Chinese court rules replacing employee with artificial intelligence illegal
A court in Hangzhou, China, ruled that companies cannot dismiss employees solely because their jobs can be performed by artificial intelligence. The case involved an employee named Zhou, who was laid off after his role was deemed unnecessary due to technological advancements. The court found the dismissal illegal, stating that transitioning to AI does not invalidate labor contracts, and significant pay cuts in alternative positions are not considered fair. This decision aligns with a previous ruling in Beijing that favored an employee in a similar situation.
A court in Hangzhou, China, has issued a ruling prohibiting companies from firing employees solely on the grounds that their work can be performed by artificial intelligence. Local media reported on this. Ixbt.com reported this.
According to case files, an employee named Zhou worked at an online company as a quality checker for artificial intelligence responses. His monthly salary was 25,000 yuan.
Subsequently, the employer stated that his position had become redundant due to technological advancements.
The company offered the employee a different position with a salary of 15,000 yuan. After Zhou rejected the offer, his employment contract was terminated.
The court found this dismissal to be illegal.
The court's ruling emphasized that a business's transition to artificial intelligence does not mean that an employment contract cannot be fulfilled. Furthermore, a sharp decrease in income in a newly offered position is not considered a fair transfer.
The court stated that while companies have the right to implement new technologies, they must take into account the legal rights of their employees. Previously, a similar ruling in favor of an employee was issued in Beijing.
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