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We are honoured and happy to announce that we have been appointed by the Council of Europe to conduct and deliver a comprehensive research paper as part of an impactful joint project with the European Commission, in partnership with the Migration Department, titled "Enhancing Structures and Policies for Intercultural Integration in Cyprus".


Our research focused on the critical area of multidisciplinary coordination against human trafficking in Cyprus. We were tasked to explore several key elements, including the establishment of the multidisciplinary coordinating group against human trafficking, its members and their terms of reference, analysis of other forms of inter-ministerial and intragovernmental memoranda of cooperation or understanding, and strategic recommendations to the Deputy Ministry for Migration and International Protection, which has undertaken the role of the national anti-trafficking coordinator, as of June 2024.


The insights and recommendations we provide will contribute to the project's final report, aiming to enhance the sustainability of the results and propose further actions. This research underlines our commitment to supporting the fight against human trafficking, a grave issue that requires urgent and sustained collective strategies and action.


We note that this project follows from the previous "Building structures for intercultural integration in Cyprus" project, where one of our firm’s partners worked on producing guides addressed to refugees, asylum seekers and prospective employers, concerning rights, obligations and inclusion in the labour market.



As a matter of background, this follows a proposal from the European Commission, published on 9 December 2021. Employment and social affairs ministers then agreed on the Council's general approach during their meeting on 12 June 2023. Subsequently, negotiations with the European Parliament started on 11 July 2023 and led to an agreement on 8 February 2024. The Council of the EU formally adopted these new rules on 14 October 2024. After being signed by both the Council and the European Parliament, the directive will enter into force once it is published in the Official Journal of the European Union. Member states will have two years to implement the directive's provisions into their national laws.

 

The directive is intended to improve working conditions for the over 28 million people currently employed by or engaged in digital labour platforms across the EU, such as food delivery and taxi services, with the number of such workers expected to surpass 40 million by the end of 2025. It also aims to increase transparency in the use of algorithms for HR management, ensuring that automated systems are monitored by qualified personnel and allowing workers to challenge automated decisions.

 

Moreover, the directive will assist in accurately determining the employment status of platform workers, clarifying whether they should be classified as self-employed or employees, thus enabling them to claim the labour and social security rights they are entitled to. To achieve this, Member States shall also be required to introduce a legal presumption of employment within their legal frameworks, which will apply when specific indicators of control and direction are present.

 

You can contact us for more information at info@2e-law.com



Writer: 2E Law2E Law

Introduction


The intersection of artificial intelligence (AI) and employment law is becoming increasingly complex, driven by rapid advancements in technology and corresponding regulatory responses. Recent events such as the serious breach involving AI technology at a tech giant and the legislative progression of the European Union’s Artificial Intelligence Act (EU AI Act) highlight the different facets of this dynamic. These instances shed light on how AI impacts both corporate security and regulatory landscapes, reshaping the employment relationship in the process.


Breach of business secrecy using AI


A major incident occurred at a leading technology company where several employees used generative AI tools, specifically ChatGPT, that led to the disclosure of highly sensitive data. This breach not only exposed critical corporate information but also highlighted the potential misuse of AI tools within a company. The incident led the tech giant to ban the use of generative AI tools on company-owned devices, covering computers, tablets and phones, as well as non-company-owned devices running on internal networks. The incident reflects the companies’ urgent need for internal governance of AI usage to prevent data leaks and manage the associated risks that come with powerful AI tools.


This breach has broad implications for employment law as it touches on issues of confidentiality agreements, employee monitoring, and the potential disciplinary actions for misuse of technology. The inappropriate use of AI tools may also give rise to civil liability on the part of the employer for damage caused to third parties by its employees especially if it results in a violation of the rights of others e.g. copyright infringement.


Employers must navigate the delicate balance between protecting their business interests and respecting employee privacy, a challenge that is magnified by the capabilities of modern AI.


The EU AI Act


The EU AI Act which was approved by both the European Parliament and the Council and is soon expected to enter into force creates a legal framework for AI technology throughout the European Union and brings substantial new obligations for both the developers and users of artificial intelligence. It classifies AI systems based on risk levels, imposing more stringent requirements on high-risk applications, including those affecting health, safety, and fundamental rights.


For employers, the EU AI Act necessitates a thorough understanding of how their AI systems are classified and the specific obligations that apply. Compliance involves risk assessments, data governance, cyber security, and human oversight, among other requirements. The Act also emphasizes transparency, demanding clear communication about AI use to employees, customers, and stakeholders, which is critical in maintaining trust and ethical standards in the use of AI.


The act’s phased implementation timeline means that businesses have a transition period to adapt their practices, integrate AI compliance into existing workflows, and ensure their AI technologies comply with the new regulations. This preparation will be essential not only for legal compliance but also for leveraging AI responsibly to gain competitive advantage.


Implications for Employment Relationships


As AI continues to evolve, so too must the strategies of businesses to harness its potential while mitigating its risks, ensuring a harmonious and legally compliant integration of AI into the workplace. 


Employers must now be vigilant in both securing their data against misuses of AI and ensuring compliance with evolving regulations like the EU AI Act. Updating IT and security policies, as well as raising awareness and training staff, are essential preventive measures. At the same time employers shall make sure that they secure the health and safety of employees, that is they properly deal with issues relating to technological stress and the right to disconnect and respect employees’ privacy and  rights with regard to monitoring in the workplace.

 

You can contact us for more information: info@2e-law.com


© 2024 by Alexandros Efstathiou & Chrysanthi Epifaniou (2E Law). All rights reserved.

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