AI layoffs bill: Erwin Tulfo seeks six-month notice, double severance
By Pooja MehraIndustry Trends Analyst, Peepals Tech
File photo: PNA photo by Valerie Escalera (Public domain), via Wikimedia Commons
Philippine Senate Bill No. 2563, reported on 9 November 2026, would require six months' notice, double separation pay and reskilling before AI-related layoffs.
What Happened
Philippine Senator Erwin Tulfo has filed Senate Bill No. 2563, which would make companies give workers six months' notice and double separation pay before laying them off because of artificial intelligence (AI). The bill, reported on Monday, 9 November 2026, would also require employers to offer reskilling or other jobs first. It has been filed in the Senate and is not yet law.
Key Facts
- Bill: Senate Bill No. 2563, filed by Senator Erwin Tulfo in the Senate of the Philippines and reported on 9 November 2026.
- Notice: employers would have to inform the Department of Labor and Employment (DOLE) and employee representatives at least six months before an AI-related layoff. The existing Labor Code requires one month for such terminations.
- Separation pay: at least two months' pay, or two months' pay for every year of service, whichever is higher. The current minimum for redundancy or labour-saving terminations is one month's pay, or one month per year of service.
- Reskilling: employers adopting AI that is likely to cost jobs would have to provide or arrange training for new roles in the same field, offer other positions in the company where possible, or design a transition programme with DOLE.
- Conditions: an AI-related layoff would be allowed only if the employer shows the AI is really being put in place, was adopted in good faith for a legitimate purpose such as cutting costs, that there was no other option, and that workers were chosen by fair criteria.
- Status: the bill still has to pass Senate committee hearings and both houses of Congress before it can become law.
Why It Matters
Most labour laws were written before AI could take over office tasks such as answering customer queries, processing documents or writing basic code. When a company replaces staff with software today, the layoff is usually treated like any other redundancy, with the same notice period and severance. Tulfo's bill treats AI-driven job losses as a separate category and raises the cost and the warning time for employers.
The bill reflects a wider question governments are facing: how to let companies adopt new technology while giving workers time to adjust. A six-month notice period gives employees a window to train for a new role or look for another job, and the reskilling duty puts part of that burden on the employer rather than the worker alone.
For young professionals in technology and services jobs, including in India, the debate is worth following. The kinds of roles most often linked to AI layoffs, such as customer support, back-office processing and entry-level programming, are common first jobs for graduates in both countries. Rules like this one, if adopted, could change how quickly companies replace those roles and whether they must pay to retrain staff.
The proposal also faces open questions in the legislative process, such as how a company would prove that a layoff is caused by AI rather than by other business reasons, and how DOLE would check the five conditions. Those details will be argued in committee.
Peepals calculation: For a worker with five years of service, the current minimum for a labour-saving layoff is five months' pay (1 month × 5 years). Under the bill, it would be ten months' pay (2 months × 5 years), double the amount. The notice period would rise from one month to six, six times as long. Our calculation from the reported figures.
| Rule | Current Labor Code | Senate Bill No. 2563 |
|---|---|---|
| Notice before layoff | One month | At least six months |
| Separation pay | One month, or one month per year of service | Two months, or two months per year of service |
| Reskilling or other job | Not required | Required where possible |
Impact
Short-term: The bill goes to Senate committees for hearings, where employers, unions and the labour department are likely to give their views. Nothing changes for workers or companies until it becomes law.
Long-term: If passed, companies in the Philippines would face higher costs and longer timelines for AI-related job cuts, and would need formal reskilling or transition plans. It could also serve as a model that other countries study.
Who is affected: Workers in the Philippines whose jobs could be automated, employers planning to adopt AI, the Department of Labor and Employment, and young job-seekers watching how countries regulate AI's effect on work.
Key Takeaway
Senate Bill No. 2563 in the Philippines would require six months' notice, double separation pay and reskilling before AI-related layoffs, but it is only a filed bill and must pass Congress to take effect.
Questions and Answers
What is Erwin Tulfo's AI layoffs bill?
Senate Bill No. 2563, filed by Philippine Senator Erwin Tulfo, would require employers to give six months' notice, pay at least double the usual separation pay and offer reskilling or other jobs before laying off workers because of AI.
How much separation pay would workers get under the bill?
At least two months' pay, or two months' pay for each year of service, whichever is higher. The current minimum for such layoffs is one month's pay, or one month per year of service.
Is the AI layoffs bill already law in the Philippines?
No. It has been filed in the Senate and must go through committee hearings and pass both houses of Congress before it can become law.
What must an employer prove before an AI-related layoff under the bill?
That the AI is really being put in place, was adopted in good faith for a legitimate purpose such as cutting costs, that no other option exists, and that the workers to be laid off were chosen by fair and reasonable criteria.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Pooja Mehra, Industry Trends AnalystCovers Industry News & Trends and more for Peepals Tech. All stories by Pooja Mehra
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Pooja Mehra is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
