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Firing employees and replacing them with AI is illegal: China court tells companies

May 1, 2026
Source: indiatoday.in indiatoday.in
News Snapshot:
China has now made one thing clear to the companies in its countries: they cannot fire employees simply because AI can do their jobs. In a recent ruling, a Chinese court said replacing workers with artificial intelligence does not automatically justify the termination of the human workforce.The ruling was issued by the Hangzhou Intermediate People’s Court. It favoured an employee in a labour dispute, after an AI-related technology company replaced part of his work with large language models and subsequently dismissed him. The court published the case on Tuesday as part of a set of "typical examples of protecting the...
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