Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
1 
Twentieth Congress 
First Regular Session 
HOUSE BILL NO. ______ 
Introduced by Representative Lordan G. Suan 
AN ACT 
PROTECTING EMPLOYEES FROM TERMINATION OR LAYOFF DUE TO 
AUTOMATION BY ARTIFICIAL INTELLIGENCE, AMENDING FOR THE PURPOSE 
PRESIDENTIAL DECREE NO. 442, AS AMENDED AND RENUMBERED, 
OTHERWISE KNOWN AS THE “LABOR CODE OF THE PHILIPPINES” 
EXPLANATORYNOTE 
This bill seeks to protect employees from termination or layoff due to 
automation by artificial intelligence, amending for the purpose Presidential 
Decree No. 442, as amended and renumbered, otherwise known as the "Labor 
Code of the Philippines." 
In 2023, major technology companies in the United States, including 
Google and Microsoft, laid off approximately 191,000 employees. These 
layoffs were largely attributed to the increasing adoption of artificial 
intelligence (AI) in their operations. According to business tracker Crunch base, 
these trends will likely persist as the tech industry explores further AI 
applications in their operations, potentially affecting Filipino employees in the 
telecommunications sector. 
As AI technology increasingly permeates various sectors, it has the 
potential to revolutionize the workforce landscape. While AI can enhance 
productivity and reduce business costs, it also poses the risk of making certain 
jobs obsolete. This proposed legislation seeks to strike a balance between 
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2:33 pm
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harnessing the benefits of AI and mitigating its negative impacts on Filipino 
employees. 
The bill draws attention to commendable practices within the 
telecommunications sector. For instance, companies like Globe Telecom Inc. 
and Converge ICT Solutions Inc. have implemented strategies to avoid layoffs. 
These strategies include reassigning customer service agents to other roles or 
departments, providing retraining programs to equip employees with AI-
related skills, and fostering innovation and adaptability to meet new demands 
brought about by AI. Furthermore, PLDT Inc., the country's largest 
telecommunications employer, champions the responsible use of AI, 
advocating a balance between leveraging AI's benefits and maintaining 
corporate values and ethics. 
The bill introduces provisions to protect employees affected by AI-
related automation. These include fair compensation in the event of 
termination or layoffs, opportunities for retraining for different organizational 
roles, and the requirement for advance notice and consultation before any job 
terminations. These provisions are designed to ensure the smooth transition of 
employees in the face of AI-driven automation. 
The proposed amendments are not just a set of rules, but a call to action 
for all of us to make the integration of AI in the Philippines a collective 
endeavor and reaffirm the significance of Filipino employees’ well-being. This 
bill invites the legislative body, labor organizations, and stakeholders in the 
telecommunications industry to join hands and foster a shared commitment to 
the welfare of the Filipino workforce. 
This bill would mark a significant step towards a future where 
technological advancement and the preservation of labor rights advance hand 
in hand, guaranteeing that no Filipino employee is overlooked in the age of 
automation. This bill holds the promise of not only safeguarding jobs but also 
fostering more resilient and adaptable workforce, ready to embrace the 
opportunities presented by AI. 
In view of the foregoing, the immediate approval of this bill is earnestly 
sought. 
LORDANG.SUAN


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
1 
Twentieth Congress 
First Regular Session 
HOUSE BILL NO. ______ 
Introduced by Representative Lordan G. Suan 
AN ACT 
PROTECTING EMPLOYEES FROM TERMINATION OR LAYOFF DUE TO 
AUTOMATION BY ARTIFICIAL INTELLIGENCE, AMENDING FOR THE PURPOSE 
PRESIDENTIAL DECREE NO. 442, AS AMENDED AND RENUMBERED, 
OTHERWISE KNOWN AS THE “LABOR CODE OF THE PHILIPPINES” 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. A new article denominated as Article 298-A is inserted after Article 
1 
298 of Presidential Decree (PD) No. 442, as amended and renumbered, to read 
2 
as follows: 
3 
“ARTICLE 298-A. AUTOMATION BY ARTIFICIAL INTELLIGENCE.–THE 
4 
EMPLOYER 
MAY, 
LIKEWISE, 
TERMINATE 
OR 
LAY-OFF 
THE 
5 
EMPLOYMENT OF ANY EMPLOYEE DUE TO THE INSTALLATION OR 
6 
IMPLEMENTATION OF ARTIFICIAL INTELLIGENCE (AI) TECHNOLOGIES OR 
7 
SYSTEMS, RENDERING THE EMPLOYEE’S POSITION REDUNDANT, AND 
8 
AFTER COMPLYING WITH THE FOLLOWING STANDARDS: 
9 
10 
(A)
THERE MUST BE A BONAFIDE INTRODUCTION OR
11 
IMPLEMENTATION OF AI TECHNOLOGIES OR SYSTEMS; 
12 
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(B) THE INTRODUCTION OR IMPLEMENTATION MUST BE 
1 
UNDERTAKEN IN GOOD FAITH; 
2 
(C) THE PURPOSE FOR 
SUCH 
INTRODUCTION 
OR 
3 
IMPLEMENTATION MUST BE VALID SUCH AS TO SAVE ON COST, 
4 
ENHANCE EFFICIENCY AND OTHER JUSTIFIABLE ECONOMIC 
5 
REASONS; 
6 
(D) THERE IS NO OTHER OPTION AVAILABLE TO THE EMPLOYER 
7 
THAN THE INTRODUCTION OR IMPLEMENTATION OF AI 
8 
TECHNOLOGIES 
OR 
SYSTEMS 
AND 
THE 
CONSEQUENT 
9 
TERMINATION OF EMPLOYMENT 
OF 
THOSE 
10 
AFFECTEDTHEREBY; AND 
11 
(E) THERE MUST BE FAIR AND REASONABLE CRITERIA IN 
12 
SELECTING EMPLOYEES TO BE TERMINATED. 
13 
 
