Labour8/12/2026

Courts in China Ruled That Dismissing Employees Following the Adoption of Artificial Intelligence Is Unlawful

Courts and labor arbitration bodies in several Chinese cities ruled in favor of employees whose jobs had been transferred to artificial intelligence. In Guangzhou, the court determined that the dismissal of a graphic designer was unlawful and ordered a technology company to pay him additional compensation.

Key facts

•Court: The court of the city of Guangzhou, China
•Employee: Graphic designer Wei
•Initial payment: 41,000 yuan
•Additional payment under the judgment: 35,000 yuan
•Publication update date: August 12, 2026
•Case numbers and names of statutes were not specified

Dismissal of the Graphic Designer

A graphic designer surnamed Wei worked for more than three years at an unnamed technology company. After adopting artificial intelligence, the employer dismissed him on the grounds of a material change in objective circumstances and paid him 41,000 yuan, an amount originally estimated at $6,000.

What the Court Ruled

The court in Guangzhou upheld the lower tribunal’s decision that the dismissal was unlawful and ordered the company to pay Wei an additional 35,000 yuan. Judge Chen Xiyuan noted that employers may not impose the risks associated with technological upgrades on employees. According to the judgment, before dismissal, the company must offer an affected employee another position or training.

Additional Disputes in China

According to the source, similar decisions were also issued in other Chinese cities. In particular, a 35-year-old technology-sector employee in Hangzhou won a claim against his employer after being dismissed due to the adoption of artificial intelligence. Details of that decision, including the name of the court, the amount of the payments, and the case number, are not provided.

The Legal Basis and the Publication’s Limitations

The source reports that Chinese labor law provides employees with stronger protection than the laws of some other countries, but its implementation depends on effective enforcement. However, the publication did not specify particular statutory provisions, the names of statutes, case numbers, or the exact dates of the judgments.

What this means for you

These decisions apply in China and do not, in themselves, change Israeli labor law or bind Israeli courts. For employees in Israel, the publication points to an approach emerging outside Israel: the adoption of artificial intelligence does not always automatically justify dismissal, and an employer may be expected to consider transferring the employee to another position or providing retraining. However, an employee’s rights in Israel are determined under Israeli law and the specific circumstances of the dismissal.

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Case analysis based on court rulings