Tip of the Week: Redundancies due to AI? Proceed with the usual caution.
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As AI tools become increasingly embedded into the workplace - from the finance sector to customer support – employers are increasingly asking: Can I effect redundancies as a result of a new AI tool we have recently introduced?
The short answer: Yes - but proceed with caution.
In a recent Workplace Relations Commission case (ADJ-00054525), a worker with a social media company brought a claim for unfair dismissal after her role was made redundant following the decision to use AI to carry out monitoring work previously done by her. The Complainant failed in that claim.
This supports the position that AI tools can lead to employees losing their jobs on redundancy grounds, provided the situation meets the usual relevant redundancy criteria and the process followed is procedurally fair.
The learnings from this case (and other redundancy case law) can be broadly summarised as follows:
- AI-driven restructuring / redundancies are possible and legally sound.
- Employers should document the rationale for any role eliminations.
- Employers should ensure objective and fair selection criteria are used.
- Employers should follow a genuine, fair and transparent consultation process, during which alternatives to redundancy should be considered.
AI may be the future, but redundancy law hasn’t changed. If you are an employer considering workforce changes due to automation, you should seek legal advice early to avoid costly disputes.
The above is for general guidance only and is not intended as professional advice. Advice should always be taken before acting on any of the issues identified.
Please contact Greta Siskauskaite, Barry Walsh or Paul Bruun-Nielsen should you require specific legal advice on this area or indeed any employment law issues.
Link: http://bit.ly/47PsMwN