Artificial Intelligence (AI) has heavily infiltrated all aspects of citizens’ daily lives, influencing how they work, communicate, and make decisions. Algorithms are now an integral part of modern life, especially in the job market, where AI shapes roles, skills, and work practices, accelerating pace while simultaneously raising questions about employment security and personal data protection. This makes the adoption of strong safeguards in the use of AI imperative.
Moving in this direction, the European Parliament voted on Wednesday, 17 December, to adopt its legislative report on AI in the workplace, calling on the European Commission to regulate the use of algorithmic management across the EU. The report passed with 451 votes in favour, 45 against, and 153 abstentions. In short, MEPs made it clear that hiring should not rely solely on decisions made by an algorithm, employees must have the right to be informed about the type of data being collected, and they demanded a ban on processing data related to emotional status, private conversations, and data outside working hours.
MEPs demand human oversight and transparency
In the report, MEPs submitted a series of recommendations for new European legislation to ensure the transparent, fair, and safe use of automated monitoring and decision-making systems in the workplace. While they acknowledge that algorithmic management systems can offer opportunities for optimising work, they seek to ensure human oversight, protect workers’ fundamental rights, and safeguard their personal data.
They prioritise a human-centric adoption of the technology, stressing that there must be human supervision of all decisions made or supported by algorithmic systems. Employees must have the right to request explanations for decisions made or supported by algorithmic management, and if they believe their rights have been violated due to a decision taken via such a system, they must have the right to review. Simultaneously, the relevant system should be subject to modification or termination of its use in such cases. MEPs insist that decisions regarding the start or termination of employment, renewal or non-renewal of a contract, changes in remuneration, or disciplinary measures must always be taken by a human and subject to human control.
Furthermore, they recommend that employees be informed about how these systems affect working conditions when used for automated decision-making, the type of data they collect or process, and how human oversight is ensured. Employees should be consulted when algorithmic management systems are used to make decisions affecting pay, evaluation, task allocation, or working time, and the use of these systems must respect the workers’ right to well-being and not endanger their safety or their physical or mental health.
Protecting privacy and banning sensitive data processing
To protect employees’ privacy and data, the rules proposed by the MEPs would prohibit the processing of data related to their emotional, psychological, or neurological state, their private communications, geolocation outside working hours, the use of their data outside of service, and the use of data related to the freedom of association and collective bargaining.
CEOs share concerns over ethics and governance
Concerns are not limited to the Parliament. According to a previous Phileleftheros report, a 2025 KPMG survey based on over 1,300 CEOs globally indicated that business leaders are strategically concentrating their investments in AI, talent, and bolstering resilience against risks to support future growth.71% of CEOs stated that AI is a top investment priority for 2026, while 69% planned to invest 10% to 20% of their budget in artificial intelligence over the next 12 months.
However, despite this investment focus, CEOs expressed concerns regarding ethical implications (59%), data sufficiency (52%), and a lack of regulatory framework (50%), highlighting the shared belief that a strong governance framework is crucial for the sustainable success of AI. While there are fears of job losses due to AI, 61% of CEOs report actively recruiting new talent with AI and technology skills, 70% are concerned about competition for AI talent, and 77% recognise workforce upskilling as a major challenge.
Next steps
Based on these developments, the European Parliament is attempting to reinforce workers’ rights, with emphasis on digital security. The European Commission is now called upon to respond to the Parliament’s request within three months, either by submitting a proposal with the measures it intends to take or by justifying any refusal. The issue is currently under review, while relevant regulatory frameworks for artificial intelligence and personal data protection, such as the AI Act and the General Data Protection Regulation (GDPR), are already in force at the EU level.
Source – https://in-cyprus.philenews.com/international/eu-parliament-ai-workplace-regulation-human-rights/