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Platform work: an employment contract by presumption

platform-work

Directive (EU) 2024/2831 must be transposed into Bulgarian law by 2 December 2026. What changes for platforms, for the businesses that work with them and for the people who work through an app.

Why the topic matters right now?

The courier delivering food, the driver on a ride-hailing app and the freelancer picking up tasks through an online platform in Bulgaria most often work as self-employed persons or under a civil-law contract. In practice, however, the app allocates their orders, sets the price, tracks their route, rates them and can “deactivate” them. This is a form of control that closely resembles an employer’s authority.

Directive (EU) 2024/2831 on improving working conditions in platform work is the EU’s answer to this mismatch. The deadline for its transposition expires on 2 December 2026. At the time of writing, a draft law transposing the Directive has not yet been published for public consultation.

The core: a rebuttable presumption of an employment relationship

The most important innovation is the legal presumption (Article 5 of the Directive). The contractual relationship between a digital labour platform and the person performing work through it is presumed to be an employment relationship where facts indicating control and direction are found. Those facts are assessed in accordance with national law, collective agreements and the case law of the Court of Justice of the EU.

The practical consequences are threefold:

  • The burden of proof is reversed. The platform must prove that the relationship is not one of employment. The worker does NOT have to prove that they are an employee.
  • The presumption applies in administrative and judicial proceedings. It may be relied on by the person concerned, by trade unions and by the enforcement authorities. It does not apply in tax, criminal and social security proceedings, unless national law provides otherwise.
  • Protection against an increased burden on the worker. Member States must ensure that the presumption does not increase the burden of requirements on persons performing platform work or their representatives in proceedings to determine their status.

It is important to stress that the presumption does not automatically turn everyone into an employee. It merely shifts the burden of proof onto the party that holds all the data, including the algorithms through which it manages the work.

How this fits into Bulgarian law?

From the perspective of Bulgarian law, the logic is not new. Under Article 1(2) of the Labour Code, relationships involving the provision of labour are to be regulated only as employment relationships. The courts have long looked beyond the label of the contract and examined its actual features: personal performance, working time and place of work, subordination and disciplinary authority. In addition, the Labour Inspectorate may declare the existence of an employment relationship under the procedure of Article 405a of the Labour Code.

The problem is that these features are hard to “see” under algorithmic management. Working time “runs” in the app, and the workplace is the saddle of a bicycle. The Directive gives courts and enforcement authorities a tool adapted to this reality.

What happens if the Bulgarian law is late?

If the Labour Code is not amended by 2 December 2026, the Directive will not automatically “kick in” in the relationship between the platform and the person working through it. According to the case law of the Court of Justice of the EU, directives have no horizontal direct effect (only vertical effect – against the State) and cannot of themselves impose obligations on private parties. Platforms are private companies, so a person cannot bring a claim against a platform directly on the basis of the Directive.

Once the deadline has passed, Bulgarian courts are obliged to interpret national law, as far as possible, in the light of the Directive. Thus, in a claim for a declaration that an employment relationship exists, and also in an inspection by the Labour Inspectorate under Article 405a of the Labour Code, the Directive’s criteria of “control and direction” may be used in interpreting Article 1(2) of the Labour Code.

New restrictions on the processing of personal data

The Directive builds on the General Data Protection Regulation (GDPR) with specific rules for platforms. They apply to everyone who works through a platform, whether they are employees or self-employed, and already from the recruitment stage.

Platforms may not use automated systems to process data on:

  • the emotional or psychological state of the person;
  • private conversations, including exchanges with other workers and their representatives;
  • periods when the person is not working and not offering work through the platform;
  • the exercise of fundamental rights such as freedom of association, collective bargaining and the right to strike, including attempts to predict them;
  • racial or ethnic origin, migration status, political and religious beliefs, health status, disability, sexual orientation and trade union membership, including inferring them from other data;
  • biometric data used to establish identity by comparison against a database.

Platforms’ obligations

The platform must carry out a data protection impact assessment and provide it to the workers’ representatives. It must also inform workers in writing, no later than the first working day, which automated monitoring and decision-making systems it uses and what data they collect. Workers also gain a right to portability of the data generated by their work, including ratings and reviews. This way, the reputation they have built up can be transferred to another platform.

What platforms and intermediaries should do now

  1. Audit the contractual model. Check which mechanisms (pricing, mandatory shifts, ratings, sanctions, bans on working for competitors) may qualify as control and direction.
  2. Document independence. If the model is genuinely one of self-employment, the evidence for this should be gathered now rather than at the first inspection.
  3. Review algorithms and data processing. A GDPR impact assessment is needed, along with removal of the prohibited categories of data and the introduction of human review of deactivation decisions.
  4. Appeal procedures. Set up a channel through which the person can obtain an explanation and request a review.
  5. Monitor the legislative process. The specific criteria, sanctions and procedures will be laid down in Bulgarian law.

Conclusion

Directive 2024/2831 does not prohibit platform work, but in some cases it may place the algorithm under the same legal scrutiny as any direct manager and employer. For platforms that already operate this way, the change will be mainly a matter of documentation. For the rest, from 2 December 2026 there is a risk of claims, inspections and sanctions.

For more information, please get in touch through our contact page.

This article is for information purposes only and does not constitute legal advice on any specific case. It reflects the state of the law as at the date of publication.



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