The European Parliament's Committee on Employment and Social Affairs has put forward a draft report advocating for a new EU Directive to regulate algorithmic management in the workplace. This initiative aims to create a framework for the increasing use of automated systems, including AI, in monitoring, assessing, and making decisions that affect workers and self-employed individuals. The proposed directive addresses a gap in current EU legislation, as a March 2025 Commission study indicated that existing regulations like the GDPR and the AI Act do not fully cover the risks associated with these workplace technologies, particularly regarding specific worker rights in algorithmic management contexts.
Key proposals within the draft report focus on enhancing transparency and worker empowerment. Employers would be required to provide clear, written information to workers about the deployment and function of algorithmic systems, including their purpose, data collection methods, and whether automated decision-making is involved. The directive also calls for mandatory consultation with employees before implementing new or updating existing algorithmic systems. A crucial element is the mandate for human oversight in all algorithmic management systems, ensuring that critical decisions are not solely automated. To further protect workers, the directive proposes prohibiting the processing of sensitive personal data, such as information on emotional states or neuro-surveillance. Workers would gain the right to an explanation for decisions made or influenced by these systems, promoting accountability. The legislative process is ongoing, with a vote scheduled in the Employment Committee in December 2025. If approved by the Parliament's plenary session, the European Commission will be formally requested to present a legislative proposal.