In a move that sets China apart from Western nations, its courts have declared that dismissing employees solely because an Artificial Intelligence can now perform their job is unlawful. This significant ruling interprets the adoption of AI as a strategic business decision, rather than an unforeseen change in circumstances that would legally justify termination under China's Labour Contract Law. This precedent was established in two separate cases, impacting workers who were let go when their roles were deemed automatable.
The first case involved a quality assurance supervisor in Hangzhou who was demoted and subsequently fired after the company decided its AI systems were advanced enough to handle his tasks. The court found in favour of the employee, ordering compensation. Similarly, in Beijing, a data collector whose job was eliminated due to a shift to AI-driven data collection was also found to have been unlawfully terminated. In both instances, the courts determined that implementing AI is a proactive business choice made by the company, not an external event beyond their control, thus not constituting grounds for dismissal under the labour law.
These rulings emerge at a time of significant global tech layoffs, with a substantial portion attributed to AI automation. While the US and EU grapple with how to address AI's impact on employment, with proposed legislation and regulations focusing on transparency and risk management, China has taken a more direct approach through its judiciary. The Chinese courts have effectively stated that the costs of technological advancement should not fall entirely on the workers. Companies that choose to automate roles must either retrain, reassign, or retain employees, rather than simply lay them off. This approach, while potentially increasing operational costs for businesses, prioritises social stability and worker protection amidst rapid technological change, suggesting a strategic decision to manage the economic benefits of AI while mitigating its social downsides.
Fuente Original: https://thenextweb.com/news/china-court-ai-layoffs-illegal-labor-law
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