The end of dismissal by algorithm

The end of dismissal by algorithm | Photo: Igor Omilaev

Europe is drawing a clear line between technological efficiency and fundamental labour rights. By December 2026, digital systems across the continent will no longer be allowed to take decisive action over workers’ livelihoods without human intervention. The shift reflects growing concern that automated management, while economically attractive, has outpaced ethical and legal safeguards, leaving millions exposed to opaque decision making.

With platform work and AI driven management now embedded across logistics, transport, retail and professional services, the new rules aim to ensure that innovation develops alongside social fairness and long term sustainability.

Human oversight becomes a legal requirement

At the centre of the reform is a simple but far reaching principle, human judgement must remain decisive. Under the new framework adopted by the European Union, algorithms may assist management but cannot act alone when it comes to dismissals, account deactivations, task allocation, or significant changes in working conditions.

Any such decision must be reviewed and validated by a natural person. This restores a clear right of appeal and guarantees that workers have an identifiable human contact, rather than facing automated outcomes with no explanation or recourse. Legal analysts describe this as a structural safeguard against what has become known as dismissal by algorithm, particularly prevalent in the platform economy.

Limits on surveillance and emotional profiling

The legislation also addresses the rapid expansion of workplace monitoring technologies. From 2026, companies will be prohibited from using AI systems to analyse emotional or psychological states, a practice increasingly enabled by biometric data, facial analysis and behavioural prediction tools.

Restrictions extend to the collection of sensitive biometric information and access to private communications, preventing AI from functioning as a continuous surveillance mechanism. These measures respond to evidence that intrusive monitoring erodes trust, increases stress and can distort performance assessments, particularly among precarious and remote workers.

Transparency as a worker’s right

Another pillar of the reform is mandatory transparency. Employers using automated decision systems will be required to explain, in clear and accessible terms, how those systems function and what criteria influence outcomes. Workers must be able to understand the logic behind decisions that affect their income, workload or employment status.

This obligation marks a shift away from black box management models. According to EU impact assessments, greater transparency is expected to reduce disputes, improve compliance and encourage more responsible system design across the private sector.

A new benchmark for the digital labour market

While the rules apply within Europe, their implications are global. Multinational platforms operating across borders will need to adapt their systems, potentially setting a de facto international standard for ethical AI management. The reform aligns indirectly with the Sustainable Development Goal on decent work, reinforcing the idea that digital progress should enhance, not undermine, human dignity.

As the 2026 deadline approaches, further guidance and national implementation measures are expected. For readers seeking deeper context, ongoing work by European labour agencies, digital rights organisations and academic research networks offers detailed analysis of algorithmic management and its social impact.

Europe’s message is unambiguous. Artificial intelligence may optimise processes, but decisions that shape human lives must remain accountable, explainable, and ultimately human.