As 2025 draws to a close, the European Union has taken significant steps toward shaping the future AI in the workplace. They reflect a growing emphasis on balancing innovation with fundamental rights, transparency, and accountability. For (global) employers and HR professionals, understanding these changes is critical, not only for compliance but also for fostering trust and fairness in any AI-driven process, being it during recruitment or during the working relationship.
Below, we highlight three initiatives that emerged in the last weeks and explain why they matter for businesses operating in the EU.
Launch of the AI Act Whistleblower Tool
In November 2025, the EU AI Office introduced a dedicated AI Act Whistleblower Tool, enabling individuals to report breaches of the EU AI Act in the workplace. Employees, contractors, and even external stakeholders can submit concerns anonymously through a secure platform.
For employers, the tool represents both a compliance challenge and an opportunity. On one hand, it increases scrutiny of AI practices, making transparency and ethical use of AI systems more critical than ever. On the other, it is an external reporting tool that may increase legal or reputational risks for them. Therefore, in line with the EU Whistleblowing Directive and best practices, employers should encourage the use of internal reporting channels for potential EU AI Act violations, in order to address such issues early and to avoid risks.
European Parliament’s (EP) proposal for a legislative initiative on AI in the workplace
On 11 November, the EP advanced a call for the European Commission to launch a legislative initiative aimed at regulating the use of AI in the workplace. This initiative seeks to ensure that AI tools used in recruitment, performance evaluation, and workforce management respect core principles of fairness and privacy. Three key aspects stand out:
- Human oversight: In line with the AI Act, and the Platform Workers Directive, EP’s proposal also sets out that employers must guarantee that AI decision-making should be monitored. Human monitoring is required to prevent automated decisions from leading to discriminatory or unjust outcomes. This means that while AI can assist in decision-making, ultimate accountability remains with human managers.
- Data protection compliance: EP’s proposal reinforces GDPR obligations (also enshrined in the AI Act), emphasising that AI systems must process personal data lawfully, transparently, and with clear limitations. Employers should review how AI tools collect and analyse employee data to avoid breaches and maintain trust.
- Employee information requirements: According to the proposal, employees must be informed when AI systems are used in processes that affect them, such as hiring or performance reviews. This includes explaining the purpose, logic, and potential impact of the AI tool, empowering employees to understand and challenge decisions where necessary.
This proposal signals a clear regulatory trend: AI in the workplace (including when it concerns self-employed workers, i.e. platform workers) will not be a black box. Therefore, Employers should start preparing for potential stricter disclosure and governance requirements.
EU Equality Jobs Roadmap and consultation for an EU Equality Jobs Act
Running in parallel with the EP proposal, on 4 December, the European Commission published the Quality Jobs Roadmap (Roadmap), outlining a strategic vision for fair working conditions. A legislative proposal, for a Quality Jobs Act (Act), is expected by the end of 2026, for which a first-stage consultation (see consultation document here) was opened on 4 December and will be running until 29 January 2026, seeking views on:
1) possible direction of EU action, alongside non-legislative initiatives; and
2) various employment areas, including human oversight of AI systems and AI at work, limits on surveillance and discrimination and more.
2026 is expected to be a key year in this regard, as a second stage consultation is expected to be launched, and a legislative proposal is planned to be published by the end of 2026.
Looking ahead: What do these mean for 2026?
The end of 2025 has brought a clear message: AI in the workplace is firmly on the EU regulatory agenda, and the above developments set the tone for what promises to be an active year ahead. If not done so already, employers should:
- Audit existing AI tools/systems for compliance with emerging standards.
- Enhance transparency and employee communication.
- Implement bias testing and monitoring protocols.
- Encourage internal processes for whistleblowing and ethical oversight.
It is worth noting that the legislative initiatives mentioned under point 1 and 2 are still in their very early days, as a draft legislation has not been proposed yet. However, employers should keep an eye on them, in order to be able to take any relevant action on time.
We look forward to supporting you further in 2026.