechanisms to clarify the employment status of individuals engaged in platform work. Member States are required to establish effective procedures that enable public authorities to determine, based on national law, collective agreements and established case law, whether an employment relationship exists. At the core of this framework is a rebuttable presumption of employment. If indicators of direction and control are present, it is presumed that a person working via a digital plat-form is in an employment relationship. The burden of proof lies with the platform, which must demonstrate that the worker operates independently to rebut this presumption.

II. Taming the algorithm: how the EU protects platform workers' data

1)   Consent is no longer enough

The Platform Work Directive introduces key safeguards for the processing of personal data in platform work. Recognising the structural power imbalance between platforms and workers, the EU legislator states that consent can no longer be considered freely given – and therefore not a valid legal basis – for data processing in most platform work scenarios.

2)   Strict limits on automated data use

To mitigate this, the Directive imposes strict limitations on the types of personal data that may be processed through automated systems. These include automated monitoring systems (technologies used to electronically monitor or evaluate work performance or workplace activity) and automated decision-making systems (systems that take or support decisions significantly impacting working conditions – such as task allocation, remuneration, access to work or account deactivation).

The Directive explicitly prohibits the automated processing of certain sensitive categories of data, including: (i) data on the emotional or psychological state of the platform worker; (ii) private communications; (iii) personal data unrelated to platform work; (iv) data used to predict the exercise of fundamental rights (e.g. union activity, information and consultation rights); (v) data revealing racial or ethnic origin, migration status, political or religious beliefs, disability, health status (including chronic illness or HIV), trade union membership, sexual life or orientation; and (vi) biometric data used to identify individuals through database comparisons.

3)   Mandatory Data Protection Impact Assessments

Recognising the high risks posed by automated monitoring and decision-making, the Directive requires platforms to conduct a Data Protection Impact Assessment (DPIA) under Article 35 GDPR before deploying such systems. The DPIA must assess potential risks, outline safeguards and security measures, and – unlike the GDPR – mandates consultation with both the data protection officer and the affected platform workers or their representatives. DPIA documentation must be securely stored to demonstrate compliance during official reviews.

4)   Transparency and information rights

The Platform Work Directive further introduces robust transparency obligations for digital labour platforms using automated monitoring or decision-making systems. Member States must require platforms to inform platform workers, their representatives and – upon request – competent authorities about the deployment and functioning of such systems. The timing, form and content of this information will be determined at the national level but must in any case be provided prior to system implementation or changes, and subsequently upon request.

Workers are entitled to request detailed information about any automated systems in use. This includes: (i) the fact that such systems are in use or are planned for implementation; (ii) the categories of personal data and actions monitored or evaluated, as well as the types of decisions supported; (iii) the system's purpose and main decision-making parameters, including how personal data or behaviour influence outcomes; (iv) the recipients of the data; and (v) the reasons and legal grounds for any restrictions, sanctions or other measures taken.

In addition, workers have the right to data portability for all work-related data generated through platform use, such as ratings and reviews.

5)   Worker control and oversight

The Directive further obliges platforms to regularly monitor the impact of automated systems. Significant decisions – such as account suspensions or terminations – must be subject to human oversight. Platform workers have the right to request a review of such decisions and to receive clear explanations.

III.       Implementing the Platform Work Directive: legal and practical challenges

By 2 December 2026, Member States are required to transpose the provisions of the Platform Work Directive into national law. This will likely pose significant challenges, especially regarding procedures to determine the employment status of platform workers:

• Rather than mandating a uniform approach, the Directive leaves this discretion to Member States, which may lead to varying labour law interpretations – particularly in distinguishing between employment and self-employment. Notably, the legal presumption of employment does not extend to tax, criminal or social security proceedings.
  
  
• Additionally, the Directive introduces tailored rules on data protection in platform work, likely requiring updates to national laws to ensure compliance. These rules complement existing frameworks like the GDPR by imposing stricter limits on data processing, mandating human oversight and enhancing transparency.
  
  

The specific approach of the Austrian legislator remains to be seen. However, platform operators should prepare for substantial compliance efforts – particularly regarding data protection, employment classification, algorithmic transparency and monitoring obligations. Businesses reliant on platform work are well advised to closely track legislative developments and proactively align internal processes with the evolving legal framework. 

authors: Teresa Waidmann, Florian Terharen, Franziska Waltersdorfer