A new bill proposed in the Philippine Senate seeks to give workers protection before companies replace them with artificial intelligence. Senate Bill No. 2563, filed by Sen. Erwin Tulfo, proposes adding a new article to the Labor Code that would set rules for terminating employees because of AI adoption.
If passed, the bill would require employers to notify the Department of Labor and Employment at least six months before any planned termination tied to AI. Companies would also have to retrain their existing staff before turning to layoffs.
The proposal puts the burden on employers to prove that their use of AI is genuine, carried out in good faith, and backed by cost savings, efficiency gains, or other valid economic grounds. Employers must also demonstrate that adopting AI and cutting jobs is the only remaining option, and that the workers chosen for layoff were picked using fair and reasonable standards.
Workers who are let go under these conditions would be entitled to separation pay of at least two months’ wages, or two months’ pay for every year of service, whichever is higher.
Tulfo said employees whose roles become redundant face the loss of both their jobs and their ability to support their families. He added that there must be a deliberate effort to keep workers from being terminated simply because AI enters the workplace.