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Replacing Employees with AI is Illegal

01 May 2026, 10:49 am
A Chinese court has ruled that companies cannot fire employees simply because AI can do their jobs. The decision came after a labour dispute in which a court sided with an employee replaced by AI, stating that automation alone is not valid legal grounds for dismissal. The Chinese court has made it clear to the companies that adopting AI does not give employers a free pass to cut jobs or sidestep their obligations. This is not an isolated case of employees taking companies to court in China over AI-driven job losses.
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