AI is changing Fair Work claims. Employers need better records.

If you are performance managing an employee, dealing with misconduct, or responding to a workplace complaint, there is a reasonable chance that the employee is already using generative AI to understand their rights, question your process and help prepare what they say to you.

That has an important consequence for employers: good process and good record keeping matter more than ever.

New Fair Work Commission requirements from 20 October 2026

The Fair Work Commission has introduced new requirements governing the use of generative AI in Commission matters.

Where GenAI is used to create, write, edit or otherwise prepare a document, the person using it will generally need to disclose that AI was used, explain how it was used, and confirm that the document has been checked to ensure that the information is accurate, relevant and supported by genuine evidence and legal authorities.

The Commission is not prohibiting employees from using AI.

In fact, research commissioned by the Fair Work Commission found that about 40% of surveyed applicants were already using GenAI to prepare or manage their case.

The concern is that AI can lower the barrier to bringing a claim. It can also transform a poorly expressed complaint into a detailed and persuasive looking application, and in some cases reinforce unrealistic expectations about the strength or value of a claim.

What does this mean for employers?

Do not wait until an application is filed to start building the evidence needed to explain your decision.

If you are managing performance, misconduct, absenteeism, a grievance or another workplace issue, contemporaneous records should clearly demonstrate what happened, what was communicated, what opportunity the employee was given to respond, and why particular decisions were made.

A polished application generated with the assistance of AI does not change the underlying facts. But if those facts have not been properly documented, an employer may find it much more difficult to demonstrate them later.

The new requirements also have some teeth. If a party fails to comply with the Commission requirements concerning GenAI, documents may be given less weight or disregarded. The Commission may also make a costs order or, in an appropriate case, dismiss the application or case.

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Part of a wider change in litigation

The Fair Work Commission approach is consistent with a broader trend across Australian courts. Courts are increasingly introducing Practice Notes and Practice Directions dealing with the use of AI, with a focus on transparency, verification, accuracy and responsibility for documents filed in proceedings.

The practical lesson for employers is not to fear AI. It is to recognise that employees have greater access than ever to tools that can help them analyse and articulate workplace complaints.

That makes careful management, early advice and a reliable documentary record increasingly important.

If you are dealing with a difficult performance management process, employee complaint or potential workplace claim, obtaining specialist Employment Law advice before key decisions are made can significantly improve your position if the matter later reaches the Fair Work Commission.

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The information in this article is not legal advice and is intended to provide commentary and general information only. It should not be relied upon or used as a definitive or complete statement of the relevant law. You should obtain formal legal advice specific to your particular circumstance. Liability limited by a scheme approved under Professional Standards Legislation.

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Senior Associate Solicitor