A business where employees are empowered and encouraged to raise concerns or air grievances is one where trust, transparency and respect can grow.
In my experience, when complaints or disagreements are addressed informally, respectfully and early, organisations are often better placed to resolve issues before they escalate into formal and often costly disputes. It can also strengthen the relationship between employer and employee, contribute to a positive workplace culture and help organisations become the employer of choice we all aspire to be.
However, when employees feel their concerns are not being heard, or expected outcomes are not backed by meaningful action, resentment can fester. This is particularly true where communication with staff is limited, or where workplace grievance policies are absent, unclear or applied inconsistently.
Left unaddressed, the outcome is often predictable: engagement suffers, good employees leave, productivity declines and reputational risk increases.
AI is changing how workplace complaints are made
The importance of investing in your people and maintaining strong workplace systems is now being tested in a new way, with the Fair Work Commission experiencing a significant increase in unfair dismissal and general protections applications.
Fair Work Commission President Adam Hatcher has identified generative AI as a contributing factor in a nearly 70 per cent increase in complaints lodged over the past three years.
Employees now have access to free, sophisticated tools to analyse workplace agreements, pay records, company policies and employment legislation. As a result, they can identify potential issues and prepare detailed complaints and formal applications in a matter of minutes, often without engaging legal advisers.
The growing volume of claims is also creating delays in the Fair Work Commission’s processes. The impact, however, extends beyond the Commission itself.
What we are seeing in practice
At Perks People Solutions, we are seeing employers caught off guard, and in some cases blindsided, by how quickly and comprehensively complaints can now be prepared and lodged using AI tools. In some instances, employees are pursuing formal avenues before first utilising internal complaint processes.
Delays in the Commission’s ability to process applications can also create challenges for employers. In some cases, organisations may not receive notification of unfair dismissal claims until several weeks, or even months, after an employee has left the business, making investigations, record collection and witness engagement more difficult.
For employers, this can mean spending more time and resources responding to claims, including matters that are ultimately unsuccessful or based on inaccurate information.
We have seen applications containing inaccurate information, “hallucinated” evidence and, in some cases, references to non-existent case law generated through AI tools. While these claims may ultimately be dismissed, employers are still required to spend time and resources responding. It is perhaps no surprise that many of these matters do not progress.
In response, the Fair Work Commission and Federal Government have introduced measures aimed at managing the growing use of AI in workplace claims. These include requiring applicants to disclose whether AI has been used to prepare documents, along with additional powers for the Commission to deal with claims that lack merit or involve repeat applications.
A test of workplace systems and culture
The rise of AI-assisted claims should not simply be viewed as a procedural issue. In many respects, it is also a test of an organisations internal systems, workplace culture and record keeping practices.
If an organisation has gaps in its HR processes, unclear policies, inconsistent payroll practices, or a failure to follow established procedures, AI may make those weaknesses easier to identify and challenge.
For employers, this reinforces the importance of maintaining accurate records, clear policies and consistent people management practices. Just as importantly, organisations need to create a culture where employees feel comfortable raising concerns early, and trust that grievances will be handled fairly and respectfully.
When employees have confidence that their concerns will be heard and addressed appropriately, they are more likely to raise issues early and work through internal processes before pursuing formal action.
While AI is changing how workplace claims are prepared and pursued, it does not change the fundamentals of good people management. Organisations that invest in strong systems, clear processes and open communication will always be better placed to address concerns early, maintain trust and minimise the risk of disputes escalating unnecessarily.
