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August 2025

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The Committee on Employment and Social Affairs of the European Parliament recently published a draft report on digitalisation, AI and algorithmic management in the workplace. It makes a number of recommendations including for a directive specifically regulating ‘algorithmic management’ in the workplace with protections extending to self-employed individuals in addition to workers. There are a number of steps in the EU legislative process before these proposals could become legally binding. Given their significance, including the broad definition of ‘algorithmic management’, impacted organisations should nevertheless monitor if and how they develop.

On 8 July 2025, the Dubai Court of Cassation questioned the enforceability of late payment compensation in Islamic finance. Unlike default interest, such compensation is not retained by financiers but donated to charity. The ruling may affect market practices, though its broader impact remains uncertain under UAE law.