Changes from report parliamentary committee draft to plenary report

ANNEX TO THE MOTION FOR A RESOLUTION: RECOMMENDATIONS AS TO THE CONTENT OF THE PROPOSAL REQUESTED

Change 13

RemovedTEXT OF THE LEGISLATIVE PROPOSAL REQUESTED

AddedThe European Parliament considers that, if the Commission, after conducting an impact assessment, complemented by a Competitiveness and SME Test, submits a legislative proposal on algorithmic management in the workplace, the following recommendations should be incorporated:

RemovedProposal for a

AddedRecommendation 1

RemovedDIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

Removedon algorithmic management in the workplace

RemovedTHE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

RemovedHaving regard to the Treaty on the Functioning of the European Union, and in particular Article 153(2), point (b), in conjunction with Article 153 (1), point (b), and Article 16(2) thereof,

RemovedHaving regard to the proposal from the European Commission,

RemovedAfter transmission of the draft legislative act to the national parliaments,

RemovedHaving regard to the opinion of the European Economic and Social Committee,

RemovedHaving regard to the opinion of the Committee of the Regions,

RemovedActing in accordance with the ordinary legislative procedure,

RemovedWhereas:

Removed(1) The unprecedented scale, depth and rapid pace of the transformation, and its profound impact on the work patterns present cross cutting challenges that transcend national borders and need to be addressed at Union level.

Removed(2) Algorithmic management systems should be understood as tools and enablers that serve both employers and workers by improving efficiency, facilitating decision-making, and supporting better work organisation. When used responsibly and transparently, such systems can contribute to more balanced and informed workplace practices. Their careful deployment under a common set of Union rules should unlock their potential ensuring implementation in a manner that upholds fundamental rights, fosters trust and promotes the overall well-being of workers.

Removed(3) Lack of clear comprehension of the functioning of algorithmic management systems impedes the workers from effectively asserting their data rights, which further reinforces the imbalance of power in favour of the employer. There is evidence that involving workers and their representatives in consultations improves both performance and working conditions.

Removed(4) The AI Act represents a significant step forward in regulating high-risk artificial intelligence systems, it remains nevertheless insufficient to fully address the challenges posed by algorithmic management in the workplace. Although it classifies work-related AI tools as high-risk, its primary focus is on market placement, product safety, and compliance obligations for providers and users, and not on the employer– worker relationship. Moreover, the AI Act does not apply to algorithmic management systems that are not AI-based, leaving a regulatory gap in addressing the broader impact of digital management tools on workers’ rights, working conditions, and social dialogue.

Removed(5) Regulation (EU) 2016/679 of the European Parliament and of the Council [General Data Protection Regulation] dates back to 2016 and was not specifically designed to address the particular challenges of data protection in the workplace, and since then technological and workplace realities have evolved significantly, necessitating an update and reinforcement of data protection provisions applicable to employment, as it currently leaves room for interpretation. Article 15(1), point (h), of Regulation (EU) 2016/679, which lays down the transparency requirements for and the limitations of data processing, only provides for clear prohibitions in the case of fully automated decision-making processes, which are therefore not sufficient in most employment-related contexts. What is more, Regulation (EU) 2016/679 adopts individualistic approach and does not grant collective rights. Since the entry into force of Regulation (EU) 2016/679, Article 88 on the protection of workers' personal data has been poorly implemented and remains largely ineffective in nearly all Member States .

Removed(6) Directive 2002/14/EC of the European Parliament and of the Council [Information and Consultation Directive] provides only general information on the collective right to consultation while Directive (EU) 2019/1152 of the European Parliament and of the Council of 20 June 2019 [Directive on Transparent and Predictable Working Conditions] does not explicitly mention the right to information on algorithmic management systems and is not specific enough to address the complexity of the algorithmic management system. Those directives do not guarantee workers’ right to information on functioning, logic, or impact of algorithmic systems on their work organisation and evaluation and fail to involve workers.

Removed(7) There are roughly 20 million solo self-employed persons in the Union, accounting for almost 10% of workforce. They lack access to full social protection but are equally subject to automated decision-making, monitoring, and performance evaluation. To ensure fairness, and prevent exploitation, in all forms of modern work, the provisions of this directive should apply to solo self-employed persons.

Removed(8) This Directive should establish common Union minimum standards for the use of algorithmic management in the workplace, ensuring increased transparency and legal certainty across Member States. By creating a level playing field for all companies, including small and medium-sized enterprises, the directive should aim to support a fair and responsible uptake of algorithmic management tools. It will furthermore enhance clarity and predictability for workers and solo self-employed persons, enriching their working experience, fostering trust in digital technologies, and helping to mitigate the potential risks associated with algorithmic decision-making in employment contexts,

RemovedHAVE ADOPTED THIS DIRECTIVE:

RemovedArticle 1

Subject matter and scope

Change 14

Removed1. This Directive lays down minimum requirements for the transparent use of algorithmic management in the workplace.

