The Future of Work cannot be set in stone

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BrusselsReport.eu
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By international affairs specialist Glen Hodgson of Swedish think tank Free Trade Europa

In central Stockholm stands a statue entitled “The Worker” by Mikael Katz (picture). With a furrowed brow, muscular chest and heavy mallet in hand, the subject is captured in the middle of carrying out a physical, dour task. At the end of the 1800s – when this sculpture was completed – “work” was often carried out in a factory, in a field or down a mine. Something often to be endured.

While the world of work has been revolutionised by technology, many of the principles and processes associated with “work” appear to be set in stone and have thus changed very little. This is also very true of the mindsets of many politicians, policy makers and stakeholders who are involved with developing European labour market policy.

The EU Platform Work Directive is set to be formally adopted by EU member states in the coming weeks, and following this, they will have two years to implement the legislation into their national law. As national politicians and officials prepare to get to grips with the implementation, there are a number of issues that they should bear in mind to facilitate the future of work.

Definitions should be tightened up

The vague and expansive definition of a “digital labour platform” significantly broadens the Directive’s scope. This needs to be clarified at the national level. If not, then millions of independent workers from across the EU will be unintentionally misclassified. This includes a whole host of sectors from IT developers, medical professionals, educators and architects to photographers, cleaners, musicians and artists: everyone who uses online platforms to connect with clients, in effect. These platforms, which facilitate the provision of services, could inadvertently be presumed as employers, thereby imposing unintended legal and operational constraints on independent professionals.

No general presumption of employment

The decision on whether individuals should be deemed employees should be made on the basis of national criteria. For example, if 3 out of 7 classification criteria are met, then an individual should be classified as an employee. It is vital that national legislation does not force thousands of entrepreneurs, freelancers and one-person companies into employment relationships against their will. A forced shift from an autonomous business model to a rigid employment structure would be terrible for independent talent and severely diminish the flexibility and freedom that is fundamental to why many choose freelancing and platform work.

Algorithmic management cannot mean universal human oversight

While provisions are needed to prevent practices such as “robo-firing”, it is vital that national legislation does not require every single algorithmic decision to be supervised by a human. The efficiency and benefits of freelancing, platform work and the digital economy as a whole often rely on automated processes. A requirement of human oversight would introduce undue delays, more costs and increased operational processes and unnecessary bureaucracy. It would also be unworkable from a practical perspective. As such, the Platform Worker Rights should align with the AI Act. This Regulation adopts a clear risk-based system whereby human oversight is only required if there is a high risk to health and safety. Furthermore, national legislation should not go beyond the requirements of the EU General Data Protection Regulation (GDPR) but should rather be aligned with it.

Remote and flexible work are here to stay

In spite of recent calls by some industry leaders to return to the office, workers have adapted to flexible, remote and hybrid solutions and show no signs of changing back to the 9 to 5. Most workers, companies and organisations also have a great deal to gain from the benefits to efficiency, productivity and cost-savings that flexible work can bring.

This means that organisations need to adapt to the requirements of open talent while offering fractional roles as well as utilising freelancers, gig workers and contractors in addition to full-time employees. This calls for a freelancer strategy and a corporate commitment to blended teams in order to maximise operational and cost efficiencies as well as attract the right talent for the organisation. National legislation needs to facilitate this reality, rather than hider it.

Talent clouds and elastic teams are the now of work

In addition to companies needing a freelancer strategy, organisations need to reap the benefits that are offered by talent clouds and elastic teams. These allow entities access to a vast amount of expert, pre-vetted talent which will allow them to increase efficiencies and productivity as well as scale their business up and down very quickly in response to market trends. This also allows companies to focus on tasks and value-added as opposed to job titles. The evidence clearly shows that organisations big and small who are utilising talent clouds and elastic teams are reaping the benefits. Once again, legislators need to be aware of this reality.

When it comes to the future of work, national legislation needs to be flexible enough to cover the current realities as well as the ongoing changes across labour markets brought about by technology and changing demands. In a rapidly changing environment, the only things that can be set in stone across Europe are the statues.

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