Chinese Court Rules AI-Driven Dismissal Unlawful
A Chinese court ruled unlawful the dismissal of a quality assurance worker whose job was replaced by AI systems, finding that automation alone does not justify termination under Chinese labour law and that the offered alternative position with reduced pay was unreasonable.
What happened
A worker surnamed Chou was employed as a quality assurance supervisor from November 2022, with responsibilities including connecting user queries to large language models and filtering prohibited content. Later, AI systems took over Chou's work, and the company offered a lower position with reduced salary, which Chou rejected. The company then terminated Chou's contract citing organizational restructuring.
Reported impact
The worker lost their job due to AI automation of their responsibilities. The worker's proposed reassignment involved a significant pay cut, which was deemed not a reasonable alternative to dismissal.
Index analysis
The Hangzhou Intermediate People's Court ruled that termination was unlawful, finding that the application of AI does not constitute an 'essential change of circumstances' justifying contract termination under Chinese labour law. The court also found that the offered position with substantial wage reduction was not reasonable reassignment.
Governance controls
The court's decision affirmed that automation alone does not provide legal grounds for dismissal and established that employers must provide reasonable alternatives when workers are displaced by AI systems.
Classification
Sources and evidence
Sources not yet published
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