{"id":9330,"date":"2025-08-21T15:51:45","date_gmt":"2025-08-21T13:51:45","guid":{"rendered":"https:\/\/www.labourlaw.at\/from-credit-scoring-to-applicant-management-companies-must-be-able-to-explain-algorithm-based-decisions\/"},"modified":"2025-08-21T15:51:45","modified_gmt":"2025-08-21T13:51:45","slug":"from-credit-scoring-to-applicant-management-companies-must-be-able-to-explain-algorithm-based-decisions","status":"publish","type":"post","link":"https:\/\/www.labourlaw.at\/en\/from-credit-scoring-to-applicant-management-companies-must-be-able-to-explain-algorithm-based-decisions\/","title":{"rendered":"From Credit Scoring to Applicant Management: Companies Must Be Able to Explain Algorithm-Based Decisions"},"content":{"rendered":"<p data-start=\"68\" data-end=\"326\">On 27 February 2025, the CJEU ruled in the case of Dun &amp; Bradstreet Austria (C-203\/22): In the case of automated decisions within the meaning of Art. 22 GDPR, data subjects have a right to a comprehensible explanation of the procedures used and the outcome.<\/p>\n<p data-start=\"328\" data-end=\"642\">\ud83d\udd0d Key statements:<br \/>\n\u2022 Even complex &#8220;black box&#8221; systems do not exempt controllers from the duty to explain<br data-start=\"432\" data-end=\"435\" \/>\u2022 Trade secrets do not automatically override the right of access<br data-start=\"500\" data-end=\"503\" \/>\u2022 Counterfactual explanations can be helpful, for example: &#8220;If your monthly income had been \u20ac500 higher, you would have received the loan.&#8221;<\/p>\n<p data-start=\"644\" data-end=\"949\">\ud83d\udcbc Relevance for HR practice:<br data-start=\"673\" data-end=\"676\" \/>Automated selection decisions are generally not permitted under data protection law in the HR context, unless a works agreement provides the necessary legal basis. Beyond that, the employer must be able to explain the decision \u2014 something many AI tools currently cannot do.<\/p>\n<p data-start=\"951\" data-end=\"1072\" data-is-last-node=\"\" data-is-only-node=\"\">For more details, see the article by <em>Tinhofer<\/em>, ASoK 2025, 231.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 27 February 2025, the CJEU ruled in the case of Dun &amp; Bradstreet Austria (C-203\/22): In the case of automated decisions within the meaning of Art. 22 GDPR, data subjects have a right to a comprehensible explanation of the procedures used and the outcome. \ud83d\udd0d Key statements: \u2022 Even complex &#8220;black box&#8221; systems do&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9330","post","type-post","status-publish","format-standard","hentry","category-unkategorisiert"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - 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