EU lawmakers have called for stronger safeguards for workers increasingly managed, monitored or evaluated by algorithms. The report comes as AI-driven systems spread well beyond platform work into traditional sectors such as logistics, manufacturing, finance and healthcare.
MEPs backed a non-legislative report on Wednesday 17 December, urging stronger safeguards for workers increasingly managed, monitored or evaluated by algorithms, as AI-driven systems spread well beyond platform work into traditional sectors such as logistics, manufacturing, finance and healthcare.
Lawmakers warned that while algorithmic tools can boost productivity and efficiency. However, they also pose growing risks to workers’ fundamental rights, privacy and mental health if left unchecked. Parliament research shows that more than four in ten EU workers are already exposed to algorithmic management. A figure expected to rise significantly in the coming years without further EU action
No firing by algorithm
At the core of Parliament’s demands is the principle that humans must remain in control of workplace decisions. MEPs insist that algorithms should never have the final say over recruitment, dismissal, contract renewal, pay changes or disciplinary measures.
Rapporteur MEP Andrzej Buła (EPP/POL) said the report aimed to strike a balance between innovation and protection. “Algorithmic management has great potential to increase efficiency and reduce”, Mr Buła told MEPs during yesterday’s debate on the vote. “But a lack of transparency in the way algorithms function and automatic decisions without real human control can lead to violations of fundamental rights and deterioration of mental or physical health”.
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Lack of transparency in the way algorithms function and automatic decisions without real human control can lead to violations of fundamental rights and deterioration of mental or physical health – MEP Andrzej Buła (EPP/POL)
He stressed that the initiative is not intended to slow down innovation or burden companies with excessive red tape. “Clear and proportionate rules give can build trust in technology and can help it to develop responsibly for companies, he said. “No one should feel helpless in front of systems that no one can clearly explain”.
Transparency and worker rights
Under Parliament’s recommendations, decisions taken or assisted by algorithmic management systems would remain subject to human supervision. The recommendation insists that workers must be informed when such systems are used, what data they process and how they influence decisions affecting working conditions. Employees should also have the right to request explanations and human review of algorithmic decisions.
Lawmakers further stress that workers and trade unions should be consulted before the introduction of algorithmic tools. Particularly, where these systems affect pay, performance evaluation, task allocation or working time management.
The report warns that practices such as continuous digital monitoring, automated performance scoring and algorithmic scheduling can intensify work and increase stress. It underlines that the deployment of such technologies must safeguard workers’ autonomy and not endanger their physical or mental health.
Commission signals openness
Speaking on behalf of the Commission, Executive Vice-President Roxana Mînzatu, used the debate prior to the vote to confirm that algorithmic management is already under review in Brussels. “Algorithmic management can increase efficiency and improve safety at work,” Mînzatu said. “But it also raises concerns, from excessive surveillance and data breaches to discrimination and psychosocial risks.”
“Algorithmic management can increase efficiency and improve safety at work. But it also raises concerns, from excessive surveillance and data breaches to discrimination and psychosocial risks.” – Commission Executive Vice-President Roxana Mînzatu
She pointed to the Commission’s recently adopted Quality Jobs Roadmap. This addresses the impact of digitalisation on working conditions. Besides, notes that algorithmic systems are already partially covered by existing EU laws, including the GDPR and the AI Act.
Broad political backing
However, she acknowledged that gaps may remain. “If gaps remain, new, targeted complementary measures need to be considered,” she said. Also added that any future proposal would be subject to social partner consultations and an impact assessment focusing on competitiveness and SMEs.
Support for the initiative came from across the political spectrum during the vote and the debate. Most groups agree that the rapid spread of algorithmic management requires a coordinated EU response. As Greens MEP Kim van Sparrentak puts it, “In the age of AI, workers should still have the right to know how a decision about them is made.”
The Socialists and Democrats echoed those concerns, focusing on the loss of human oversight. MEP Marc Angel (S&D, LUX) said workers are increasingly overseen by what he described as “invisible algorithms”. “Too often, these systems are black boxes,” he said. Also warned that employees no longer understand “why pressure increases, or opportunities disappear.”
What happens next
By contrast, right-wing groups, including the European Conservatives and Reformists and Patriots for Europe, expressed scepticism about new EU-level rules. While stopping short of rejecting the report outright, they warned that additional requirements could undermine competitiveness, particularly for small and medium-sized companies. They also argued that existing legislation should be better enforced before introducing new measures.
Although non-binding, Parliament’s vote increases political pressure on the Commission to come forward with legislation. According to Parliament’s research service, a new, targeted EU legislative instrument would offer the greatest legal clarity for both workers and employers, compared to relying solely on existing laws.
