Automated Decision-Making in The EU Member State’s Public Administration: The Compliance of Automated Decisions of the Estonian Unemployment Insurance Fund with Estonian Administrative Procedure Law

Automated process control has been used for a long time. Innovation and information technology achievements have made it possible to use automation in the State governance. Algorithm-based automated decisions are integral part of the concept of e-Government. Automated decisions are becoming more and more prevalent in modern society of the EU. Using automated decisions in public administration is a challenge for Administrative Law, because it has to evolve and keep up with the usage of new technologies, keep the legal balance between the cost-efficiency and operational flexibility of the State in general and at the same time ensure the protection of rights of individuals in each Member State and in the EU as a whole. Estonia is EU Member State and its public sector uses automated decisions but there are no direct legal provisions regarding what automated decision is, what are the conditions for issuing them, what are the safeguards to avoid the violation of rights of individuals etc. The right to issue automated decision is based only on the authorisation norm stipulated in a specific act regulating the field of activity of administrative authority. The Estonian Unemployment Insurance Fund is one of the administrative authorities which issues automated decisions in its field of activity. The aim of this paper is to examine and find out whether the automated decisions used by Estonian Unemployment Insurance Fund comply with the general principles of administrative procedure and the EU rules on data protection but also to identify aspects where legal adjustment is needed and propose legislative amendments. The paper is based on the analysis of relevant scientific books, articles, legal acts, supported by relevant case law and other sources.