- Chinese law requires a “major change in the objective circumstances” to terminate a contract
- AI and automation are not enough by themselves to justify firing an employee
- Workers also have some responsibility to keep up with AI
China has made it illegal for companies to fire workers on the grounds that they can be replaced by artificial intelligence, making it one of the first countries to increase protections for human labor amid a rise in workplace automation.
The Hangzhou Intermediate People’s Court essentially concluded that AI-powered job replacement does not constitute a “major change in the objective circumstances” that would normally allow a company to terminate a worker’s contract.
It is also notable that this happened in Hangzhou because the city has been described as a major Chinese AI hub.
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China increases protection of human labor against artificial intelligence
The court ruled that employers must show valid legal reasons beyond automation when laying off staff, and that simply reassigning lower-wage workers would also be unacceptable.
This case stems from an actual tech worker who was fired and not matched with a sufficiently high compensation payout, but it also refers to other workers who have been displaced by AI.
One of the lawyers involved noted the importance of the case in today’s automated era, explaining that companies must also bear the social responsibility associated with AI’s productivity increases.
“Technological progress may be irreversible, but it cannot exist outside a legal framework,” explained Wang Tianyu, a researcher at the Chinese Academy of Social Sciences.
However, the Chinese court also emphasizes that human employees must also contribute to the discourse and technological development by continuing to adapt as work trends shift – staying ahead of the AI curve with all the right skills and training is as much their responsibility as their employer’s.
While China may be among the first to issue such a ruling, other countries and regions are expected to follow suit as AI continues to have an impact on global work, with the EU’s AI law also covering some employment topics.
Via The register
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