Undeclared work and bogus self-employment in the platform economy: emerging issues in focus

Digital labour platforms are becoming a major source of jobs across the EU: in 2021, more than 28 million people sourced work through these platforms, and by 2025 that figure is estimated to have risen to around 43 million. Against this backdrop, ELA has published three new reports examining emerging challenges in platform work. The publications offer detailed analysis of undeclared work practices, misclassification of work, and the anticipated impact of the Platform Work Directive. 

Output report: Challenges and approaches for tackling undeclared work on digital labour platforms 

The report published by ELA in 2025 sums up the findings of a workshop with enforcement authorities, social partners and platform experts on the growing risks linked to platform work. 

Main challenges highlighted during the workshop: 

• Identity fraud / rented accounts: several undeclared workers share one account.
• Platform leakage: when platforms and clients move their transactions off the platform to avoid oversight.
• Intermediaries obscuring employment relations: third parties making it harder to identify who is legally responsible. 

Effective measures shared by national authorities: 

• Data-sharing between platforms and authorities.
• Digital monitoring tools to detect irregular activity.
• Risk-based inspections coordinated across agencies.
• Targeted information campaigns, especially for third-country nationals. 

The report outlines practical ways countries are using strengthening enforcement as platform work expands. 

Study: ‘Addressing Platform Workers' Employment Misclassification: Legal Frameworks, Enforcement Strategies and the New Platform Work Directive’ 

The study finalised in April 2025 examines the growing problem of misclassification of work in digital labour platforms and the legal tools used to address it. It also provides a concise overview of how regulators and enforcement authorities are gradually adapting to misclassification risks in platform work.

Main aspects covered by the study:

• Platform Work Directive (EU 2024/2831):
  • Establishes a rebuttable presumption of employment, placing the burden of proof on platforms.
  • Applies the principle of primacy of facts, with real working conditions defining contractual status.
  • Requires Member States to set up procedures to confirm correct employment status and protect workers hired through intermediaries.
• National approaches:
  • Reviews which countries apply employment presumptions, either platform-specific or economy-wide.
  • Examines enforcement systems, from administrative reclassification to court-based approaches.
  • Includes EU and international examples of initiatives aimed at facilitating the correct employment status.
• Tools and good practices:
  • Highlights guidelines, awareness campaigns, inspector training, and digital self-assessment tools.

  • Emphasises stronger cooperation and information sharing between Member States.

     

Output paper: ‘Addressing Employment Status Misclassification in Platform Work: Output Paper of the 18th plenary meeting of the Platform tackling undeclared work’

The paper summarises discussions held at the thematic day of the 18th plenary meeting of the Platform tackling undeclared work. It captures practical ways to improve enforcement and tackle bogus self-employment in platform work.

Key points:

• Focus on how the Platform Work Directive supports correct employment status.
• Member States reported progress but continued challenges, including cross-border enforcement, limited inspector training and evolving platform avoidance tactics.
• Participants stressed the value of digital tools, inspector upskilling, certification models and joint liability schemes.
• Enforcement authorities favoured administrative reclassification to deliver quicker, more affordable decisions.
• Strong social partner cooperation remains essential, especially for awareness raising among persons performing platform work.