Employees Are Using AI to Challenge Workplace Decisions. Is Your Business Ready?

12 minutes ago
3 min read

Artificial intelligence (AI) is changing how employees understand and exercise their workplace rights.

Employees are increasingly using AI tools to review employment contracts, compare their pay against modern awards, draft workplace grievances and better understand the Fair Work Act 2009. At the same time, the Fair Work Commission (FWC) has introduced a new online application process for unfair dismissal and general protections dismissal claims, encouraging applicants to confirm they meet the legal requirements before lodging a claim.

While these developments don't change employers' legal obligations, they do raise the standard of workplace compliance. Employers should expect employees to ask more informed questions, identify potential issues earlier and seek clarification when something appears inconsistent.

The FWC’s new application process

The FWC has replaced downloadable application forms for most unfair dismissal and dismissal-related general protections claims with an online application process.

Applicants are guided through threshold questions before they can proceed, confirming matters such as eligibility, application timeframes and the legal basis of their claim. They must also acknowledge they are commencing legal proceedings, understand that application fees apply, verify the accuracy of the information provided and disclose whether AI was used to prepare their application.

These changes do not alter employees' rights under the Fair Work Act 2009, but they reinforce that applications should have a genuine legal basis before being lodged.

The FWC's updated application process changes how claims are submitted, not the legal test that applies. Employers should continue to focus on compliant workplace practices rather than assuming claims will reduce.

AI is making workplace issues easier to identify

AI is becoming a common starting point for employees seeking information about their workplace rights.

Employees are using AI to review contracts, interpret award provisions, analyse payslips, draft responses to disciplinary matters and better understand issues such as bullying, harassment and adverse action.

AI can be useful for identifying potential concerns, but it cannot assess all the facts, workplace context or the interaction between legislation, modern awards, enterprise agreements and contractual obligations. Human expertise remains essential when interpreting complex workplace relations issues.

AI doesn't create new workplace rights. It simply makes workplace information more accessible. If compliance gaps already exist, employees are now more likely to identify and question them.

Compliance has never been more important

As employees become better informed, employers should expect greater scrutiny of payroll practices, workplace decisions and employment documentation.

Regulators, including the Fair Work Ombudsman (FWO), continue to focus on payroll compliance, accurate record-keeping and employer obligations under workplace laws. The Fair Work Ombudsman has significant compliance and enforcement powers, including issuing Compliance Notices, Infringement Notices and commencing court proceedings where serious or repeated breaches are identified.

Maintaining compliance with the Fair Work Act 2009, the National Employment Standards (NES), applicable Modern Awards, enterprise agreements and record-keeping obligations is essential, not only to reduce legal risk, but also to demonstrate compliance if concerns are raised by an employee or regulator.

Four areas employers should review

Rather than focusing on AI itself, employers should review the systems that underpin workplace compliance.

Payroll compliance

Regular payroll audits help identify award interpretation issues, classification errors and underpayment risks before they become formal disputes.

Manager capability

Consistent decision-making, procedural fairness and effective communication remain critical to reducing workplace complaints. Discover training programs >

Policies and documentation

Employment contracts, workplace policies and procedures should accurately reflect current legislative obligations and be reviewed regularly.

Record keeping and investigations

Well-documented employment decisions and appropriately managed workplace investigations provide valuable evidence if matters are reviewed by the FWC or the FWO.

Best practice HR is your best defence

AI is changing how employees access workplace information, but it isn't changing the law.

Organisations with compliant payroll systems, capable managers, clear policies and sound record-keeping are well placed to respond when questions or complaints arise. Those same foundations also reduce the likelihood of workplace issues escalating into formal disputes or regulatory action.

Workplace Plus helps employers strengthen workplace compliance through payroll audits, HR consulting, workplace investigations, manager training and practical workplace relations advice. We support organisations to reduce risk and achieve their organisational goals while meeting their obligations under current employment laws.