The "Algorithmic Boss" is already living with us
Artificial intelligence (AI) is already acting as a veritable "algorithmic boss" in labour management, participating in hiring, performance evaluation and even dismissal processes. This new scenario, driven by automation and data analytics, forces labour law to adapt to ensure transparency, equality and accountability in labour relations.
The Rider Act, the recent Supreme Court ruling on the social bonus for electricity and the European Regulation on Artificial Intelligence (2024/1689) mark a turning point: human supervision and traceability of automated decisions are no longer optional, but legal and ethical requirements.
Algorithms have gone from being simple efficiency tools to become "invisible managers" that directly influence the professional lives of workers. As the Rider Act (Article 64.4.d ET) reminds us, companies are obliged to inform workers' representatives about the parameters and rules of algorithms that affect access, maintenance or conditions of employment. This transparency prevents decisions taken by automatic systems from becoming unchallengeable black boxes.
The Supreme Court, in its ruling of 11 September 2025, has reinforced this trend by requiring the State to open up the algorithm that manages the electricity social bonus, underlining that neither the Administration nor private companies can hide behind opaque systems when fundamental rights are at stake.
In this new context, the legal representation of workers acquires a central role: it will be able to request information, promote audits and verify that automated decisions respect the principles of proportionality and equality. Algorithmic governance thus becomes a structural element of labour compliance.
The European AI Regulation considers systems applied to labour management, recruitment or performance evaluation to be high risk. Companies using them will have to comply with reinforced obligations of transparency, human supervision, impact assessment, technical documentation and public registration. In addition, the text prohibits invasive practices, such as systems that attempt to infer emotions at work, protecting employees' dignity and privacy.
Organisations will have to develop internal policies for the responsible use of AI, establish technical and legal audits and ensure effective consultation and control channels. It is not just a matter of complying with the GDPR, but of assuming corporate accountability that balances innovation and labour rights.
In short, AI does not eliminate labour law: it challenges it and forces it to reinvent itself. The "algorithmic boss" is already here, and the legal response lies in transparency, human control and responsible governance. Anticipating this through solid compliance roadmaps will make it possible to reduce legal and reputational risks, making technological progress compatible with the protection of workers.
Read the full article written by Raúl Rojas, partner in the labour area, and Carlos Rivadulla, counsel at TMT here.
