Platform Work – New Frontiers of Disguised Employment

In the Czech Republic, up to 175,000 workers are currently employed on digital platforms, according to a study by PAQ Research, and their number is expected to continue growing. However, such workers are not only couriers or drivers operating under platforms like Bolt, Uber, or Foodora; they also include programmers, creatives, cleaning services, childcare providers, tutors, and other professions. These individuals typically work independently, outside of an employment relationship, yet their work often exhibits characteristics of dependent employment.

This emerging ‘grey area’ of the labor market is surrounded by many uncertainties, as current labor law does not adequately define these relationships between workers and platforms. As a result, the position of platform workers is significantly weaker compared to regular employees, and their rights are more limited.

The Chamber of Deputies is currently preparing a new law on digital platform work. This amendment aims to transpose an EU directive into the national legal framework no later than December of this year.

The law primarily seeks to strengthen the protection of platform workers.

Presumption of Dependent Work – Establishment of Employment Relationship by Law

For situations where a worker formally operates as self-employed but in reality performs work under conditions similar to those of an employee, the law introduces a presumption of an employment relationship. If the work shows characteristics of dependent work, an employment relationship will be presumed by law. It will then be up to the digital platform to prove otherwise.

Platform-based ‘disguised employment’ will no longer be classified as illegal work but will instead fall under the category of undeclared work (i.e., situations where the employer has failed to meet registration obligations). If undeclared work is identified, an employment relationship will automatically be deemed to exist between the employer and the individual performing the work. In such cases, the employer will be required to fulfill all obligations arising from the employment relationship.

New Definition of Dependent Work

The law also introduces a new definition of dependent work (beyond EU requirements) to make it easier to assess when an activity is still independent and when it qualifies as dependent employment. This responds, among other things, to the existent czech case law.

The core characteristics will be limited to the employer’s authority and the employee’s subordination, as well as the performance of work on behalf of the employer. A relationship of authority and subordination will be considered present if:

a) the employer organizes the work,
b) the employer supervises the performance of the work,
c) the employee performs the work according to the employer’s instructions, and
d) the employee performs the work during working hours.

All of these criteria must be fulfilled simultaneously.

Algorithmic Management of Work Under Greater Control

The new law also focuses on how platforms organize work using digital tools. Algorithms today often assign tasks, evaluate performance, and influence remuneration. The new rules therefore introduce greater transparency—platforms will be required to ensure more transparency in these systems and provide human control over key decisions. Certain important decisions will no longer be allowed to rely solely on automated systems and must instead be made by a human.

The changes will also affect data protection. The directive limits the scope of data that platforms may collect and process about workers through automated systems.

Protection of Workers’ Privacy and Data

The directive further stipulates that people working via platforms must be able to communicate with each other securely and privately, either through platform tools or in another comparable way. Platforms should not have access to or monitor these communications. This may influence the setup of internal communication systems and strengthen workers’ rights to organize and advocate for their collective interests.