Hangzhou courts rule a tech firm unlawfully dismissed a quality-inspection supervisor after it cited AI replacement and he refused a 40% pay cut
A technology company in Hangzhou, China, employed a worker to check the quality of answers produced by an AI large language model, at 25,000 yuan a month. In January 2025, citing the impact of AI technology on his project, it proposed moving him to an ordinary operations post at 15,000 yuan a month; when he did not agree, it notified him that his contract was terminated, according to a typical case released by the Hangzhou Intermediate People's Court on 28 April 2026 and reported by Hangzhou media and China National Radio. China National Radio, citing CCTV News, reports that the company told him only at arbitration that after a technical upgrade AI could do his inspection work. A labour arbitration panel and then two levels of court in Hangzhou found the termination unlawful and ordered compensation of more than 260,000 yuan. The court said that introducing AI to stay competitive is not in itself the kind of major change in objective circumstances that makes an employment contract impossible to perform, and that the pay-cut offer was not a reasonable proposal. The worker told CCTV that he had not found a suitable new job since the termination.
AI involvement reported · Causal attribution supported · 7 sources, 1 underlying account · Added 16/10/2026