MANILA, Philippines — Sen. Erwin Tulfo has filed a measure seeking to protect Filipino workers from losing their jobs due to the adoption of artificial intelligence (AI) and automation.
Senate Bill 2563 seeks to introduce new provisions in the Labor Code of the Philippines governing employee termination resulting from the installation or implementation of AI technologies.
“As companies adopt AI, employees whose jobs become redundant risk losing not only their employment but also their means of supporting their families,” said Tulfo, chairman of the Senate Committee on Social Justice, Welfare and Rural Development.
“Technological progress is inevitable, but Filipino workers should not be left behind or made to bear its costs alone,” he added.
Tulfo’s bill aims to add a new article into the Labor Code of the Philippines which specifies conditions on the termination of an employee due to installation or implementation of AI technologies.
Among the conditions that must be met are the bona fide introduction or implementation of AI technologies or systems; good faith on the part of the employer in adopting such technologies; a valid and justifiable purpose, such as reducing costs, improving operational efficiency, or achieving other legitimate economic objectives; the absence of any reasonable alternative to implementing AI other than the consequent termination of affected employees; and the application of fair and reasonable criteria in determining which employees will be terminated.
The measure likewise provides a safeguard for those who will be justifiably terminated by entitling them to a separation pay equivalent to at least two months pay or to at least two months pay for every year of service, whichever is higher.
Should there be intended termination, the Senate Bill mandates the employers to notify the Department of Labor and Employment (DOLE) at least six months in advance.
“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 said.
