Senate bill seeks protection for workers from AI-driven layoffs
People walk past a banner with an AI (artificial intelligence) sign at the Frankfurt book fair on October 16, 2024, on the first day of the world’s biggest book fair in Frankfurt am Main, western Germany. Kirill Kudryavtsev, AFP/FileMANILA — Amid growing concerns over job displacement due to rapid technological advances, Senate Committee on Social Justice, Welfare, and Rural Development chairman Senator Erwin Tulfo has filed a measure seeking to protect Filipino employees from unfair layoffs caused by Artificial Intelligence (AI) automation.
Under Senate Bill No. 2563, Tulfo proposes introducing safeguards and clear conditions into the Labor Code of the Philippines to govern the termination of workers resulting from the implementation of AI technologies in the workplace.
“As companies adopt AI, employees whose jobs become redundant risk losing not only their employment but also their means of supporting their families,” Tulfo said in his explanatory note. “Technological progress is inevitable, but Filipino workers should not be left behind or made to bear its costs alone.”
Under the proposed legislation, employers can fire workers due to AI only under strict conditions.
Employers may only adopt AI if it is done in good faith for a valid economic purpose such as reducing costs or boosting efficiency and can prove that automation is their sole remaining option.
The bill also mandates fair and objective criteria when selecting employees for layoff.
To further protect affected workers, SB 2563 mandates that employers attempt to reskill existing personnel before resorting to termination.
“There must be a proactive effort to keep workers away from termination just because AI comes in. We are not only talking about careers here; we are concerned with the livelihood and lives of the employees’ families,” Tulfo emphasized.
Should layoffs become unavoidable, the bill requires employers to submit a written notification to the Department of Labor and Employment (DOLE) at least six months prior to the intended date of termination.
Displaced workers would also be entitled to enhanced separation pay equivalent to at least two months’ salary, or at least two months’ salary for every year of service, whichever is higher.