Companies planning to replace workers with artificial intelligence (AI) should first give employees six months’ notice and provide higher separation pay under a bill filed by Senator Erwin Tulfo.
Senate Bill No. 2563 seeks to protect Filipino workers from losing their jobs without sufficient safeguards as businesses increasingly turn to AI to improve their operations.
Tulfo said technological advances should not come at the expense of workers and their families.
“Technological progress is inevitable, but Filipino workers should not be left behind or made it bear its costs alone,” he said.
Under the proposed measure, employers may terminate workers because of AI implementation only under certain conditions, including when the technology is introduced in good faith and for legitimate economic reasons such as cost reduction and improved efficiency.
Employers must also show that there are no other available options and use fair and reasonable criteria in selecting employees who will be displaced.
The bill requires companies to notify the Department of Labor and Employment at least six months before implementing AI-related layoffs.
It also provides for separation pay equivalent to at least two months’ salary or two months’ salary for every year of service, whichever is higher.
Tulfo said employers should first explore retraining and reskilling existing employees 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 livelihood and lives of the employees’ families,” he said.IMT
