EU lawmakers want to limit the use of ‘algorithmic management’ systems at work

MEPs are calling on the European Commission to establish more robust rules on the use of algorithms in recruitment and staff management amidst concerns over privacy and discrimination.

According to recent EU research, 42% of EU workers are currently subject to algorithmic management in the workplace, a figure expected to rise to 55.5% within the next five years.

There's already legislation on artificial intelligence and data protection at EU level, including the EU AI Act and GDPR, while rules focusing more specifically on the use of AI at work are laid out in the Platform Work Directive.

However, the EU lawmakers believe that more specific legislation is required. It has now proposed a series of recommendations aimed at ensuring that the use of automated monitoring and decision-making systems in the workplace is transparent, fair, and safe.

The main thrust of the proposals is that there must be human oversight of all decisions taken or supported by algorithmic management systems.

Workers should have the right to request explanations of any decisions taken or supported by such systems - and, if a worker believes his or her rights to have been infringed, they should have the right to ask for a review.

If successful, the system in question could be modified or discontinued.

Decisions on the offer or termination of employment, the renewal or non-renewal of a contract, changes in pay, or disciplinary action should always be taken by a human and be subject to human review.

"This topic affects both employers and 200 million workers in the EU. A human-centered approach is key, and the rights, safety, and dignity of employers and employees must be strictly respected," said MEP Andrzej Buła.

"This sends a strong signal: Europe can combine competitiveness with social responsibility. It can support innovative enterprises without sacrificing high standards and employee protection."

Cracking down on ‘algorithmic management’

A key focus of the crackdown centers on the fact that workers should be informed about how algorithmic management systems impact working conditions, when they're used to take automated decisions, what type of data they collect or process, and how human oversight is ensured.

MEPs believe workers should be consulted when these systems are used to make decisions affecting pay, evaluation, task allocation or working time.

Similarly, the use of these systems should respect wellbeing and not put workers' safety or physical or mental health at risk.

To protect workers’ privacy and data, the proposed rules would ban the processing of data relating to the emotional, psychological or neurological states of employees, as well as their private communications or geolocation outside working hours.

Elsewhere, the guidelines aim to limit the use of employee data while off-duty, as well as the use of data relating to freedom of association and collective bargaining.

There were 451 votes in favour of the recommendations and 45 against, with 153 abstentions. The European Commission now has three months to respond, by either informing Parliament on the steps it plans to take, or by giving reasons for a refusal.

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