A Chinese court has ruled that companies cannot fire employees solely to replace them with artificial intelligence systems, in a decision that highlights Beijing’s attempt to balance rapid technological adoption with labor market stability.
The Hangzhou Intermediate People’s Court found that terminating a worker’s contract because their role had been automated constitutes an unlawful dismissal.
The court held that employers must provide legitimate and legally recognized reasons for termination, and that automation alone does not meet that threshold.
The ruling reflects an effort to draw clearer legal boundaries as businesses accelerate digital transformation.
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