Source: Gizmodo

A Chinese worker was terminated after refusing a demotion prompted by the employer’s introduction of automation in his job role. The Hangzhou Intermediate People’s Court ruled that this termination was not permitted, emphasizing the principle that “Employers are prohibited from shifting operating costs to employees.” The ruling arose from a dispute where the employee’s refusal to accept the demotion led to dismissal, which the court did not uphold as lawful.

The decision was part of a broader collection of AI-related rulings issued by the Hangzhou court, as noted by Bloomberg. The court statement prohibits using technological changes as justification for unilaterally reducing salaries or ending employment contracts, reflecting judicial examination of how automation impacts employment relationships within Chinese labor law frameworks.