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The EU AI Act classification framework for workforce AI

A product-agnostic walkthrough of the EU AI Act classification decision for workforce AI systems. It exists to help you fill in one classification memo per system you run — the memo is the artefact your governance file, your works council, and your counsel actually need.

v1.0 · Last reviewed 10 July 2026 · Owned by Founder

Checked against the European Commission's draft classification guidelines of 19 May 2026.

A maintained compliance document, not legal advice — take the reasoning to your counsel.

The artefact

The classification memo template

One memo per workforce AI system: Article 50 position, Annex III point 4 screen, derogation stance, drift triggers, sign-off. Free, ungated, editable — everything below explains how to fill it in, section by section.

Download .md

How to use this framework

If you own AI governance for a workforce, your deliverable this year is not a point of view on the AI Act. It is a stack of classification memos: one per system that screens applicants, talks to employees, summarises listening data, or feeds anything that looks like a people decision. Download the template above, then use the sections below — each one annotates the matching section of the memo — to fill it in for your first system.

Two dates drive the exercise, and they are fixed. From 2 August 2026, Article 50 requires any AI system that interacts directly with people to say so, with the fining powers live the same day. From 2 December 2027, the Annex III high-risk regime applies to standalone employment AI — the Digital Omnibus replaced the original August 2026 date with fixed calendar dates, and the remaining flexibility runs earlier, never later. We've written up both deadlines in detail: the Article 50 disclosure duty and what December 2027 actually requires.

The framework is deliberately product-agnostic. It works on a chatbot in a benefits portal, an engagement survey platform, a video-interview screener, or our own product — we run it on Tadeus in public at How Tadeus classifies itself.

Not legal advice

This framework and the memo template are structured reasoning tools, checked against the Commission's draft classification guidelines of 19 May 2026. The output of the exercise is a memo you take to your counsel — not a decision you rest on.

First, describe the system honestly

Classification runs on use, not on product category — so the memo starts by pinning down what the system is actually deployed to do, not what its marketing says. Three fields in section 1 do most of the work.

Your role under the Act. Providers build or substantially modify AI systems; deployers use them under their own authority. The split matters commercially: embedding a vendor's system transfers the provider obligations (risk management, documentation, logging design, conformity assessment) to the vendor, while the deployer obligations — using the system per its instructions, assigning competent oversight, retaining logs, informing workers and their representatives — stay with you no matter what you buy.

Deployment contexts. List every live or planned use separately. The same listening tool can be out of scope in a comprehension-check deployment and squarely high-risk in a performance-signals deployment. Each context gets its own pass through sections 2–4; if that produces different answers, the memo should say so rather than average them.

From the memo template

1. System identification

  • System name and vendor
  • Your role under the ActProvider, deployer, or both. Providers build or substantially modify the system; deployers use it under their own authority. Embedding a vendor's system transfers the provider obligations to the vendor — the deployer obligations stay with you regardless of what you buy.
  • Intended purpose as documentedQuote the vendor's stated intended purpose or instructions for use. Classification runs on use, not on product category, so what the paperwork says the system is for matters.
  • Deployment contexts in scope of this memoList every live or planned use. Each context is classified separately in sections 3–4: the same system can be out of scope in one deployment and high-risk in another.
  • Memo owner and date

The Article 50 test: does it interact with people?

Article 50 is the near deadline and the easy test. If the system is built to interact directly with natural persons — a chatbot, a voice agent, a conversational survey — the person must be told they are dealing with an AI, before or at the first interaction, in a clear and distinguishable form. This applies to all AI systems in scope, not just high-risk ones, and it applies from 2 August 2026.

Two things trip teams up. First, the "obvious from context" exception is judged from the perspective of the average person actually exposed — and a voice that greets an employee by name, in their own language, with human pacing, is engineered specifically not to be obvious. The more human the system sounds, the more clearly it must say it is not. Second, the obligation is satisfied by evidence, not configuration: when a works council or regulator asks, "we enabled the disclosure setting" is not an answer. A timestamped, per-interaction record of the disclosure is.

So the memo asks the vendor question worth asking in writing: for a named person on a named date, can you produce a record showing they were told, and in what language? The full argument is in our Article 50 piece.

From the memo template

2. Article 50 — transparency (applies from 2 August 2026)

  • Does the system interact directly with natural persons?Yes/no, with the basis. Chatbots, voice agents, and conversational survey tools are in; batch scoring engines with no human-facing interaction are not.
  • How is disclosure delivered?Describe the mechanism and its timing relative to the first interaction.
  • Can you evidence disclosure per interaction?For a named person on a named date: can you produce a timestamped record showing they were told, and in what language? A configured setting is a behaviour; the obligation is satisfied by a record.
  • Article 50 positionIn scope and evidenced / in scope with a gap (state the remediation and date) / out of scope (state why).

The Annex III point 4 test: what do its outputs touch?

This is the classification question proper. Annex III point 4 makes AI high-risk when it is used for any of six employment functions. Answer each limb per deployment context — with evidence of where the output actually flows, not an org-chart opinion.

Annex III point 4 limbIn scope when the output informs…
Recruitment & selectionjob advertising, application screening, filtering, or candidate evaluation
Promotionwho advances, or inputs to promotion decisions about named people
Terminationwho is managed out, performance-improvement triggers, redundancy selection
Task allocationdistribution of work based on individual behaviour or personal traits
Monitoringsurveillance or tracking of an individual's activity or conduct
Evaluationassessment of an individual's performance or behaviour

The pivotal field is the aggregate-versus-individual one. A listening programme that is genuinely descriptive — aggregate outputs that never inform an outcome for a named person — likely sits outside the regime. The moment its output feeds who gets promoted, who gets managed out, or how work is distributed, the deployment is in. The system does not decide its own classification; its deployment does.

