Automation-Induced Redundancy: Does Chapter V-B of the Industrial Disputes Act Provide Adequate Safeguards in the Era of Generative AI?

ABSTRACT
The rapid development of Artificial Intelligence, especially Generative AI, is
really changing how we work and what employment looks like. While these AI
technologies can boost productivity and enhance decision-making, they might
also lessen the need for human workers in some roles, leading to layoffs and job
losses. This shift has sparked worries about job security, potential layoffs, the
need for reskilling, and whether current labor laws are adequate.
This research examines whether the safeguards provide under Chapter V-B of the
Industrial Disputes Act from 1947 are enough to protect employees whose jobs
are impacted by automation and tech advancements. It zooms in on key legal
protections related to layoffs, notice periods, compensation, required government
approvals, and other employee safeguards. Additionally, it looks at the challenges
posed by Generative AI, especially how tech changes can shift job roles, cut down
the demand for certain skills, or even render some positions obsolete.
The study takes a doctrinal and qualitative approach, pulling from a variety of
sources like legislation, court rulings, academic research, government documents,
and insights into AI, automation, and employment. It also examines the Industrial
Relations Code of 2020 to grasp how India's labor law framework is evolving in
light of technology.
The findings indicate that while current labor laws do offer crucial protections
during layoffs, they might not fully tackle the issues brought on by AI-related job
changes. There's a strong suggestion that more focus is needed on reskilling,
redeploying, transparency, and providing support during transitions before any
layoffs occur. Therefore, the study advocates for a more employee-centered
approach, encouraging employers to prioritize reskilling and redeployment ahead
of layoffs, while also balancing tech advancements, business demands, and
employee rights.