Can a company use AI to determine who should be fired?

A growing number of companies in Canada are using artificial intelligence (AI) to fire employees, according to a new poll.

Capterra, a software company based in Virginia, shared results from a survey that looked at how businesses are using AI. The survey was taken by 1,002 Canadians aged 18 to 65. They worked in part- and full-time roles for small to mid-sized employers.

Some key takeaways from the survey include:

• One in five businesses are using AI in the their HR department
• Eight per cent said their employer is using AI when deciding to fire staff
• More than half of workers are not happy with allowing AI to make the call on layoffs
• 30 per cent of respondents would feel “very uncomfortable” if AI chose which employees to lay off
• 75 per cent of employees said they could not trust AI to fire someone
• 35 per cent said if AI was in charge of firing employees, they would alter their workplace behaviour, including developing new skills, becoming more involved in projects, and improving key areas of performance

Can an employer use AI to decide who to fire?

Yes. In Canada, employers can use AI software to decide which employees to let go.

Generally speaking, a company can fire an employee at any time and for any reason. This is called a termination without cause.

When this type of termination, or layoff, is triggered, the employer must provide the outgoing employee with a full severance package – as much as 24 months’ pay.

Failure to give an employee proper severance pay when they are fired can result in a wrongful dismissal claim.

Employers can’t fire staff for discriminatory reasons in Canada. Job loss due to age, gender, orientation, religion, or race is illegal.

If AI software used for firing decisions relies on these or other discriminatory factors, it could breach human rights laws and lead to legal action.

LEARN MORE
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• Layoffs in Canada

Fired by AI?

The experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized employees across Ontario, Alberta, and B.C. get fair severance pay after losing their jobs.

If you are fired by or replaced with AI software, or are struggling with an employment issue, contact us now or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.