AI and Employment Law in 2025: Reorganization, Co-Determination and Confidentiality in Practice

Artificial intelligence (AI) has penetrated virtually all sectors in a short time. From healthcare to retail and from industry to services: processes are becoming smarter, faster and sometimes fully automated. This progress offers many opportunities, but also raises questions about rights, duties and responsibilities within organizations.

In 2025, three topics play a major role in this: co-determination, confidentiality of information and changes in functions and staffing.

1. Co-determination: AI requires early involvement

Implementing an AI system is often more than a technical step. It can have far-reaching consequences for work processes, decision-making and people’s daily functioning. Therefore, it is important to involve those who have a say in important changes early on.

A works council or staff representation has the legal right to provide advice on the introduction of new technology that affects the organization. For systems that assess applications, measure performance or make schedules, additional requirements apply under European legislation.

Good preparation means:

  • Providing timely insight into the purpose, operation and risks of the system.
  • Explaining how the technology has been trained and how supervision is arranged.
  • Clearly mapping out the consequences for tasks and functions.

2. Confidentiality and AI: prevention is better than cure

Generative AI tools, such as text writers or programming assistants, often work via external servers. Data entered into them may end up outside the organization. This can lead to data breaches, copyright infringement or loss of trade secrets.

To prevent this, it is wise to make clear agreements about the use of AI. Consider a policy that states which information may and may not be shared, and agreements in contracts or internal regulations.

Effective measures include:

  • Clear guidelines for safe use of AI applications.
  • Training on the risks and how to avoid them.
  • Agreements on sanctions for violation of confidentiality rules.

3. AI and changes in functions: reorganization in view

AI can make work processes more efficient, but sometimes also lead to the disappearance or change of functions. If tasks structurally disappear and this leads to fewer jobs, there may be a reorganization.

For a reorganization, first of all, the regular legal ground rules apply (see also our white paper on reorganization).

Specifically for a reorganization that originates from AI, we advise paying extra attention to the reason for the reorganization and the choice for AI. This is not only necessary to create internal support, but also to – if there is a loss of jobs – meet the conditions that apply for a dismissal application with the UWV. The UWV tests whether a reorganization meets the legal criteria for economic dismissal.

Important elements in that substantiation include:

  • Clear reason and necessity
    Explain concretely why the AI application is being introduced. Consider demonstrable improvements in efficiency, cost savings or quality enhancement, and why these changes are necessary for efficient business operations.
  • Substantiation with figures and facts
    Use, for example, financial reports, production or performance figures, and comparisons of the old and new working methods. This helps to objectively demonstrate that the elimination of functions is a logical consequence of the change.
  • Research into alternatives
    The UWV expects that it is investigated whether there are other solutions to achieve the objectives without dismissals, such as redeployment to other functions, retraining or combining tasks.
  • Transparent process and communication
    Document how and when stakeholders were informed, which questions or concerns were discussed and how they were responded to. This shows that the process was fair and careful.
  • Application of the reflection principle
    If functions are eliminated, the selection of who becomes redundant must take place according to the legal reflection principle, whereby age groups are proportionally affected.

By following these steps, not only are the requirements for efficient business operations met, but also the formal conditions for economic dismissal. This reduces the risk of legal procedures and increases the chance that the transition to a new way of working proceeds smoothly.

🔍 Conclusion: AI Changes Work, but Employment Law Changes with It

AI presents us with new legal challenges. Employers, HR professionals, works council members and employees would be wise to familiarize themselves in time with the employment law consequences of AI.

Implementing AI without legal safeguards is asking for trouble. A well-considered AI policy prevents complaints, errors and procedures – and strengthens trust in the workplace.

At Wessel Van der Lans we closely monitor legal developments and advise on legal issues regarding the implementation of AI in the workplace.

👨‍⚖️ Need Help with AI and Employment Law?

Do you have questions about AI within your organization? Or do you want to update employment contracts, policies or works council processes?

📞 Contact one of our specialists.

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