Members of the European Parliament have urged the European Commission to prepare legislation regulating the use of algorithmic management (AM) in companies. They stress that humans—not algorithms—should have the decisive say in key employment matters, including decisions on renewing or terminating employment contracts and changes to pay.
In December 2025, the European Parliament adopted a report authored by Polish MEP Andrzej Buła on digitalisation, artificial intelligence, and algorithmic management in the workplace. The report calls for new safeguards against the unchecked use of algorithmic systems at work and responds to rapid changes across Europe’s labour market. According to a December OECD survey on corporate adoption of algorithmic management tools, the average uptake across European countries surveyed—France, Germany, Italy and Spain—reached 79%.
“Algorithmic management introduces mechanisms into the workplace related to monitoring, control, and the creation of situations for which employees are often unprepared,”
Buła told Newseria.
“In this report, we wanted to strike a balance between the employer’s crucial role in running a business—competing in the market and improving efficiency—and the social dimension, treating employees as partners in the use of modern technologies.”
He added that the report’s 11 recommendations aim to clarify employer–employee relations in an environment where algorithms are present, insisting that such systems remain under human supervision—while avoiding additional sanctions or reporting burdens for companies and preserving entrepreneurs’ freedom to conduct business.
Human Oversight as a Core Principle
The report’s central recommendation is clear: no significant employment-related decisions should be made by algorithms without human oversight. MEPs emphasize employees’ right to request explanations for decisions made or supported by algorithmic management. If workers determine that their rights have been violated, the relevant AM system could be modified—or even withdrawn.
“We want every employee in a workplace that adopts advanced technological tools to be immediately trained and informed,”
Buła said,
“with funding available—especially for small and medium-sized enterprises.”
MEPs also recommend that employees receive clear information about how AM systems affect working conditions, particularly when used for automated decision-making. This should include details on what data are collected and processed and how human oversight is exercised. Workers should be able to participate in consultations when AM systems influence pay, performance assessments, task allocation, or working time. The use of such systems must account for employee well-being and must not endanger physical or mental health.
Balancing Innovation and Social Responsibility
“We addressed this report and its recommendations to 32 million companies in Europe and 200 million EU citizens working in the single labour market,”
Buła explained.
“Our role in the European Parliament is to anticipate challenges and ensure that new technologies remain a major opportunity—not a threat—by bringing everyone into the process.”
The document acknowledges that algorithmic management can boost efficiency, reduce costs, improve work organisation, and support innovative business models.
Buła underlined that the report avoids burdening entrepreneurs with extra obligations:
“I ensured that businesses are not harassed or forced into additional reporting. The entrepreneur bears full responsibility for running the company and its financial results. While some on the left argue that trade unions should decide many aspects of company life, I believe the entrepreneur comes first—paying taxes, sustaining families, and funding wages.”
At the same time, he stressed that businesses cannot thrive without a well-prepared workforce. Hence the emphasis on training, transparency, information rights, and human oversight of technological systems.
Existing EU Frameworks and Next Steps
At EU level, several frameworks already address AI and data protection, including the AI Act and GDPR, while workplace use of AI features in the directive on platform work. Buła noted that these rules emphasise safe and trustworthy technology, but argued that the “social contract” between employers and employees must evolve alongside technological change.
“Employers gain the right to modern technologies that improve efficiency, and employees gain the right to understand those technologies,”
the rapporteur said.
“With the right solutions, Europe can combine competitiveness with social responsibility.”
Following the Parliament’s adoption of the report, the European Commission has three months to respond to the MEPs’ request.
