European Parliament's own initiative report on AI management in the workplace

On 26 June 2025, MEP Burla (EPP/Poland) issued its own initiative report on “Recommendations to the Commission on digitalisation, artificial intelligence and algorithmic management in the workplace – shaping the future of work” (2025/2080(INL).

Algorithmic management (AM) systems are increasingly deployed to assist employers to supervise, evaluate and allocate work, reshaping how decisions are made across sectors. While these technologies offer opportunities to improve efficiency, productivity and working conditions, they also introduce new risks and challenges, particularly concerning transparency, accountability, health and safety, and workers' fundamental rights.

The main key take aways are as follows:

Scope – Art.1

• The Directive lays down minimum requirements for the transparent use of algorithmic management in the workplace
• This Directive applies to every worker and employer in the Union as well as solo selfemployed persons and the relevant procurers of services.

Transparency and right to information – Art 3

• Workers’ rights and freedoms are at risk. Human oversight is needed (recital A)
• Automated decision-making systems shall not be used to take decisions affecting workers without meaningful human oversight.

Consultation – Art 4

Member States shall ensure that the deployment of new systems of algorithmic management, or such updates to existing systems, which directly affect workers' remuneration, working arrangements, or working time, are deemed to be decisions likely to lead to substantial changes in work organisation or in contractual relations.

Prohibited practices – Art 5

Member States shall ensure that employers and procurer of services are prohibited from processing personal data concerning: the emotional or psychological state of workers or solo self-employed persons; private conversations, amongst others.

Occupational health and safety – Art 7

Obligation to perform an OSH risk assessment (in line with article 12 Platform Work Directive), which duplicates the employers' obligation to perform an OSH risk assessment in line with the 1989 OSH Framework Directive.

Overall, the report calls for a new EU Directive on algorithmic management, establishing transparency, oversight responsibility, and simplifying compliance, especially for SMEs. 

Impact in the sector

Algorithmic management will probably affect sectors such as metal industry or platform workers. But the hospitality sector should remain vigilant to make sure the outcome will not impact the sector.

Next steps:

• The report to be voted at the European Parliament
• The European Commission must reply to the report

For additional information:

• EP draft report