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Chinese court sets precedent: Workers cannot be fired to be replaced by AI

2026-05-02 17:46:46Lifestyle SHKRUAR NGA REDAKSIA VOX
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A court in China has ruled in favor of an employee in a labor dispute caused by his replacement by Artificial Intelligence, in a decision seen as an important precedent for protecting workers' rights in the age of automation.

The case was published by the People's Court in Hangzhou, one of the country's leading centers of Artificial Intelligence development.

The employee, identified only by the surname Zhou, was hired in 2022 as a quality control supervisor at a technology company, with a monthly salary of 25,000 yuan ($3,600).

His task included verifying responses to large language models and filtering out illegal or privacy-invading content.

But later, the company replaced his functions with Artificial Intelligence models and offered him a new role with a reduced salary of 15,000 yuan per month. After Zhou refused to accept the reduction in position and salary, the company terminated his contract, citing organizational restructuring and staff reductions.

The court ruled that replacing an employee with an AI does not automatically constitute a “major change of objective circumstances” under Chinese labor law and that the company had not proven the real impossibility of continuing the contract.

The court also deemed the offer of a transfer to a lower role with lower pay as unreasonable, declaring the dismissal unlawful.

Legal experts consider the decision a strong signal to companies adopting AI: the benefits of automation do not exempt them from social and legal responsibilities to employees.

The case comes at a time when China's Artificial Intelligence industry has surpassed the value of 1.2 trillion yuan and is expected to expand significantly by 2030, adding to debates over the technology's impact on the job market.

The decision reinforces a principle that is becoming increasingly important globally: the costs of technological transformation cannot fall solely on workers.


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