Fair Work claims rise with AI use - fair work
Fair Work claims rise with AI use

Fair Work claims have surged, with AI use being a key driver, according to Gazelle Kalk from Peninsula Australia. A growing number of workplace conversations are starting with AI, from performance management and complaints to redundancies and dismissals.

Employees are increasingly turning to artificial intelligence to understand their rights, weigh up employer decisions, and get guidance on tricky employment matters before speaking to a manager or HR.

Surge in Fair Work Claims

The shift is already showing up in the numbers, with total lodgements running 40% above the recent three-year average. Unfair dismissal applications are up 41%, while dismissal-related general protections claims have risen 62%, and other general protections disputes have jumped 135%.

The Fair Work Commission has flagged plans to introduce disclosure requirements for parties using generative AI when preparing applications and documents, in response to the growing use of AI by applicants.

Workplace Impact of AI

Gazelle Kalk, Associate Director – Content and Training at Peninsula Australia, said the workplace impact of AI goes well beyond automation debates. The conversation around AI has largely focused on whether technology will replace jobs, but a more immediate shift is already underway.

“The conversation around AI has largely focused on whether technology will replace jobs. A more immediate shift is already underway: employees are increasingly turning to AI to understand workplace rights, assess employer decisions and seek guidance before speaking with their manager or HR team,” Kalk said.

Many employers have workplace policies for AI, but far fewer have considered what happens when employees start using AI as a workplace adviser. Today, every employee effectively has access to an on-demand workplace adviser in their pocket, according to Kalk.

Related: Panzoe Unifies Work and Personal Life

Pressure on Businesses

The trend puts pressure on businesses to tighten up how decisions are made and explained. The Fair Work Commission has already observed increasing use of AI-generated material in workplace claims and applications.

For business owners, that reinforces the importance of ensuring workplace decisions are well documented, clearly communicated, and procedurally sound, according to Kalk. Business owners are no longer wondering whether employees are using AI, but rather whether their people practices are evolving as quickly as their employees’ access to information.

The businesses that will handle this transition most successfully won’t necessarily be the ones investing the most in AI technology, they’ll be the ones investing in communication, transparency, and people leadership, Kalk argued.

Good workplace relations have always mattered, and in an AI-enabled workplace, where employees have instant access to information and advice, they matter more than ever, according to Kalk.

Gazelle Kalk notes that employees are using AI to understand their workplace rights, which is a significant shift in the way employees approach employment matters.

Peninsula Australia is helping businesses handle this new setting, and Kalk emphasizes the importance of people leadership in this transition.

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