Employment by algorithm: Lithuania moves to tighten rules for platform work

Lithuania’s parliament has taken the first step toward tightening rules for digital labour platforms – such as food delivery or ride hailing apps Wolt and Bolt – with proposed legislation aimed at improving working conditions and increasing transparency in algorithmic management.

The amendments, presented to lawmakers Tuesday by Deputy Social Security and Labour Minister Aušra Putk, would make it harder for platforms to classify workers as independent contractors if they cannot freely negotiate service prices or access essential job details, such as rates and addresses, before accepting assignments.

Lawmakers asked whether the changes would increase service prices.

“I cannot assess the impact on prices, as that depends on business practices, but naturally, protecting workers can increase costs,” Putk said.

The main amendment to the Labour Code received 85 votes in favour, with none opposed and eight abstentions. The proposals will now be reviewed by parliamentary committees before further votes in the full Seimas. The legislation has already been approved by the government and would require the president’s signature to take effect.

The measures implement an EU directive intended to improve the employment status of people working through digital platforms, strengthen oversight of algorithmic management and increase transparency.

Under the proposed rules, employment status would be determined primarily by the actual working relationship rather than the wording of a contract. Indicators of an employment relationship could include subordination and a lack of freedom to choose working hours, provide similar services to other clients, or accept or reject assignments without negative consequences.

Platforms would also face restrictions on collecting sensitive or private information unrelated to work, such as data about workers’ emotional states or conversations outside working hours. Workers would have the right to request explanations of automated decisions affecting them.

The Social Security and Labour Ministry estimates that about 28 million people work through digital platforms across the EU, with 5.5 million potentially misclassified.

In Lithuania, about 141,000 people worked through platforms, including around 33,000 ride-hailing drivers and couriers, according to Vilnius University data for 2024. The number of platform workers is projected to rise to 157,000 by 2028.

There are some 140 service platforms operating in the country, the most popular among them being Wolt, Bolt Food, Bolt, Uber, Ziticity, LastMile, Barbora, Trobos.

The ministry says platform workers in Lithuania are generally classified as self-employed and therefore lack access to certain benefits, including unemployment and workplace accident compensation.

The changes are scheduled to take effect December 2, with fines related to reclassification of employment relationships due to begin a year later, on December 2, 2027.

Implementation would require about €1.1 million in additional funding for the State Labour Inspectorate to cover staffing needs.