The Committee on Employment and Social Affairs has called on the Commission to introduce new legislation regulating the use of algorithmic technology – including AI – in the workplace. MEPs on Tuesday agreed on a series of recommendations that would cement the safe, fair and transparent use of, for example, automated monitoring or decision-making systems presently used to bolster steps or improvements in the workplace.

The key is to ensure that algorithmic technologies remain overseen by humans even as they help tweak or optimise work efficiency. Rapporteur Andrzej Buła (EPP/POL) opened the discussion before the committee held its vote on the committee’s own draft initiative.

“This report is an important, balanced proposal for rules on the use of algorithmic management in the workplace in a relationship between an employer and an employee. Should it be adopted we will have a win-win situation. Both sides of industry can consider themselves winners. Employers would have the full right to choose the systems they use: no reporting or administrative burdens would be imposed. Social partners would be consulted to help improve workers’ knowledge and skills. Employees would have the right to be informed, and no one would be fired by algorithms. Employees’ personal data would be protected. A strong Europe is one that combines competitiveness and development with high social standards. This is my understanding of the ‘European’ way of life.”

The request for a legislative initiative was adopted by 41 votes in favour, six against and four abstentions.

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Human oversight essential

Under the proposed framework, all decisions taken or assisted by algorithmic management systems would require human supervision. MEPs insist that workers must be able to request explanations for such decisions, and that final determinations concerning recruitment, dismissal, contract renewal, pay changes or disciplinary action must always be made by a human being.

Parliament’s Employment Committee stresses that workers should be fully informed about how algorithmic systems influence their working conditions. This includes clarity on when and how these tools are used in decision-making, what kinds of data they collect or process, and how human oversight is ensured. Employees should also receive appropriate training on how to interact with these systems and be consulted before algorithmic tools are used in areas such as pay, performance evaluation, task allocation or working time management.

MEPs underline that the deployment of such technologies must safeguard workers’ wellbeing and must not endanger their physical or mental health.

Protection of personal data

To ensure strong privacy protections, the committee proposes that the new rules explicitly ban the processing of certain types of sensitive data. This includes information about a worker’s emotional, psychological or neurological state, private communications or off-duty activities. It would also prohibit real-time geolocation tracking outside working hours and the use of data concerning trade-union membership, freedom of association or collective-bargaining activities.

Existing EU legislation already covers aspects of artificial intelligence and data protection, most notably through the AI Act and the General Data Protection Regulation (GDPR). In addition, specific provisions on algorithmic management are included in the Platform Work Directive, which regulates the use of AI-driven systems in the platform economy. The new initiative seeks to extend similar principles to all workplaces across the European Union.

The European Parliament as a whole will vote on the initiative during its December plenary session. Once adopted, the European Commission will have three months to respond — either by presenting its own legislative proposal or by explaining why it does not intend to act on Parliament’s request.