AddedThe aim of the proposal should be to improve working conditions and to promote the transparent, fair, accountable and safe deployment and use of automated monitoring and decision-making systems used to take or to support decisions at the workplace, ensuring human oversight, the protection of workers’ fundamental rights, and the protection of workers in relation to the processing of their personal data.

Change 15

Changed2.The Thisproposal Directiveshould appliesapply to every worker and employer in the UnionUnion. asWorkers wellin asa solocontractual self-employedrelationship personswith andan intermediary should enjoy the relevantsame procurerslevel of services.protection as workers with a direct contractual relationship with their employer.

Change 16

RemovedArticle 2

AddedThe proposal should respect the principle of proportionality and should ensure that the administrative and compliance burden imposed is appropriate to the size of the employer and the resources at its disposal, the nature of the technologies used, and the level of the risk involved, particularly with regard to micro, small and medium-sized enterprises.

AddedRecommendation 2

Definitions

Change 17

RemovedFor the purposes of the Directive, the following definitions apply:

Added(Ex AM E (Or. The proposal should provide for the following definition:

Removed1. ‘algorithmic management’ means the use of automated systems to monitor, supervise, evaluate, or make or support decisions—by electronic means—regarding the work performance and working conditions of workers including systems that process personal data to oversee activities within the work environment, as well as systems that take or support decisions significantly affecting workers or solo self-employed persons, such as the organisation of work assignments, earnings, safety and health, working time, access to training, promotion, and contractual status;

Added‘algorithmic management’ should be defined as automated monitoring systems and automated decision-making systems, in accordance with the Platform Work Directive..

Removed2. ‘worker’ means a person who is deemed to have an employment contract or an employment relationship as defined by the Union and national law, including collective agreements and national practice;

AddedThe proposal should also provide definitions of: ‘worker’, ‘employer’, ‘worker’s representatives’ and ‘workplace’ in accordance with Union labour law including the case law of the Court of Justice, to avoid discrepancies.

Removed3. ‘solo self-employed person’ means a person who has no employment contract or employment relationship, and who relies primarily on his or her own personal labour for the provision of the services concerned;

AddedRecommendation 3

Removed4. ‘employer’ means the natural or legal person who is party to employment contracts or employment relationships with workers, in accordance with national law and practice;

Removed5. ‘procurer of services’ means a natural or legal person who is party to a contractual agreement with a solo self-employed person for the provision of specific services or tasks.

RemovedArticle 3

Transparency and right to information

Change 18

Changed1. MemberThe Statesproposal shallshould ensure that employers and procurer of services provide, respectively,provide theirthe workers affected and the soloworkers’ self-employedrepresentatives personsconcerned with whom they haveinformation, ain contract,writing and their representatives, within information,an inaccessible writing,format, concerning the use or planned use of systems for algorithmic management inat the workplace.

Change 19

Removed2. The information referred to in paragraph 1 shall include:

AddedSuch information should be provided in accordance with the General Data Protection Regulation and should include:

Change 20

Changed(a) a clear statement that algorithmic management systems are in use or intend to be introduced,introduced to carry out automated or semi-automated decision-making, including a general description of the purpose and the decisions taken or supported by those systems, their purpose;functioning and the workers and processes affected by them, the nature of such information being proportional and limited to what is necessary for the workers to carry out their work, to understand how the algorithmic systems influence decisions affecting them, and to exercise their rights;

Change 21

Removed(b) the categories of data collected and processed by such systems in relation to the workers or solo self-employed persons, including their behaviour and performance-related data, as well as the types of actions or activities monitored;

Added(b) the impact of such systems on the workers’ working conditions and employment status;

Change 22

Changed(c) a clearthe indicationcategories of whether the data collected isor usedotherwise toprocessed carryby outsuch automatedsystems decision-making,in and,relation whereto applicable,the aworkers, descriptionthe purpose of the natureprocessing of the data and scopethe details of suchthe decisions.persons to whom the data is transferred;

Change 23

Removed3. The information referred to in paragraph 1 shall be provided at the following times:

Added(d) the human oversight mechanisms;

Removed(a) on or before the first working day to workers and on the first day of the contract to the solo self-employed persons;

Added(e) training and support measures for the workers directly affected.

Change 24

Changed(b)The beforeinformation should be provided at the latest on the first working day of the affected workers, prior to the introduction of changes substantially affecting their working conditions, and at any time upon the organisationrequest of work orthe monitoringworkers andor evaluatingthe workworkers’ performance;representatives.

Change 25

Removed(c) at any time upon their request.

AddedThe information should be provided in a clear, transparent and easily understandable and accessible manner, using plain language, which is adapted to the level of digital literacy reasonably expected of the workers, and should be accessible to persons with disabilities. The competent authorities and the workers’ representatives should have the right to ask for additional clarifications and details regarding any of the information provided.

Removed4. The information referred to in paragraph 1 shall be provided in a clear and easily understandable manner. Member States shall ensure that employers and procurer of services provide the information in a manner that is adapted to the level of digital literacy reasonably expected of the workers or solo self-employed persons to understand, and that it avoids the use of unnecessarily technical or complex language.