AI-fuelled surge in unfair dismissal, other claims ‘placing strain’ on Fair Work Commission

Australia’s workplace umpire is overhauling its internal processes, warning an artificial intelligence-fuelled surge in unfair dismissal and other claims is “placing a strain” on all aspects of its operations.

Fair Work Commission general manager Murray Furlong on Friday said the umpire’s total workload was on track to grow by more than 70 per cent in the space of three years by the end of the 2026 financial year.

In a 10-page statement, Mr Furlong revealed that as of the end of April, it had received 44,039 claims. This was close to matching last financial year’s record high of 44,075.

FWC president Justice Adam Hatcher had previously said this reflected a growing number in dismissal claims that were mostly written by generative AI.

Mr Furlong said the commission was also experiencing “resourcing pressures” in major cases, including gender undervaluation reviews, reviews of award provisions relating to working from home and part-time employment.

“The increased workload is placing strain on every element of the commission’s operations,” Mr Furlong said.

“The unwavering commitment and tireless efforts of members and staff across the organisation are recognised in managing the ever-increasing workload. However, applications continue to rise without any signs of slowing, further increasing pressure on existing and future resources.

“This is unsustainable and we cannot continue to operate in the same way.”

The number of self-represented litigants with unfair dismissal claims had also increased rapidly since early 2025, Mr Furlong said.

Those applicants were coming to the commission with little or no workplace relations experience and were “often informed by content generated by AI”.

The FWC had started reviewing how it managed unlawful dismissal claims, given this was one of the fastest growing areas of work for the commission.

Mr Furlong said the commission had also commenced an internal review of general protection claims not involving dismissal and sexual harassment cases.

A review of the unfair dismissal jurisdiction is to follow in the second half of 2026.

“These reviews are likely to result in significant changes to the commission’s processes and forms,” Mr Furlong said.

The commission is also looking at using generative AI to reduce manual processing and supporting staff with pre-approval checks for enterprise agreements, including flagging if they do not pass the “better off overall” test.

It’s also considering using an AI voice agent to help triage helpline calls.