Ten questions on the use of algorithms in working life

1. What is algorithmic management?

Algorithmic management refers to the use of digital and AI tools by employers to manage and evaluate employees. It can include, for example, wearable technology, employee tracking, or monitoring the movements of an employee's mouse and keyboard in knowledge work.

2. You have received funding for a Research Council of Finland project Algorithmic Management in Employment focused on the use of algorithms in working life. What is the project about?

The aim of the project is to examine the labour law and data protection restrictions on the use of algorithmic management, to identify possible gaps in legislation, and to make proposals for future legislation.

In an employment relationship, the employer has the right to manage and monitor the work. However, it is unclear whether this right also allows for extensive technical supervision. Algorithmic management is not possible without the processing of personal data. Personal data is protected as a fundamental right, by the EU General Data Protection Regulation and by national law.

3. How is the use of algorithms changing working life?

The use of algorithms strengthens the employer's ability to manage and monitor work. It also helps the employer to fulfil their obligations towards the employee, for example, in terms of monitoring working time and occupational safety and health. In addition, the use of algorithms allows for different flexible forms of work, such as platform and remote work.

However, the use of algorithms has adverse effects as well. Algorithmic management may violate an employee's fundamental rights to privacy and personal data protection. It requires extensive processing of personal data, or the monitoring may extend to the employee's private life. In addition, algorithmic management can be discriminatory. Employees are often unaware of what information is collected about them and how it is used in management and decision-making.

4. How far along are we in algorithmic management in Finland?

There is no precise data on the use of algorithmic management in Finnish workplaces. It is known that algorithmic management is a key part of platform work, for example, and from there it will spread to traditional workplaces. The development and introduction of various technological tools will expand the use of algorithmic management.

5. How should employees respond to the growing role of algorithms in working life?

Employees should be wary of the growing role of algorithms in working life. The use of algorithms further strengthens the employer's ability to manage and monitor work.

6. What should employers bear in mind when increasing the use of algorithms?

When increasing the use of algorithms, employers should at least bear in mind the protection of employees' personal data. When using algorithmic management, the employer must comply with the requirements of the EU General Data Protection Regulation, the Finnish Data Protection Act, and the Act on the Protection of Privacy in Working Life. The recent EU AI Act also restricts the use of certain AI systems in working life.

7. What type of use of algorithms is clearly prohibited in working life?

This question will be explored in more detail in our research project. In Finland, the Act on the Protection of Privacy in Working Life has very much restricted the use of camera surveillance. For example, the use of software that monitors an employee with a camera is only allowed to a very limited extent.

8. What kind of a research group do you have?

The research group includes five researchers in addition to myself. They are Professor of Private Law Mika Viljanen, who has done extensive research on the legal problems related to the use of artificial intelligence; Senior Researcher Merle Erikson, also Professor of Labour Law at the University of Tartu, who has done comparative labour law research and studied the EU labour law more broadly; Project Researchers Henni Parviainen and Sini Mickelsson, who have studied data protection law and the interface between it and labour law; and Project Researcher Laura Immonen, who has studied atypical employment relationships, in particular remote and platform work.

9. How did you become interested in the use of algorithms in working life?

In the past, I have studied platform work, where algorithmic management is used extensively. It affects both the working conditions of employees and their status under labour law, i.e. their classification as employees or entrepreneurs.

I have also looked at remote work, where the employer has limited possibilities to physically monitor and manage the employee and, for example, to meet occupational health and safety obligations. Technological tools would better enable the exercise of these rights and obligations, but at the same time they may violate the privacy of employees.

10. When can we expect the results of the study?

The project will run until autumn 2028, by which time all project results will be complete. However, research results are already being published in national and international scientific journals during the project.

Text: Rosa Lampela
Photo: Esko Keski-Oja
Translation: Saara Yli-Kauhaluoma