Workplace Law Developments to Expect in 2022
The European Commission is taking significant strides to foster a sustainable growth of the platform economy by addressing the need for improved legal clarity for platforms and better working conditions for people working through them. This push for change is reflected in recent labor law developments across the EU, focusing on government interventions, pay transparency, work-life balance, and platform work.
**Government Interventions and Sustainable Employment**
The EU is actively promoting the development of green skills among workers, particularly in the context of circular economy practices. Vocational Education and Training (VET) is a key government tool in this endeavour, aiming to address the rapidly evolving job market and the need for green and digital skills. However, challenges remain due to the decentralized nature of education systems and the lack of EU-wide certification for these skills.
Corporate accountability is also being strengthened through directives like the EU Corporate Sustainability Due Diligence Directive (CS3D) and the Corporate Sustainability Reporting Directive (CSRD). These require large companies to conduct due diligence on environmental, social, and governance (ESG) risks, including labor conditions, and disclose their impacts. This legal framework indirectly supports sustainable and responsible employment by ensuring companies manage their supply chains to prevent forced labor and other abuses.
**Pay Transparency**
The EU Pay Transparency Directive, set to be transposed into national laws by June 7, 2026, aims to promote pay equity and transparency within companies. It mandates salary disclosures and gives employees the right to information on pay structures. Despite its potential to reduce wage gaps and promote fair compensation, many companies are not yet prepared for this directive's implementation, expressing concerns about complexity, increased workload, internal conflicts, and higher personnel costs.
**Work-Life Balance and Platform Work**
While specific recent updates on work-life balance and platform work are not detailed in the provided results, the EU has been progressively working on labor standards in these areas. The Platform Work Directive, approved in recent years, aims to improve conditions for platform workers (gig economy), ensuring better social protection, fair pay, and working hours protections. The EU's broader sustainable employment agenda also links with these labor conditions to create fairer, more inclusive labor markets that support workers' well-being and balance between professional and personal life.
These developments show an integrated approach by the EU, combining skill development, regulatory transparency, corporate accountability, and labor rights to support sustainable employment practices. The pandemic has led to shifts in labour law, affecting areas such as workers' mandatory vaccination, hybrid and remote work, travel restrictions, and access to the labour market for underserved workers. The European Commission's proposed directive on improving the conditions of platform work is an example of a policy initiative to regulate alternative employment forms.
The EU Work-life Balance Directive entered into force in 2019, and a new proposal for pay transparency and equal pay for equal work is part of President von der Leyen's agenda. Adaptive leaders recognize significant changes in workers' preferences and behaviors caused by the pandemic, and many countries are ramping up policies to meet the new realities of diverse forms of work. Employee demands for greater transparency and public pressure for more sustainability are driving the need for a new social contract that aligns with growing environmental, social, and governance (ESG) issues.
The emergence of diverse forms of work, such as remote work enabled by digital technologies, offers opportunities for skills development and better work-life balance. However, legislative initiatives and legislators need to consider flexibility and adaptability while providing security to those who need it most. Any rules that are too rigid may hinder resilience and the fluidity of the labor market. As the EU continues to navigate these challenges, it remains committed to fostering a sustainable and inclusive platform economy that benefits both businesses and workers.
The European Commission is not only focusing on improving the legal clarity for platforms and better working conditions for those working through them in the context of the platform economy, but also addressing government interventions and sustainable employment. This includes promoting green skills among workers, strengthening corporate accountability through directives like the EU Corporate Sustainability Due Diligence Directive (CS3D) and the Corporate Sustainability Reporting Directive (CSRD), promoting pay transparency with the EU Pay Transparency Directive, and working on labor standards for platforms, such as the Platform Work Directive, to ensure better social protection, fair pay, and work-life balance.
