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EU AI Act for HR Technology Companies — Scanara

EU AI Act compliance for AI systems in recruitment, performance management, and workforce planning. Annex III §4 obligations and automated compliance scanning.

Annex III §4 — High-Risk Classification

AI systems used in recruitment, selection, promotion, task allocation, and performance monitoring in employment contexts are classified as high-risk under EU AI Act Annex III, Category 4. Compliance required by August 2, 2026.

Why HR AI compliance is high-stakes

Broad Annex III §4 scope

The scope of Annex III §4 is wider than most HR tech teams realise. Recruitment screening, interview scoring, performance rating, task allocation, and employee monitoring all fall within it. Many HR AI products are implicitly high-risk.

Deployer obligations for customers

HR tech companies that sell AI tools to employers must provide instructions for use that enable deployer compliance. If employers cannot meet their Article 26 obligations because the tool lacks the required transparency, the provider may share liability.

FRIA for public-sector HR deployers

Public bodies using HR AI — government departments, public hospitals, universities — must conduct a Fundamental Rights Impact Assessment (FRIA) under Article 27. HR tech vendors selling to public sector customers need to support this process.

How Scanara helps HR tech companies

Annex III §4 scanning

Scanara's rules are tuned for recruitment and HR AI: screening algorithm explainability (Article 13), adverse decision notification requirements (Article 14), bias and accuracy monitoring (Article 15), and data governance for sensitive categories (Article 10).

Provider/deployer role classifier

Scanara maps findings to the correct obligation set based on whether your organisation is the AI provider, the deployer, or both. HR tech vendors and their enterprise customers have distinct — and sometimes shared — obligations.

FRIA workflow for public-sector deployers

Guided FRIA workflow for Article 27 obligations. Pre-populated with scan findings relevant to fundamental rights — bias in selection, transparency of algorithmic decisions, human oversight mechanisms.

Instructions for use generation

Scanara helps HR tech providers generate compliant instructions for use (Article 13) that enable their deployer customers to meet their Article 26 obligations — reducing provider liability.

The cost of non-compliance in employment AI

€52K+/yr

Typical annual compliance cost for manual EU AI Act management of 3–5 HR AI systems — legal review, documentation, and assessment preparation.

€15M

Maximum fine for high-risk AI violations. Employment AI that discriminates or lacks required transparency faces additional exposure under equality and anti-discrimination legislation.

Frequently asked questions

Scan your HR AI for Annex III §4 compliance

See how Scanara maps your recruitment and employment AI to Annex III §4 obligations and generates your compliance documentation.

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How Scanara Helps

Scanara automates EU AI Act compliance from code to dossier. Connect your GitHub repos and get compliance reports in minutes.