The Great Reset: How the EU AI Act is Reshaping Labor Relations in Greece

As we navigate the summer of 2026, the full implementation of the European Artificial Intelligence Act (AI Act) is no longer a distant legal theory but a daily reality fundamentally transforming workplaces in Greece and across the EU. From large industrial units in Attica to tourism enterprises in Crete, the use of algorithms for hiring, evaluating, and monitoring employees is under the microscope of a new, stringent regulatory framework that aims to balance technological efficiency with human dignity.

Algorithmic Management and the Control of 'High-Risk' Systems

The Regulation categorizes AI systems based on the risk they pose to fundamental rights. In the field of employment, most systems used for human resource management are classified as "high-risk." This means that companies using software for automated CV screening, performance tracking, or decision-making regarding promotions and terminations must now comply with strict transparency and human oversight requirements.

In Greece, where the labor market is characterized by a large number of Small and Medium Enterprises (SMEs), the challenge is twofold. On one hand, the need for modernization through AI is imperative to increase productivity. On the other hand, the lack of expertise regarding the legal obligations stemming from the Act creates a security gap. Employees now have the right to know when a decision affecting them has been made by an algorithm and to request explanations for the logic behind it.

• Mandatory fundamental rights impact assessments before deploying AI systems.
• Ensuring the quality of training data to prevent discrimination and bias.
• The worker's right to human intervention and the ability to contest automated decisions.

Digital Surveillance and the Right to Privacy

One of the most contentious aspects of this new era is digital surveillance. Systems that analyze body language, tone of voice, or typing rhythm to measure stress or productivity are now targeted by regulators. The Act explicitly prohibits the use of AI systems that exploit worker vulnerabilities or use real-time biometric identification without exceptionally serious reasons.

"Artificial intelligence must not become the invisible overseer that punishes without cause, but the tool that liberates the worker from routine," note legal experts in Athens.

Greek legislation, through Law 4808/2021, had already taken some steps toward protection against digital monitoring, but the European Regulation offers a much more powerful arsenal. The Hellenic Data Protection Authority (HDPA) now assumes a central role in supervising the implementation of the AI Act, examining complaints about algorithmic discrimination related to gender, age, or ethnicity.

The Role of Trade Unions and Collective Bargaining

In this new environment, the role of trade unions becomes more critical than ever. "Algorithmic transparency" must become a central pillar of collective bargaining. Unions are called upon to train their members in new technologies and demand worker participation in the design and implementation of AI systems within the enterprise.

Already, some large companies in the telecommunications and banking sectors in Greece have initiated consultations with their unions to create "AI Codes of Ethics." These agreements set clear limits on the use of employee data and ensure that the introduction of AI will not lead to mass layoffs but to the reskilling of staff.

Conclusions: A New Social Contract?

Artificial intelligence in labor relations is not just a technical issue but a profound political and social challenge. The AI Act provides the framework, but its success will be judged in practice. Greece has the opportunity to lead by turning compliance with the Regulation into a competitive advantage, attracting talent seeking a fair and technologically advanced work environment. The balance between innovation and labor rights is the great bet of the current decade.