- Chinese law requires a “major change in the objective circumstances” to terminate a contract
- AI and automation aren’t enough by themselves to justify laying off a worker
- Workers also have some responsibility to keep up with AI
China has made it illegal for companies to fire workers on the basis that they can be replaced by AI, making it one of the first countries to increase human labor protections amid a rise in workplace automation.
The Hangzhou Intermediate People’s Court essentially concluded that AI-driven job replacement does not constitute a “major change in the objective circumstances,” which would usually allow a company to terminate a worker’s contract.
It’s 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 human labor protections against AI
The court ruled that employers must show valid legal grounds beyond automation when laying off staff, and that simply reassigning workers with lower pay would also be unacceptable.
This case stems from an actual tech worker being fired and not matched with a sufficiently high compensation payout, but it also draws reference to other workers who have been displaced by AI.
One of the lawyers involved noted the significance of the case in today’s automated era, explaining that companies must also bear the social responsibilities associated with AI’s productivity boosts.
“Technological progress may be irreversible, but it cannot exist outside a legal framework,” Wang Tianyu, a researcher with the Chinese Academy of Social Sciences, explained.
However, the Chinese court also stresses that human employees must also contribute to the discourse and technological progression 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 might 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 labor, with the EU’s AI Act also covering some employment topics.
Via The Register
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