AI Led Unemployment - Do Workers Have A Legal Recourse

Author: LawSphereX

Category: Technology, Cyber & Privacy

Published: 2026-08-23T17:45:25.752146+00:00

Updated: 2026-08-26T17:12:22.965+00:00

AI LED UNEMPLOYMENT - DO WORKERS HAVE A LEGAL

RECOURSE?

Kamini Pandey, O. P. Jindal Global University Introduction The utilization of artificial intelligence (AI) is effectuating a profound metamorphosis within the worldwide economy, and it is imperative to acknowledge that India is not exempt from this transformative phenomenon. In numerous sectors, employees are presently being substituted by technology driven by artificial intelligence, and it is anticipated that this pattern will gain momentum in the forthcoming years. The aforementioned matter gives rise to substantial apprehensions regarding the legal alternatives accessible to individuals who have been subjected to termination as a result of artificial intelligence.

Pursuant to a recent research study undertaken by the esteemed National Council of Applied Economic Research (NCAER), it has been postulated that artificial intelligence (AI) possesses the potentiality to supplant a staggering number of 7 million employment positions within the territorial boundaries of India, by the year 2030. The survey has also ascertained that individuals employed in industries characterized by repetitive tasks and low skill requirements, namely manufacturing, retail, and transportation, are particularly susceptible to the possibility of being substituted. The aforementioned concerns pertaining to the issue of unemployment resulting from the utilization of artificial intelligence (AI) have arisen due to substantial transformations within the labour market subsequent to the implementation of said AI technology within various work environments1.

The present document undertakes a comprehensive analysis of the legal and constitutional frameworks existing within the jurisdiction of India, with the primary objective of addressing the legitimate concerns arising from the displacement of employment caused by the advent of artificial intelligence. We shall thoroughly examine the existing legal frameworks, 1 Akanksha Jaiswal, C. Joe Arun & Arup Varma, 'Rebooting employees: upskilling for artificial intelligence in multinational corporations' (2022) 33 International Journal of Human Resource Management 1179-1208, DOI: 10. 1080/09585192. 2021. 1891114.

constitutional provisions (Article 21), Government scheme i. e MGNEREGA , and also provide some recommendations for this also. Constitutional Aspects and Right to Livelihood In reference to the Indian Constitution, it is noteworthy that the explicit inclusion of the 'right to work' as a fundamental right is absent. However, it is imperative to acknowledge the esteemed Supreme Court's pronouncement in the matter of Olga Tellis & Ors. V Bombay Municipal Corporation & Ors, wherein the 'right to work' was construed as an inherent facet of the overarching 'right to life,' as enshrined in Article 21. The aforementioned interpretation has had a substantial impact on the safeguarding of the fundamental right to livelihood and employment for the citizens of India.

The aforementioned situations have important repercussions for people who face the dangerous threat of losing their means of subsistence as a direct result of job terminations caused by artificial intelligence. It is important to note that, while the government is not compelled to make employment provisions, it is responsible for ensuring that any restriction on the right to engage in gainful employment adheres to a procedurally equitable and morally upright framework as prescribed by the law. It is thus argued that there is a chance of legal issues developing if employment losses caused by artificial intelligence are not handled in a way consistent with justice principles.

Nonetheless, it is necessary to clarify that the Constitution, via the Directive Principles of State Policy (DPSP), delineates the principles that serve as a compass for the state in areas of policy formation and governance. Although these principles are not enforceable in a court of law, they serve as guiding principles for the government's actions and policies. Although the article in issue does not specifically mention Article 21, its importance in the debate around the constitutional framework relative to the right to livelihood cannot be overstated2. Government Employment Schemes To adequately address concerns about the possible consequences of artificial intelligenceinduced joblessness and the basic right to food, it is necessary to conduct a thorough evaluation of governmental employment schemes.

When we talk about government schemes relating to 2 Nishtha Malik & Shalini Nath Tripathi, 'Impact of Artificial Intelligence on Employees working in Industry 4. 0 Led Organizations' (May 2021) International Journal of Manpower, DOI: 10. 1108/IJM-03-2021-0173, (accessed on 29October2023 )

unemployment Mahatma Gandhi National Rural Employee Guarantee Act (MGNREGA) is one of the largest work guarantee programmes in the world launched in 2005 by the Ministry of Rural development. The primary objective of the scheme is to guarantee 100 days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work. The aforementioned scheme provides people with gainful work opportunities in rural areas and significantly contributes to individuals' fundamental right to sustain their livelihoods. Despite the benefits of the scheme for rural unemployment, MGNREGA cannot be considered a long term answer, to the issue of unemployment caused by advancements in AI technology. The program is already experiencing limitations. Following are the reason given below:

1. Insufficient Emphasis, on Skill Enhancement; One significant drawback of MGNREGA is

its focus on job creation without incorporating training or skill development programs. In a changing employment landscape influenced by AI it is essential for workers to not secure employment but also acquire the necessary skills to thrive in emerging sectors. The absence of provisions for skill enhancement can impede workers ability to transition into sustainable and higher paying job opportunities.

