Description
The Estonian Government officially approved a draft Platform Work Act on 27 August 2026 (signed in September 2026), introducing a rebuttable presumption of employment and algorithmic management rules before sending the bill to Parliament.
Section 8(1): the legal presumption of an employment relationship applies by referencing Section 1 of the Employment Contracts Act (Töölepingu seadus).
Under Section 7, establishing whether a relationship is an employment contract depends on the degree of direction and control exercised by the platform. This includes control exerted through automated monitoring or decision-making systems regarding task assignments, pricing/remuneration, activity supervision, or account limitations.
Under Section 4(2), classification is determined by the actual nature of the work performed (primacy of facts), regardless of how the parties label the contract
To successfully rebut the presumption, the platform must demonstrate that:
- The worker exercises genuine entrepreneurial autonomy.
- The worker decides independently when and how much to work without facing system penalties, loss of access to tasks, or account restrictions.
- The platform does not exercise direction or subordination over the execution of the work.
The draft Estonian Platform Work Act sets strict limits on algorithmic management by prohibiting platforms from using automated monitoring or decision-making systems to process sensitive personal data, including workers' emotional or psychological states, private communications, biometric data, or off-duty activity. Platforms must maintain continuous human oversight over automated systems, explicitly banning fully automated decisions that adversely affect workers—such as account suspensions, terminations, or pay withholdings—and requiring direct human intervention for any such action. Additionally, platforms must provide clear transparency regarding the logic and parameters of their algorithms, while granting workers the right to obtain written explanations and demand a human review within 14 calendar days for any automated decision affecting their working conditions or contractual status.
- Actors
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Government
Sources