Labor Law: EU Parliamentarians Against Dismissal by AI

EU parliamentarians are pushing for legislation to curb the use of algorithmic decision-making systems and AI in companies. The European Parliament's Committee on Employment and Social Affairs has issued a series of recommendations with a clear majority of 41 votes to 6, with 4 abstentions. The goal is to ensure the transparent, fair, and safe application of automated monitoring and decision-support tools in the workplace.

While parliamentarians emphasize that algorithms can optimize processes, they demand that this technology be under human supervision. The core issue is to protect the fundamental rights and data privacy of employees.

One of the pillars of the proposed rules is human control. Employees should also have the right to an explanation of algorithmically supported decisions. In particular, the start and end of employment, contract extensions, salary adjustments, or disciplinary measures must always be decided by humans.

Furthermore, the committee places great importance on transparency and the right to information: employees must be informed about how these systems affect their working conditions, when they are used for decision-making, what kind of data they collect, and how human oversight is ensured. Employees should also have access to training on how to use this technology and be consulted on machine-assisted decisions regarding remuneration, performance reviews, task allocation, or working hours.

EU Commission to Present Draft Law

Another point concerns the protection of employees' data and well-being. The proposed regulations should ensure that the use of algorithmic management does not endanger the mental and physical health, as well as the safety, of employees.

To protect privacy, the representatives demand a ban on processing certain sensitive data. This includes information about employees' emotional, psychological, or neurological state, private communications, data about leisure activities, and real-time location tracking outside working hours. Trade union freedom and collective bargaining should also remain unaffected.

The rapporteur Andrzej Buła from the conservative EPP group considers the proposal balanced, as it benefits both sides of the social partnership. Employers remain free to choose their systems and do not have to fear new administrative hurdles. Employees gain new information rights and better data protection. This is an expression of a "European way of life" that combines competitiveness with high social standards.

The European Parliament will vote on the initiative in December. Subsequently, the EU Commission will have three months to respond to the appeal. Existing laws such as the AI Act, the General Data Protection Regulation (GDPR), and the Platform Work Directive already form a general framework, according to a study for the parliamentarians, which must be supplemented by targeted regulations for the use of AI in the workplace.

(ds)