THE EMPLOYEE AFFECTED SHALL BE ENTITLED TO 
14 
SEPARATION PAY EQUIVALENT TO AT LEAST TWO (2) MONTHS 
15 
PAY OR TO ATLEAST TWO (2) MONTHS PAY FOR EVERY YEAR OF 
16 
SERVICE, WHICHEVER IS HIGHER. A FRACTION OF AT LEAST SIX 
17 
(6) MONTHS SHALL BE CONSIDERED ONE (1) WHOLE YEAR. THIS 
18 
IS WITHOUT PREJUDICE TO ANY HIGHER BENEFITS THAT MAYBE 
19 
PROVIDED BY ANY EXISTING LAW, COMPANY POLICY, COLLECTIVE 
20 
BARGAINING AGREEMENT, OR ANY OTHER APPLICABLE RULE OR 
21 
REGULATION.” 
22 
 
“FOR PURPOSES OF THIS ACT, THE TERM ARTIFICIAL 
23 
INTELLIGENCE REFERS TO TECHNOLOGIES OR SYSTEMS THAT 
24 
ENABLE COMPUTERS AND MACHINES TO EMULATE HUMAN 
25 
INTELLIGENCE AND PROBLEM – SOLVING CAPABILITIES.” 
26 
SEC. 2. A new article denominated as Article 298 – B is inserted after the new 
27 
Article 298-A of the same Presidential Decree to read as follows: 
28 
“ARTICLE 298-B. RESKILLING AND TRANSITION PROGRAM. – THE 
29 
EMPLOYERS, 
AFTER 
INSTALLING 
OR 
IMPLEMENTING 
AI 
30 
TECHNOLOGY OR SYSTEM S THAT MAY RESULT IN TERMINATION 
31 
OR LAY OFF OF EMPLOYEES, SHALL: 
32 
 
A. PROVIDE OR FACILITATE RESKILLING PROGRAMS TO 
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3 
 
 
HELP EMPLOYEES TRANSITION TO NEW ROLES WITHIN THE 
1 
FIELD; 
2 
 
B. OFFER ALTERNATIVE EMPLOYMENT OPPORTUNITIES 
3 
WITHIN THE ORGANIZATION, WHERE POSSIBLE; OR 
4 
 
C. DEVELOP AND IMPLEMENT A TRANSITION PROGRAM 
5 
FOR AFFECTED EMPLOYEES, IN COORDINATION WITH THE 
6 
DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE).” 
7 
SEC. 3. A new article denominated as Article 298 –C is inserted after the new 
8 
Article 298-B of the same Presidential Decree to read as follows: 
9 
 
10 
 
 “ARTICLE 298-C. 
NOTIFICATION 
AND 
CONSULTATION.–
11 
EMPLOYERS SHALL NOTIFY THE DOLE AND THE EMPLOYEES' 
12 
REPRESENTATIVES AT LEAST SIX (6) MONTHS IN ADVANCE OF 
13 
ANY INTENDED 
TERMINATION 
OR 
LAYOFF 
DUE TO AI 
14 
AUTOMATION, AND CONSULT WITH THE EMPLOYEES OR THEIR 
15 
REPRESENTATIVES TO EXPLORE ALL POSSIBLE MEASURES TO 
16 
AVOID OR MINIMIZE THE TERMINATIONS OR LAYOFFS.” 
17 
SEC. 4.This Act shall take effect fifteen (15) days after its publication in the 
18 
Official Gazette or in a newspaper of general circulation. 
19 
 
20 
 
21 
Approved, 
22