Firing an employee to replace them with AI is illegal in China

In a landmark decision that redefines the boundaries between technological progress and social protection, China has just outlawed the practice of firing an employee solely to replace them with artificial intelligence.

This new regulation reflects Beijing’s desire to stabilize the job market in the face of rampant automation that threatens millions of white-collar and skilled worker positions.

The government is now requiring companies to demonstrate that layoffs are due to genuine economic reasons or professional misconduct, and not simply to the optimization of profitability by algorithms.

Chinese authorities fear that a massive and uncontrolled replacement of the human workforce could trigger a major social crisis, eroding domestic consumption and the social contract.

To complement this measure, the law provides for record fines for violators and requires technology companies to fund retraining programs for employees whose tasks are automated.