AUTOMATED PERFORMANCE MANAGEMENT AND DECISION MAKING IN THE EU LABOR RELATIONS
The digitalization of labour is fundamentally reshaping the employment, transitioning from traditional, human-centric performance management toward decentralized work governed by algorithmic supervision. This shift is characterized by the rise of precarious, data-driven arrangements—such as zero-hour and short-term contracts—that catalyse a significant re-regulation of labour relations. Drawing on OECD (2025) data, this paper analyses the rapid adoption of AI-driven monitoring and evaluation tools across global markets, noting significant impact on managerial autonomy versus worker protection.
While employers favour these technologies for efficiency and productivity gains, the automation of high-stakes decisions—such as performance appraisals and contract terminations—introduces profound psychological risks, including the “robotization” of labour and the erosion of worker dignity. The paper critically examines the exacerbation of historical power asymmetries and the contentious nature of “informed consent” in subordinate employment.
Centrally, the study evaluates the European Union’s legislative response, specifically the Platform Work Directive (EU) 2024/2831 and the AI Act (Regulation 2024/1689). These frameworks introduce critical safeguards, including the rebuttable presumption of employment, “human-in-the-loop” mandates, and the prohibition of invasive biometric and emotion-inference monitoring. By synthesizing these legal developments, the paper argues for human-centric regulatory approach to ensure that technological innovation does not dismantle the fundamental rights and social architecture of the world of work, while in the same promoting and supporting innovation and further digital development.
Keywords: artificial intelligence, automated decisions, GDPR, employment.
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