2. Evolving Nature of Employment: The advent of AI technology is reshaping the nature of

work by automating manual tasks. Many jobs offered through MGNREGA predominantly involve unskilled labour, which happens to be the type of work that AI is replacing. Consequently it becomes imperative to empower workers with skills and education that align, with the evolving demands of the labour market.

3. Short-Term Solution: Although MGNREGA has been effective in generating short-term job

prospects in rural regions, it might not be the best option to deal with the long-term effects of job displacement brought on by AI. Although the program's 100 days of employment per financial year guarantee is advantageous, it could not be enough for those who experience extended unemployment as a result of AI-driven job market shifts. Legal Frameworks of India In light of the ever-changing environment of technology and work, there is a growing concern about the delicate interaction between existing labour laws and the repercussions of the emergence of Artificial Intelligence. The Indian labour laws, which have traditionally

functioned as a protective barrier for workers' rights, must now adapt and absorb the influence of artificial intelligence3 It is apparent that the labour laws in India were formulated without due consideration for the ramifications of artificial intelligence (AI). Acts such as the Minimum Wage Act, The Industrial Disputes Act, and The Payment of Wages Act were promulgated during a period wherein the presence of automation and artificial intelligence within the labour force was not yet established. The aforementioned discrepancy gives rise to apprehensions pertaining to the manner in which these statutes can be employed in circumstances wherein artificial intelligence precipitates employment displacement. The crux of the matter at hand pertains to the governmental obligations in relation to the amelioration of workforce alterations precipitated by artificial intelligence.

There exists a contentious discourse surrounding the question of whether it is incumbent upon the government to provide social safety nets and assistance to individuals within the workforce who experience displacement. While it is true that the Constitution indeed guarantees the right to work, it is important to note that said guarantee does not impose a legal obligation upon the government to ensure the availability of employment opportunities. The non-enforceable nature of the DPSP within the Constitution notwithstanding, it establishes the guiding principles by which the government is to diligently endeavour towards the realization of a society that is both just and equitable. In the present context, it is imperative to engage in a discourse pertaining to the Directive Principles of State Policy (DPSP) and the concomitant responsibility of the government.

At the moment, it is worth mentioning that India lacks any law, statutory rules, or regulations that limit the use of artificial intelligence (AI) in a particular way. It is critical to ensure the construction of a comprehensive regulatory framework for artificial intelligence (AI) in order to properly guide and steer the many players engaged in the appropriate and prudent management of AI within India's jurisdiction. The current proposal must include the necessary restrictions to ensure the alignment of artificial intelligence (AI) use with the basic values

3 'Legal and Human Rights Issues of AI: Gaps, challenges and vulnerabilities'

(Accessed on 29 October 2023)

entrenched in Article 21, notably the right to livelihood and work4. Recommendations The following ideas may help solve the challenges of AI-driven unemployment in India: • Restructure labour and employment regulations: To guarantee that workers are sufficiently shielded against AI-driven job displacement, the government should restructure the current labour and employment laws. This can include establishing new laws to address particular issues, such the difficulty of demonstrating AI-displacement, and explaining how current laws apply to AI-related job displacement. • Create laws tailored to AI: To guarantee that AI technologies be utilized in a responsible and ethical way, the government should create legislation specifically for AI. These rules need to include things like bias in AI systems, data privacy, and AI-led job displacement.

• Invest in worker retraining and reskilling: Programs to retrain and reskill workers who are replaced by AI should be funded by the government. Workers will benefit from this while switching to new vocations and employment. • Enhance social safety nets: In order to protect workers who are replaced by AI, the government should enhance social safety nets. This might include providing healthcare, unemployment compensation, and other types of support. Conclusion The acclaimed Indian government is required to take proper action to solve the complex legal, constitutional, and social issues that have developed as a consequence of the phenomena of AIdriven unemployment.

To accomplish the intended result, it is critical to change labour and employment regulations, implement legislation particularly designed for artificial intelligence, devote resources for worker retraining and reskilling, and reinforce social safety nets. Through the attentive execution of the aforementioned steps, the Indian government has the power to

4 Mini Raman and Angelina Talukdar, 'India: The Role Of Legislation In The Regulation Of Artificial

Intelligence (AI)', accessed by(29October2023)

give assurance that no worker will be abandoned and that all persons would take advantage of the prospects provided by artificial intelligence.