Changes from report parliamentary committee draft to plenary report

The modern workplace is undergoing a profound transformation driven by digitalisation, automation and the rapid advancement of artificial intelligence (AI). 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 fast pace of this transformation often outstrips the capacity of existing legal frameworks to provide adequate safeguards, leaving workers exposed and employers uncertain about their obligations.

The rapporteur believes that the European Union must take proactive steps to navigate this transformation in a way that supports both economic competitiveness and social progress. The deployment of algorithmic management systems in the workplace must be human-centred, respectful of rights and inclusive by design. To that end, the EU needs to ensure that all workers and solo self-employed persons alike, have access to clear information, appropriate training, and meaningful participation in decisions affecting their working lives. At the same time, companies, particularly SMEs, need a stable and harmonised regulatory environment that is simple, transparent, and supportive of innovation and fair competition.

The rapporteur considers that a dedicated framework directive is the most effective legal instrument to address these challenges. While existing instruments such as the AI Act, the General Data Protection Regulation, the Directive on Transparent and Predictable Working Conditions, and the Information and Consultation Directive provide some relevant safeguards, they do not comprehensively address the specific issues posed by algorithmic management in the employer–worker relationship. A directive will allow the EU to close these regulatory gaps by establishing minimum standards that ensure greater legal certainty, foster trust in technology, and promote fairness in the digital transformation of work.

To this end, the rapporteur proposes a directive that sets out clear rules on transparency, consultation and human oversight in the use of algorithmic management systems. It includes provisions that:

 define algorithmic management and establish its scope of application to both workers and solo self-employed persons;

 ensure workers receive timely, clear, and accessible information on how algorithmic systems function and how they affect their work;

 require consultation with worker representatives before the introduction of new systems or substantial updates that affect remuneration, work organisation, or working time;

 ban specific harmful data practices, such as monitoring emotional states or private behaviour;

 mandate that key decisions, such as hiring, termination, and pay changes, remain subject to human review;

 introduce specific health and safety obligations to prevent undue pressure and psychosocial risks;

 assign responsibilities to national labour inspectorates for the oversight of the safe and non-discriminatory use of algorithmic management tools.

The rapporteur emphasises that this proposal for a directive is not intended to stifle innovation or burden businesses with unnecessary bureaucracy. On the contrary, by setting clear, proportionate, and future-proof standards, it will support a fair and effective integration of new technologies in the workplace. It will help companies, including SMEs, adapt confidently to the digital era, promote a level playing field across the internal market, and ensure that workers are equipped, protected, and empowered in the face of ongoing change. In doing so, the directive contributes to a modern, competitive, and socially responsible European labour market.