New Fair Work Commission requirements governing the use of artificial intelligence have taken effect, as employers face growing pressure to manage workplace disputes and dismissal claims.
Leanne Clavan, Director of Operations at We Are HR, says AI is making it easier for employees to challenge workplace decisions, with more workers willing to take their grievances directly to the Commission.
“What used to be perceived as a difficult process is now a very easy one, and so many employees have a ‘why not, nothing to lose’ attitude to lodging claims.”
The new generative AI requirements, which took effect on 20 October 2026, apply to parties involved in Commission proceedings, including employers.
According to Leanne, the requirements cover three key areas: disclosing when generative AI has been used and how, having a person check the accuracy and relevance of AI-assisted material, and ensuring witness statements reflect the witness’s own words and knowledge rather than AI-generated factual content.
Failing to comply can have consequences, including documents being given less weight or disregarded, potential costs orders and, in some circumstances, dismissal of a case.
The changes come as AI tools make it easier for employees to prepare formal complaints, reference employment legislation and navigate the claims process.
Leanne says while workplace disputes are not necessarily increasing, employees are becoming more willing to pursue claims. For small business owners without dedicated HR support, responding to what appear to be legally sophisticated claims can involve considerable time, expense and stress.
She says AI-generated responses can also lack important context, particularly the employer’s side of the story, while businesses using the technology themselves face risks around accuracy and confidentiality.
“But having tried it myself to see what it does, I can say first hand that I found inaccuracies and misinterpretation of information throughout, so the risk is certainly there.”
What employers need to know
Beyond the technology itself, Leanne believes one of the biggest risks for businesses remains the way performance issues and terminations are handled.
“In my experience the ‘rush’ to terminate is the biggest mistake.”
She says employers can have legitimate reasons for dismissing an employee but still face compensation claims if they fail to follow a fair and reasonable process. That does not mean performance management needs to drag on indefinitely, but businesses should be able to demonstrate how decisions were reached.
For businesses across the City of Moreton Bay, particularly smaller employers without internal HR expertise, keeping clear records of performance discussions, warnings, key conversations and decisions can make a significant difference if a claim arises.
Leanne says seeking advice early, rather than waiting until a workplace issue escalates, is one of the most effective ways to reduce that exposure.
“I always recommend early advice – a short phone call to HR early in the process can be the difference between a good exit and a costly claim.”
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