MEPs call for new rules on the use of algorithmic management at work

Workers should not be hired or fired based on a decision taken only by an algorithm

They should have the right to information on what type of data is collected

The rules should cover algorithmic tools, including certain artificial intelligence (AI) tools

The Committee on Employment and Social Affairs is calling on the Commission to introduce a law to regulate the use of algorithmic technologies, including AI, within European workplaces.

Employment and Social Affairs MEPs have agreed on a series of recommendations for a new EU bill to ensure the transparent, fair, and safe use of automated monitoring and decision-making systems used to take or support decisions in the workplace. While stressing that the use of algorithmic management (AM) systems can provide opportunities for work optimisation, they want these technologies to be overseen by humans, and emphasise the importance of transparency and the protection of fundamental rights and personal data.

The request for a legislative initiative was adopted by 41 votes in favour and 6 votes against, with 4 abstentions.

Humans in control

There must be human oversight for all decisions taken or supported by AM systems under the new law, according to MEPs. Workers should be able to request explanations on decisions taken or supported by algorithmic management. Final decisions on the initiation or termination of employment, the renewal or non-renewal of a contract, changes in remuneration, or disciplinary action must be taken by a human.

Transparency and right to information

Workers should be informed, MEPs recommend, about how these systems impact on working conditions, when they are used to take decisions, what type of data they collect or process, and how human oversight is ensured. Workers should also have access to training on how to deal with these systems and should be consulted on decisions on remuneration, evaluation, task allocation or working time taken with the support of AM systems.

The use of AM must respect workers’ wellbeing and must not put their safety or physical or mental health at risk, MEPs add.

Protection of workers’ data

To protect workers’ privacy and data, the new rules that MEPs are asking for would prohibit the processing of data relating to workers’ emotional, psychological or neurological states, private communications, data of workers while off-duty, real-time geolocation tracking outside working hours, and the use of data relating to freedom of association and collective bargaining.

Quote

Rapporteur Andrzej Buła (EPP, PL) said: “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. 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'."

Next steps

Parliament will vote on this legislative initiative during its December plenary session. The Commission will then have three months to reply, by either informing Parliament on the steps it plans to take or by giving reasons for any refusal to propose a legislative initiative along the lines of Parliament’s request.

Background

There is already legislation on artificial intelligence and data protection at EU level, for instance the AI Act and the General Data Protection Regulation. Rules focusing more specifically on the use of artificial intelligence at work are laid down in the Platform Work Directive.