In a recent push for enhanced regulatory measures within the European Union, Members of the European Parliament (MEPs) from the Committee on Employment and Social Affairs have proposed new legislation aimed at governing the use of algorithmic management tools in the workplace. This initiative seeks to ensure transparency, fairness, and safety in the application of automated systems that support or make employment decisions.

The proposed rules would mandate human oversight in all employment-related decisions facilitated by algorithmic management systems (AM). This includes decisions on hiring, firing, contract renewals, remuneration changes, and disciplinary actions. The MEPs’ recommendations highlight the potential benefits of these technologies for optimizing work processes but stress the need for these systems to be controlled by humans to protect workers’ fundamental rights and personal data.

The call for legislation follows a vote where the legislative initiative was adopted with significant support, signaling a strong consensus on the need for regulatory measures. The proposed law would also restrict the processing of sensitive personal data, including emotional, psychological, or neurological states, and prohibit real-time geolocation tracking outside working hours.

Rapporteur Andrzej Buła emphasized the balanced nature of the proposal, asserting that it aims to protect employees while not imposing undue burdens on employers. The next steps involve a parliamentary vote in the upcoming December session, after which the European Commission will have three months to respond. This development comes as part of broader efforts to adapt EU laws to the challenges posed by digitalization and artificial intelligence, building on existing frameworks like the AI Act and the General Data Protection Regulation.