Philippine bill would require 6 months’ notice before AI layoffs
- Senate Bill No. 2563 would require six months’ notice to DOLE before AI layoffs.
- Employers would have to prioritize reskilling before cutting jobs.
- Separation pay: at least two months’ salary, or two months per year of service.
- Sen. Erwin Tulfo filed the bill to amend the Labor Code.
CEBU, PHILIPPINES — A Philippine senator has filed a bill that would require employers to give the labor department at least six months’ notice before using artificial intelligence (AI) in ways that could lead to job cuts. Senate Bill No. 2563, filed by Sen. Erwin Tulfo, would amend the Labor Code to set strict guidelines for AI-related retrenchments.
The measure would also require companies to prioritize reskilling programs for their workforce before resorting to layoffs.
Conditions for a lawful AI layoff
Under the bill, employers planning to implement AI systems that could reduce their workforce must notify the Department of Labor and Employment (DOLE) at least six months in advance, The Freeman reported on Nov. 9. The AI integration must be a bona fide implementation, done in good faith for valid economic reasons such as cost reduction or improved efficiency.
Layoffs must be the last resort, and employees chosen for dismissal must be selected on fair and reasonable criteria. If retrenchment cannot be avoided, displaced workers would receive separation pay of at least two months’ salary or two months’ pay for every year of service, whichever is higher.
“As companies adopt AI, employees whose jobs become redundant risk losing not only their employment but also their means of supporting their families,” Tulfo said.
A push for proactive protection
Tulfo chairs the Senate Committee on Social Justice, Welfare and Rural Development. He framed the bill as a way to stop companies from treating AI as an automatic reason to cut staff.
“There must be a proactive effort to keep workers away from termination just because AI comes in,” he said. The bill has been filed but not yet passed.
Contact center jobs already falling
The proposal arrives as the Philippines records job losses in its outsourcing sector. Data from the Philippine Statistics Authority showed the country lost 289,000 contact center clerk jobs in the year to September, as we reported.
Outsourcing workers have drawn Senate attention before. In November 2025, Sen. Raffy Tulfo filed Senate Bill No. 1493, a welfare and job security measure for BPO employees.
What it means for employers
If passed, the bill would add a six-month planning window to any AI rollout that could cost jobs. Outsourcing firms adopting automation would need to plan reskilling and notice periods well ahead of deployment.
Employers that may face retrenchment decisions can review providers in OA’s list of the top 40 BPO companies in the Philippines.
Related news
- Philippines to reskill 10,000 BPO workers for AI · 15 Sep 2026
- Philippine labor market stays resilient amid the AI boom · 22 Sep 2026
- Philippine senator files bill to boost job security for BPO workers · 18 Nov 2025
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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