Austrian Data Protection Authority – Court Ruling (Austria, 2023)
An Austrian court ruled that a public employment service's use of an algorithm to assess jobseekers was lawful. This matters because it sets guidelines for how companies can use technology to support job placement without violating privacy rights.
What happened
The public employment service used an algorithm to categorize jobseekers based on various factors.
Who was affected
Jobseekers who were assessed by the algorithm to determine their employment opportunities.
What the authority found
The court found that the algorithm's use complied with data protection rules, as it was not used for direct job placement but for support.
Why this matters
This ruling indicates that using algorithms for assistance in job placement can be acceptable if done carefully. Organizations should ensure that their technology respects privacy while providing valuable services.
GDPR Articles Cited
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National Law Articles
The controller, the Public Employment Service in Austria, supports workers in (re)integrating into the labour market by offering various services, including a counsellor that discusses labour market opportunities with the jobseeker. In order to assess the jobseeker’s labour opportunities on the market, the controller used an algorithm to calculate the degree of probability for jobseekers to be employed for a certain number of days, based on: (1) age group, (2) gender, (3) country group, (4) education, (5) health impairment, (6) care responsibilities, (7) occupational group, (8) career history and (9) the regional labour market situation and the duration of cases at the controller. The algorithm did not include motivation, self-help potential of the jobseeker, addiction, debt or housing situation. Based on this, the algorithm divided jobseekers into the following three groups: (1) Service jobseekers with high labour market opportunities, (2) Care jobseekers with low labour market opportunities, (3) Consultancy jobseekers with medium labour market opportunities. The result was used as a starting point for counsellors to work with jobseekers to assess their potential and any obstacles in the labour market integration. The algorithm itself was not used for job placement, but only for targeted support and assistance, meaning, choosing the right support strategy based on which group the jobseeker was assigned to. The controller claimed it had a legal basis under Austrian national law (the Arbeitsmarktservicegezetz, AMSG) to process data with the help of an algorithm. Under Article 4(4) GDPR, this processing of data is considered profiling. According to Austrian data protection law (see [https://www.ris.bka.gv.at/eli/bgbl/i/1999/165/A1P1/NOR40139563 Article 1 §2 DSG]), processing for the performance of a public task needs to be authorised in Asutrian law. However, the DPA found that a legal basis for this processing could not be found in the AMSG. The
Outcome
Court Ruling
A ruling by a national court on a data-protection matter.
Related Cases (1)
Other cases involving Austrian Data Protection Authority in AT
Details
About this data
Cite as: Cookie Fines. Austrian Data Protection Authority - Austria (2023). Retrieved from cookiefines.eu
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