Iris Taling, 3 December 2025

AI and employment law

Artificial intelligence (AI) has become an integral part of the workplace. From scanning CVs to assessing performance and even making decisions about dismissal, AI is playing an increasingly important role. The European AI Regulation has been in force since 1 August 2025 and will come into force in stages. The first rules have been in force in the Netherlands since 2 February 2025. Moreover, the entire regulation must be implemented in the Netherlands legislation by 2 August 2027. This AI Regulation also has consequences for employment law. In this blog, we explain what this means for employers and what you need to bear in mind.

The core of the AI Regulation

The AI Regulation classifies AI systems based on risk. Therefor, the higher the risk of an AI system, the stricter the rules. There are three categories:

Unacceptable risk: These systems will be banned from 2 February 2025. This concerns AI that can manipulate, discriminate against or otherwise harm people.
High risk: Strict rules apply to these systems because they affect the safety and fundamental rights of people affected by the system, such as job applicants and employees. The obligations will apply from August 2026.
Limited or minimal risk: This mainly concerns transparency. Users must be aware that they are dealing with AI. These rules will also apply from August 2026.

AI systems in the workplace

In labour law, the focus is mainly on high-risk AI systems. These systems support or make decisions that can have a major impact on career opportunities, income and equal treatment. Errors or biases in these systems can lead to unequal opportunities, discrimination or other forms of harm to those involved. It is therefore essential that strict rules apply to such AI systems.

The AI Regulation mentions the following systems:

AI systems for recruitment, selection and personnel management. Examples include tools that analyse CVs, screen job applications or assess candidates during tests.
AI systems that make decisions about promotions, performance reviews or even dismissal.

What does this mean for employers?

Employers have obligations when it comes to high-risk AI systems. Employers must exercise extra care. This means, among other things:

Working according to the instructions: Employers must take appropriate technical and organisational measures to ensure that AI is used in accordance with the instructions accompanying the systems.
Human supervision: There must be persons within the organisation who have the necessary skills, training and authority. This means that persons within the organisation must be trained to assess the risks of the AI system. If there is a risk, they must be able to assess when an AI system should be stopped or when a report should be made.
Keeping log files: The use of AI systems must be recorded. This includes who uses it, when and for what purpose.

Non-compliance with the AI Regulation can be costly for employers. Violation of the obligations can lead to high fines and legal proceedings. Consider, for example, a situation in which a job applicant disagrees with the rejection on the grounds of discrimination.

Role of the works council

The AI Regulation also assigns a clear role to the works council (WC). According to the Regulation, employee representatives and employees have a right to information. This right to information relates to the application of a high-risk AI system before it is used in the workplace. In addition, the Works Councils Act (WOR) also provides for information rights and even advisory rights for the works council. This right to be consulted often comes into play as soon as the employer intends to implement an AI system, allowing the works council to contribute ideas and advice at an early stage.

Conclusion

AI offers opportunities, but also entails risks for employers. The AI Regulation requires employers to exercise greater care. In practice, we have noticed that working with AI systems in the workplace often raises questions or can cause discussion. Are you unsure whether your AI systems comply with the rules, or would you like to know how to use high-risk AI systems safely? Please feel free to contact us. We are happy to assist you.

In the next blog, we will discuss the impact of AI on dismissal law.