From the memo template

3. Annex III point 4 — high-risk screen (applies from 2 December 2027)

  • Recruitment or selection: does output inform advertising, screening, filtering, or evaluation of candidates?
  • Promotion or termination: does output inform decisions on work-related relationships?
  • Task allocation: does output inform allocation of work based on individual behaviour or traits?
  • Monitoring and evaluation: does output inform monitoring or evaluation of an individual's performance or behaviour?
  • Do outputs concern named individuals or aggregates only?Genuinely descriptive, aggregate-only output that never informs an individual outcome points away from Annex III. The moment output informs who is promoted, who is managed out, or how work is distributed, the deployment is in scope.
  • Annex III positionHigh-risk / not high-risk / conditional on the deployment controls recorded in section 5.

The derogation, and what claiming it costs

Article 6 contains a derogation for systems that fall within an Annex III category but do not pose a significant risk of harm: a narrow procedural task, improving the result of a previously completed human activity, detecting decision patterns without replacing or influencing human assessment, or a purely preparatory task. It is not available at all where the system profiles natural persons.

The temptation is to file everything under it — and the final Digital Omnibus text quietly closed the comfortable version of that move. Providers must document the assessment and register the system in the EU database even where they consider it exempt. Self-classification is now a documented, reviewable claim, not a private opinion. Claiming the derogation is sometimes right; claiming it casually converts a classification question into a filed position a regulator can mark wrong.

So the memo makes the cost explicit: name the limb, clear the profiling bar, and record where the assessment is filed and when the registration will be made. If a vendor tells you their employment-adjacent system is exempt, ask to see that filing.

From the memo template

4. Article 6 derogation — only if claiming exemption

  • Derogation limb relied on, and whyName the limb and set out why the system's actual role in the decision fits it. Optimistic self-classification is the first trap regulators are briefed to look for.
  • Profiling checkConfirm the system does not profile natural persons; profiling defeats the derogation entirely.
  • Registration and documentation acknowledgmentRecord where the assessment is filed and when the EU database registration will be made.
  • Derogation positionClaimed / not claimed / not needed (not in Annex III).

Use-drift: the answer changes when the use changes

Most misclassification won't come from bad legal analysis. It will come from drift: a listening tool deployed for communication in January feeding a performance dashboard by June, with nobody re-reading the paperwork. The classification follows the drift whether or not the memo does.

Section 5 is therefore the most operational part of the memo: name the specific changes that would flip the answers above, and assign someone to watch for them. Typical triggers for a workforce tool: outputs routed into performance reviews; per-individual filtering added to a dashboard; integration into task allocation; export of individual-level results to line managers; a new deployment context that never went through this memo.

From the memo template

5. Use-drift triggers

  • Changes that would change this classificationExamples: outputs routed into performance reviews; per-individual filtering added to dashboards; integration into task allocation; export of individual-level results to line managers; a new deployment context not listed in section 1.
  • Drift controls and review cadenceThe controls that prevent the drift, the owner who reviews this memo, and how often.

Conclude, sign, and calendar the review

The conclusion is a single line plus its consequences. Whatever the classification, write down the obligations that follow and their dates — that list is what turns the memo into a budget line.

What each classification commits you to

ClassificationWhat followsFrom
Interacts with people (any risk level)Article 50 disclosure at first interaction, plus exportable evidence it happened2 Aug 2026
High-risk (Annex III point 4)Risk management, data governance, technical documentation, logging, instructions for use, human oversight, accuracy & robustness (Articles 9–15), conformity assessment, EU database registration; deployer duties under Article 26 including informing workers2 Dec 2027
Annex III category, derogation claimedDocumented assessment and EU database registration of the exemption claim2 Dec 2027
Out of scopeRecord the reasoning and the drift triggers that would bring it in

Then sign it and calendar the re-run: when the Commission's final classification guidelines land (expected by the end of 2026), and quarterly regardless. A memo with a named owner and a review date is governance; a memo without them is a blog post. For the full translation of the Articles 9–15 obligations into what a conversational system actually has to produce, see the December 2027 piece.

From the memo template

6. Conclusion

  • ClassificationHigh-risk (Annex III point 4) / high-risk obligations avoided via a registered Article 6 derogation / transparency obligations only (Article 50) / out of scope.
  • Obligations that follow, with datesArticle 50 disclosure and evidence from 2 August 2026. If high-risk: risk management, data governance, technical documentation, logging, transparency to deployers, human oversight, accuracy and robustness (Articles 9–15), plus conformity assessment and EU database registration, from 2 December 2027 for standalone employment systems. If the derogation is claimed: documented assessment and registration.
  • Registration position
  • Next review dateRe-run this memo when the Commission's final classification guidelines land (expected end of 2026), and at least quarterly.

Versioning

This framework and the memo template are maintained documents, not campaign content. Each version is checked against the Commission guidance current at the time — v1.0 against the draft classification guidelines of 19 May 2026 — and re-checked when the finals land. The change log below records every revision. If you'd rather not check back, the notification form at the end of this page emails you when the document changes, and nothing else.

Change log

  • 10 July 2026 — v1.0
    First public version.

Get notified when this document changes

The Commission's final classification guidelines are expected by the end of 2026. We'll re-check this document against them and email you the diff — nothing else, ever.