Fair Work Commission mandates AI disclosure after 'plain wrong' legal advice
The tribunal is introducing strict verification rules for AI-generated filings following a surge in meritless claims and a costly penalty for a former ALDI worker.
The Fair Work Commission (FWC) is implementing mandatory disclosure and verification rules for litigants using generative AI after a former employee was fined for relying on flawed automated advice. The move signals a crackdown on the growing trend of self-represented parties treating large language models as infallible legal advisors.
In a recent ruling, the FWC ordered Sadnan Khan, a former ALDI employee, to pay $1,230 toward ALDI's legal fees. The penalty followed what the tribunal described as "unreasonable conduct" involving AI-generated submissions used to challenge his dismissal. Michael Easton, a deputy president of the FWC, noted that if Khan had properly reviewed the AI-generated replies, he would have realized his case was "doomed."
The AI Divide
The FWC is grappling with a widening gap between how different users employ technology. On one end are "inexpert users" who may be misled by an AI's tendency to encourage meritless claims. On the other are "sophisticated users" who treat AI as one tool among many.
One such example is Gregory Baker, a computer science lecturer at Macquarie University. Baker successfully challenged casual employment laws by treating his filings like a software development project. He utilized a team of AI agents and a structured "build process," maintaining a repository for his source code and programs to ensure the accuracy of his submissions.
Systemic Impact
This shift comes as the FWC observes a significant increase in the volume of cases. A commissioned research report found that lodgments rose by 44% between the 2022–23 and 2024–25 periods, a trend the commission correlates with the widespread adoption of AI tools. While the FWC acknowledges that AI can improve access to justice for meritorious claims, the surge in "quasi-legal" reliance without critical oversight has forced a change in tribunal management.
New Compliance Rules
To mitigate the risk of "plain wrong" advice entering the legal record, the FWC will enforce new requirements starting October 20, 2026. Applicants must formally disclose the use of generative AI in their filings. Furthermore, litigants must now verify all facts, legal authorities, and hyperlinks provided by the software. The commission also requires confirmation that witness evidence aligns strictly with the witness's own words, rather than AI-synthesized versions.
These measures establish a clear financial and procedural precedent: while AI may assist in drafting, the legal responsibility for accuracy remains solely with the human filer. The tribunal's new stance suggests that blind reliance on automation will no longer be accepted as a valid excuse for procedural errors or meritless litigation.