Amid news of massive layoffs due to Artificial Intelligence (AI) taking over operations of companies, Senate Social Justice, Welfare, and Rural Development Chairman Senator Erwin Tulfo has filed Senate Bill No. 2563 providing safeguards for employees displaced by AI automation.
“As companies adopt AI, employees whose jobs become redundant risk losing not only their employment but also their means of supporting their families,” Tulfo wrote.
“Technological progress is inevitable, but Filipino workers should not be left behind or made it bear its costs alone.”
“Technological progress is inevitable, but Filipino workers should not be left behind or made it bear its costs alone,” the legislator added.
The lawmaker’s bill aims to add a new article into the Labor Code of the Philippines which specifies conditions when an employee can be terminated due to installation or implementation of AI technologies.
Among the conditions are:
– There must be a bona fide introduction of implementation of AI technologies or systems;
– AI implementations must be undertaken in good faith;
– The purpose for AI introduction or implementation is valid to save cost, enhance efficiency and other justifiable economic reasons;
– No other option available for the employer other than to introduce or implement AI technologies and the consequent termination of employee; and
– There must be fair and reasonable criteria in selecting employees to be terminated.
“Those who will be justifiably terminated should be entitled to a separation pay equivalent to at least two months pay or to at least two months pay for every year of service, whichever is higher.”
The said measure likewise provides a safeguard for those who will be justifiably terminated by entitling them to a separation pay equivalent to at least two months pay or to at least two months pay for every year of service, whichever is higher.
Should there be intended termination, the Senate Bill mandates the employers to notify the Department of Labor and Employment (DOLE) at least six months in advance.
And in the event that there is an introduction or implementation of AI systems which are seen to cause termination, The senator’s bill ensures that employers would reskill the current employees first before resorting to removal.
“There must be a proactive effort to keep workers away from termination just because AI comes in,” he stressed.
“We are not only talking about careers here, we are concerned with livelihood and lives of the employees’ families,” Tulfo concluded.
