MANILA, Philippines — Senator Erwin Tulfo has filed a measure seeking to safeguard Filipino workers against displacement and mass layoffs driven by the rapid adoption of artificial intelligence (AI) automation in the corporate sector.
Under Senate Bill No. 2563, the proposed legislation seeks to amend the Labor Code of the Philippines by introducing strict legal parameters and mandatory employee protections before companies can terminate workers due to technological redundancy.
In the bill’s explanatory note, Tulfo stressed that while technological evolution is inevitable, employees should not be left vulnerable to its financial consequences.
“As companies adopt AI, employees whose jobs become redundant risk losing not only their employment but also their means of supporting their families,” Tulfo said.
“Technological progress is inevitable, but Filipino workers should not be left behind or made it bear its costs alone,” he added.
PROPOSED LABOR CODE SAFEGUARDS
SB No. 2563 outlines strict compliance conditions that employers must fulfill before implementing AI systems that result in job cuts:
- Bona Fide Implementation: The adoption of AI technologies must be genuine and undertaken in good faith.
- Justifiable Economic Reason: The transition must serve a valid operational purpose, such as reducing overhead costs or enhancing efficiency.
- Lack of Alternatives: Employers must prove that no other viable options exist apart from introducing AI and subsequently terminating personnel.
- Fair Criteria: Companies must enforce fair and reasonable standards when selecting employees affected by redundancy.
Crucially, the measure mandates that employers must prioritize reskilling and upskilling current employees before resorting to termination. Furthermore, companies must serve a formal notice to the Department of Labor and Employment (DOLE) at least six months prior to any planned displacement.
For workers who are ultimately separated under justifiable AI-driven restructuring, the bill mandates a separation package equivalent to at least two months’ pay or two months’ pay for every year of service, whichever is higher.
“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,” Tulfo emphasized.