The Platform Workers Directive aims to ensure platform workers have their employment status classified correctly, to correct "bogus self-employment" and to regulate the use of algorithms in the workplace. 

When workers are hired through digital labour platforms, the Directive automatically assumes they are employees, not self-employed. This is triggered by evidence of supervision and guidance, in line with domestic laws, collective bargaining agreements, and considering precedents set by EU case law.  Member States will be required, in their domestic legislation, to legislate for these arrangements with the presumption that the workers should have employment rights (passing the responsibility to the business of proving that they are self employed).  

Digital labour platforms for this purpose will include:  – any natural or legal person providing a service, which meets the following requirements:

• It is provided, at least in part, at a distance through electronic means, such as a website or a mobile application.
• It is provided at the request of a recipient of the service.
• It involves, as a necessary and essential component, the organisation of work performed by individuals in return for payment, irrespective of whether that work is performed online or in a certain location.
• It involves the use of automated monitoring or decision-making systems.

Under the Directive, platform work is regarded as any job facilitated through a digital labour platform in the EU, based on a contractual relationship between the platform (or an intermediary) and the individual, regardless of a direct contract with the service recipient. Platform workers are those with an employment contract or relationship, as recognised by national laws, collective agreements, practices, or EU case law.  While, applying these criteria not all individuals performing platform work will meet the criteria to be considered platform workers under the Directive, but certain Directive provisions, like data processing restrictions, will apply to all individuals engaging in platform work. 

Currently, in Irish law, the status of platform workers along with the associated rights and responsibilities that come with employee status is dependent on the facts of their engagement, including their contractual terms. 

In October 2023, the Irish Supreme Court in the case of Revenue Commissioners v Karshan (Midlands) Ltd t/a Domino's Pizza, relating to delivery drivers engaged to provide delivery services set out a series of tests to be considered when determining the status of a worker. While that case did not involve platform workers, the tests are relevant to platform workers. The Court summarised the tests to include:

• If the contract involves the provision of wages or other compensation in exchange for labour?
• If so, whether the contract specifies that the individual is to offer their personal services directly to the employer, rather than those provided by a third party? 
• If so, whether there is adequate control exerted by the employer over the individual to classify the arrangement as an employment contract?
• Should the first three conditions be satisfied, it must then be determined by the decision maker if the contractual stipulations and the practical work conditions align with those typical of an employment relationship, or if they suggest a different contractual nature.
• Finally, it must be evaluated whether any aspect of the applicable legislative framework necessitates the court to modify or add to the above criteria.

According to the new criteria established by Karshan and depending on the facts of the engagement, certain platform workers may fulfil the criteria for employment status. This likelihood increases in scenarios where evidence of control by the employer is evident, such as:

• In instances where platform workers face repercussions for declining work. 
• When the written contractual terms fail to reflect the actual work conditions, or
• When workers are restricted from arranging substitutes for their roles. 

Additionally, the Directive will enforce stricter data processing limitations. It will preclude digital labour platforms from handling specific personal data categories, including personal beliefs, mental health, and medical information.  It will also impose constraints on processing private communications among colleagues. 

Data collection is not permitted when individuals are not actively engaged in offering or performing platform work. These data processing restrictions are applicable to all individuals from the onset of their recruitment or selection process. Moreover, platforms must conduct data protection impact assessments for individuals engaged in platform work.