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Prepare for ‘gig economy’ directive – Matheson

Lawyers at Matheson have urged employers to look at whether they come within the scope of an EU directive on platform work, also known as the ‘gig economy’.

They note that the Platform Work Directive was published in the EU’s Official Journal earlier this month, giving member states until 2 December 2026 to transpose its provisions into national law.

In a note on the firm’s website, the Matheson lawyers say that the directive defines platform work as ‘any work organised through a digital labour platform and performed in the EU by an individual on the basis of contractual relationship between the digital labour platform or an intermediary and the individual’.

They note that it covers employers that largely operate in the gig economy, such as food-delivery and taxi services – although it is not restricted to these cases.

Karshan case

Matheson says that the directive sets out a presumption of an employment relationship between a digital labour platform and a person performing platform work that is triggered when there are facts indicating that ‘direction and control’ are present, considering national law, collective agreements, and EU case law.

The lawyers note that the focus on ‘direction and control’ is in line with the factors set out in The Revenue Commissioners v Karshan (Midlands) Limited t/a Domino’s Pizza in determining employment status in Ireland.

“In the Karshan case, the Supreme Court set out a five-step test in determining an individual employment status. This test has been reflected in the recently updated Irish Code of Practice on Determining Employment Status, which was published earlier this month,” they state.

According to Matheson, the directive also provides that member states should not allow attempts to avoid its provisions by using intermediaries, such as sub-contracting arrangements.

New obligations

The firm’s lawyers explain that the measure introduces several new obligations in relation to the use of automated monitoring and decision-making, in addition to safeguards for platform workers.

These include data-protection rights, the right to challenge AI decisions, and protections for workers from penalisation for attempting to enforce their rights.

Matheson urges employers to review their work practices, look at updating their GDPR policies, and “pre-emptively address” forthcoming obligations related to algorithmic oversight.