Over 42 % of EU workers are currently subject to algorithmic management (AM) in the workplace, a figure expected to rise to 55.5 % within the next five years, according to the European Parliamentary Research Service.

Recognising the growing prevalence and impact of these computer-programmed systems, the Committee on Employment and Social Affairs of the European Parliament has taken a firm stance, calling on the European Commission to introduce legislation to regulate AM, including artificial intelligence, in European workplaces.

MEPs have argued that while AM can optimise work processes, human oversight, transparency, and the protection of fundamental rights must remain central. The request for a legislative initiative was adopted with strong cross-party support with 41 votes in favour, six against, and four abstentions.

Algorithmic management refers to systems that coordinate labour input, monitor performance or support decisions, often affecting hiring, task allocation, scheduling, remuneration and disciplinary measures. While AM can increase productivity, streamline processes, and enforce labour rules such as working time requirements, it is also associated with higher stress, anxiety and burnout, as well as reduced work-life balance and flexibility.

Workers with lower digital skills are disproportionately affected, which highlights the need for upskilling, the report suggests. A study by the European Foundation for the Improvement of Living and Working Conditions suggests, that close to 40% of workers in Malta face an element of algorithmic management.

The EP Committee has proposed that all decisions taken or supported by AM systems must remain under human oversight. Employees should be able to request explanations for decisions and have access to training on interacting with these systems.

Transparency is key: workers should know when AM tools are used, what data is collected, and how oversight is ensured. To protect privacy, MEPs have called for a prohibition of the processing of sensitive data, including emotional, psychological, or neurological states, private communications, off-duty activity, real-time geolocation and information on trade union participation.

Current EU legislation, including the AI Act, the General Data Protection Regulation, and the Platform Work Directive, covers some aspects of AM but leaves gaps. National measures vary: the Netherlands has an algorithm register, Italy obliges employers to declare AM use, and Germany plans to extend protections to solo workers.

The European Parliament is expected to approve this proposal by the end of the year, granting the European Commission three months to decide on the matter.

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