"The termination grounds cited by the company did not fall under negative circumstances such as business downsizing or operational difficulties, nor did they meet the legal condition that made it 'impossible to continue the employment contract.'"
"Companies cannot unilaterally lay off employees or cut salaries due to technological progress, the court said in a separate statement, citing the same case."
A Chinese court ruled that companies cannot terminate employees solely to replace them with artificial intelligence systems. The court found that a tech firm illegally fired an employee after he refused a demotion when his job was automated. The ruling emphasized that termination grounds must meet legal conditions and cannot be based on technological progress alone. This decision reflects the balancing act between advancing AI technology and maintaining stability in the labor market amid economic challenges.
Read at Fortune
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