Bill guards vs AI-linked job cuts – BusinessWorld Online

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A SENATOR has filed a bill seeking to protect Filipino workers from being laid off as companies adopt artificial intelligence (AI), proposing safeguards against job displacement caused by automation.

In a statement, Senator Erwin T. Tulfo said Senate Bill No. 2563 will amend the Labor Code of the Philippines by setting conditions employers must meet before dismissing workers due to AI adoption.

“Companies inevitably need to adopt AI, but the jobs of our fellow citizens shouldn’t just be compromised like that, because their income is what sustains their families,” Mr. Tulfo said in Filipino.

Under the proposed measure, employers must prove that AI is genuinely being used and its adoption is undertaken in good faith and serves a legitimate business purpose, such as reducing costs or improving services.

They must also establish that no reasonable alternative to workforce reduction is available and that the layoffs are fair and reasonable.

Workers dismissed under these conditions would be entitled to separation pay equivalent to at least two months’ salary or two months’ salary for every year of service, whichever is higher.

The bill also requires employers to notify the Department of Labor and Employment at least six months before implementing AI-related layoffs.

Employers must likewise prioritize retraining or reskilling existing workers who may be affected by the introduction of AI systems before resorting to job cuts.

Mr. Tulfo said technological progress should not leave Filipino workers and their families bearing the economic costs of automation. — Pexcel John Bacon

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