The case of Liu was recently selected by the Beijing Human Resources and Social Security Bureau as one of the landmark labor cases for 2025. This ruling is seen as reassuring news for office workers, establishing a crucial principle: technological advancement does not grant businesses the right to arbitrarily dismiss employees without proper arrangements.

Liu joined a technology company in Beijing in 7/2009, where he was responsible for manual map data collection. In early 2024, the company automated the process with AI, leading to the dissolution of his department. In 12/2024, the company unilaterally terminated his contract, citing "significant changes in objective circumstances". Refusing to accept this, Liu filed a complaint with the Beijing Labor Dispute Arbitration Commission.

During the hearing, the company argued that the adoption of AI constituted an unforeseen objective change, granting them the right to dismiss personnel under the law.

However, the Arbitration Commission rejected this argument. The body analyzed that "significant changes in objective circumstances", as defined by law, typically refer to natural disasters or changes in state policy – irresistible factors. In contrast, the implementation of AI was a proactive business decision aimed at optimizing efficiency. This represents a controllable management risk, not a force majeure event.

"The company used AI replacement as a reason to terminate the contract, which in essence, shifted the risk of technical upgrades onto the employees", the ruling stated.

The arbitration body emphasized that technological upgrades are an inevitable trend, but businesses have a responsibility to prioritize retraining, reassigning, or negotiating with long-term employees. Arbitrarily dismissing staff under the guise of "AI replacement" constitutes an abuse of the law.

Bao Nhien (According to CCTV, IT Home)