The article explores the transformation of labour relations in the era of digitalization and the growing role of algorithmic personnel management. It is emphasized that over 250 specialized artificial intelligence (AI) tools currently operate in the global market, specifically designed for the field of human resource management (HR). This dynamic has led to the emergence of new approaches, including the concepts of Smart Human Resources 4.0 and Algorithmic Human Resource Management (AHRM). However, their implementation generates numerous risks to labour rights and freedoms, particularly through digital exploitation, which involves the systematic use of technologies to control, monitor, and exert algorithmic pressure on workers. From a philosophical and legal perspective, the study examines the impact of digital control on fundamental humanistic principles such as privacy, autonomy, and freedom of expression. Drawing on the ideas of J. Bentham, M. Foucault, I. Kant, J. Habermas, and contemporary theorists of digital ethics (D. Lyon, H. Nissenbaum, L. Floridi), the article argues that digital surveillance generates a “panoptic effect”, turning the worker into an object of observation and manipulation, thereby undermining the foundations of human dignity and autonomy. Special attention is given to defining digital labour exploitation as a modern form of labour exploitation that arises from the automation and digitization of work processes. The study identifies its key features: algorithmic coercion, digital monitoring, violation of privacy rights, manipulative rating and penalty systems, and the legal uncertainty of workers’ status within the platform economy. The article also discusses proposals to amend the Criminal Code of Ukraine with provisions establishing liability for digital labour exploitation and other forms of misuse of information technologies in employment relations. It is noted that the criminalization of such acts should become an integral element of national policy for the protection of labour and informational human rights in the digital environment. Based on the analysis, the author formulates recommendations for developing ethical and legal mechanisms for the responsible use of AI in the labour sphere: enhancing algorithmic transparency, introducing independent audits, ensuring the right of workers to appeal automated decisions, upholding principles of non-discrimination, and establishing legal liability for employers. The article concludes that integrating legal norms with philosophical and ethical principles will promote humanistic values and support the formation of an ethical model of labour management in the digital society.