Artificial Intelligence and remote Monitoring of employees: What companies need to do

Prepared by Francesca Tironi, Giulia Spalazzi, e Alessia Brambilla

The growing use of digital tools, algorithms and artificial intelligence systems can support business organization and workforce management, offering employers new opportunities. However, technological developments do not alter or limit the fundamental protections granted to employees. In particular, the use of Artificial Intelligence in HR may significantly expand the scope for monitoring work activities, thereby falling within the rules on remote monitoring set out in Article 4 of the Italian Workers’ Statute (Law No. 300/1970 – Statuto dei Lavoratori).

AI and remote monitoring of employees: The rules remain unchanged

In its study dated 22 September 2026, entitled “The Employer’s Power (and Duty) to Monitor in Light of the Latest Technological Innovations – Initial Considerations on Artificial Intelligence and Robotics”, the Fondazione Studi dei Consulenti del Lavoro examined the impact of artificial intelligence and robotics on employers’ monitoring powers.

According to the Fondazione, the use of technological tools capable of monitoring, measuring or assessing work activities does not alter the existing legal framework and therefore remains subject to Article 4 of the Italian Workers’ Statute. As is well known, this provision permits the use of tools that may enable remote monitoring solely for organizational and production purposes, workplace safety requirements or the protection of company assets.

Accordingly, where a technology enables the monitoring of employees’ activities, its installation requires either a prior trade union agreement or, if no agreement is reached, authorization from the Italian Ispettorato del Lavoro. The related information obligations also continue to apply, including the specific prior notice required under Article 1-bis of Legislative Decree No. 152/1997, together with the requirements arising under personal data protection legislation.

In this regard, it should be recalled that case law has consistently held that employees’ individual consent cannot replace these requirements, as the safeguards laid down by Article 4 of the Italian Workers’ Statute protect collective interests.

In light of the Foundation’s observations, the scope of these rules is not limited to cameras and video surveillance systems, but may also extend to productivity-monitoring software, applications that automatically assign tasks or work shifts, geolocation tools and algorithmic systems used to assess employee performance.

AI Act, prohibitions and human oversight

The AI Act, the European regulation (Regulation (EU) 2024/1689) governing the development and use of artificial intelligence systems in the European Union, entered into force on 1 August 2024 and introduced specific rules for the use of AI in the workplace. In particular, AI systems used for recruitment, performance assessment, activity monitoring and employment relationship management are classified as “high-risk” systems and will therefore be subject to specific compliance obligations.

Certain particularly intrusive uses remain prohibited, including systems designed to monitor employees’ emotions in the workplace, subject to limited exceptions relating to safety or medical purposes.

Of relevance is the principle that decisions concerning recruitment, amendment or termination of an employment relationship may not be entrusted exclusively to automated systems. The recent national decree implementing the AI Act provides that such decisions must be taken by a natural person and establishes that dismissals decided solely by an algorithm are null and void.

AI and Workplace Safety: when technology may become an obligation

A further area of interest highlighted by the Fondazione Studi concerns the relationship between new technologies and employers’ workplace health and safety obligations.

According to the view expressed in the study referred to above, AI and robotics should not be regarded solely as monitoring tools and, therefore, from a perspective that may potentially restrict employees, but may also serve as safeguards for the prevention of risks and the protection of employees’ health and safety. From this perspective, Article 2087 of the Italian Civil Code requires employers to take account of technological developments and to adopt all measures that, in light of experience and technological progress, are suitable for preventing workplace risks. As a result, in the future, certain AI-based tools may be regarded not only as an organizational option available to the company, but also as a safety measure to be assessed as part of the employer’s prevention obligations.

Consequences of Non-Compliance

Companies that install monitoring tools without complying with the procedures required by law expose themselves to significant risks.

On the one hand, a breach of the remote monitoring rules under Article 4 of the Italian Workers’ Statute may constitute a criminal offence and render the data collected inadmissible, including for disciplinary purposes. On the other hand, failure to comply with the information obligations relating to automated monitoring or decision-making systems may expose the employer to the penalties provided for under the Italian Transparency Decree and personal data protection legislation.

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From a practical perspective, companies intending to introduce artificial intelligence systems into workforce management should carry out a preliminary assessment of the functionalities offered by such tools, verifying whether they enable employee monitoring or automated decision-making. In such cases, it will be advisable to assess the requirements arising under the Italian Workers’ Statute, privacy legislation and the regulatory framework on transparency and artificial intelligence, in order to avoid significant regulatory and reputational risks.