- Chinese law requires a “major change in objective circumstances” to terminate a contract
- AI and automation alone are not enough to justify firing a worker
- Workers also have some responsibility to keep pace with AI
China has banned companies from firing workers on the grounds that they can be replaced by AI, making it one of the first countries to strengthen human labor protections amid increasing workplace automation.
The Hangzhou Intermediate People’s Court concluded in substance that AI job replacement does not constitute a “major change in objective circumstances”, which would generally allow a company to terminate a worker’s contract.
It’s also worth noting that this happened in Hangzhou, as the city has been described as a major AI hub in China.
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China strengthens protection of human labor against AI
The court ruled that employers must show valid legal grounds beyond automation when laying off staff, and that simply reassigning workers at lower wages would also be unacceptable.
This case stems from the firing of a real tech worker without high enough compensation, but it also refers to other workers who have been displaced by AI.
One of the lawyers involved highlighted the importance of the case in today’s age of automation, explaining that companies must also embrace the social responsibilities associated with productivity gains generated by AI.
“Technological progress may be irreversible, but it cannot exist outside a legal framework,” said Wang Tianyu, a researcher at the Chinese Academy of Social Sciences.
However, the Chinese court also emphasizes that human employees must also contribute to technological discourse and progression by continuing to adapt to changing work trends – staying ahead of the AI curve with all the appropriate skills and training is as much their responsibility as that of their employer.
Although China could be among the first to issue such a ruling, other countries and regions are expected to follow suit as AI continues to impact global work, with EU AI law also covering some employment-related topics.
Via The register
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