Court sides with senior tech worker whose role was targeted for automation and was ultimately fired
A Chinese court has ruled that employers cannot demote or dismiss staff solely to replace them with artificial intelligence.
The Hangzhou Intermediate People’s Court sided with a senior tech worker whose role was targeted for automation and who was ultimately fired after refusing a lower‑paid transfer, according to Global News.
The judgment said “the development of artificial intelligence technology is intended to liberate labour, promote employment, and benefit people’s livelihoods,” according to the report.
Building 'AI-ready' future
The decision comes as employers worldwide deploy AI to cut costs and streamline operations, often with implications for headcount. In North America, companies such as Block have openly cited AI as a factor behind significant layoffs, part of an automation trend that has moved from manual to white‑collar work, experts told Global News.
Earlier this year, in a letter to shareholders, Block CEO Jack Dorsey announced the company is cutting nearly half of its global workforce, shrinking from more than 10,000 employees to just under 6,000.
Economist Moshe Lander of Concordia University told Global News the Chinese ruling does not stop the long‑term advance of AI, but it highlights a need for rules.
“If you’re trying to slow down the inevitable, you’re doomed to fail,” he said, arguing the real focus should be on “protections of your income or protections of your ability to live” and work alongside AI, rather than guarantees of a specific job."
Despite that, experts doubt Canada will copy China’s approach. McGill University lecturer Simon Blanchette told Global News that Canada’s democratic, federal system would make a sweeping ban on AI‑based layoffs difficult to legislate and enforce, with provinces, industries and unions all involved. He suggested “other ways we could be exploring to help workers more, and have a more ‘AI‑ready’ future,” including broad reskilling efforts.
Recently, IgniteTech, decided to replace nearly 80% of its workforce after a company‑wide push to adopt AI.
Updated rules around AI
The Chinese court also stressed employee responsibilities, saying workers should “continuously update and improve their professional skills through continuous learning” and adapt proactively to AI‑driven change, according to Global News.
Lander told the publication that social safety nets such as employment insurance (EI) should be modernised to reflect industries that will be hit hardest by AI, warning that it is “a lot more than protecting workers’ rights” and requires deciding “which workers’ rights actually need protecting.”
Ottawa has promised a new federal AI strategy that will address labour‑market impacts, but Artificial Intelligence Minister Evan Solomon has repeatedly pushed back the release date, Global News reported.
Below is a list of Canadian‑headquartered employers whose recent mass layoffs were tied to AI:
