System to shield workers from AI layoffs pushed

CEBU, Philippines — Amid growing concerns over automation-driven layoffs, Sen. Erwin Tulfo has filed a bill seeking to amend the Labor Code to protect Filipino workers from being displaced by Artificial Intelligence (AI).

Senate Bill No. 2563 establishes strict guidelines for AI-related retrenchments, mandating companies to prioritize reskilling programs for their workforce before resorting to job cuts.

“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.

 Under the proposed measure, employers intending to implement AI systems that could lead to workforce reductions must notify the Department of Labor and Employment (DOLE) at least six months in advance.

 The bill sets specific conditions for lawful termination due to automation. The AI integration must be a bona fide implementation done in good faith for valid economic reasons, such as cost reduction or enhanced efficiency.

 Furthermore, layoffs must be the absolute last resort, and the selection of employees to be dismissed must follow fair and reasonable criteria.

 Should retrenchment be unavoidable, displaced workers would be entitled to separation pay equivalent to at least two months' salary 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," Tulfo, who chairs the Senate Committee on Social Justice, Welfare, and Rural Development, stated.

"We are not only talking about careers here, we are concerned with livelihood and lives of the employees’ families,” he added