If you are an Australian employer, the unfair dismissal claims surge should be on your radar. The Fair Work Commission received 44,075 applications in 2024–25 — 24% above its five-year average — and its total workload has jumped by more than 70% in just three years. The driving force, according to FWC President Justice Adam Hatcher, is partly the rapid spread of generative AI tools that let former employees file polished, AI-assisted claims in minutes.

In an 11 September 2026 speech to the Australian Industry Group, Justice Hatcher revealed that approximately 40% of applicants in unfair dismissal and general protections dismissal matters now use AI tools to prepare or manage their cases. The result is a flood of “glossed up” applications stretching the Commission’s resources and increasing the volume of claims employers must respond to.

Here is what every Australian employer needs to know.

What’s Driving the Unfair Dismissal Claims Surge?

The FWC’s filing numbers tell a clear story. In 2024–25, the Commission received 44,075 applications — a 24% increase above its five-year average. Unfair dismissal and general protections dismissal matters account for the bulk of this growth.

General protections claims are rising even faster. FWC data indicates general protections dismissal applications are on track to increase by 80% over the three years to the end of FY2025. These claims allege an employer took adverse action against an employee for exercising a workplace right — and they carry no statutory cap on compensation, making them particularly high-risk. Employers facing a general protections claim need to understand that the financial exposure can exceed that of an unfair dismissal matter.

The Fair Work Act 2009 sets out the framework for both claim types. Unfair dismissal claims can be lodged within 21 days of the dismissal taking effect, and the maximum compensation the Commission can order is $95,050 — half of the $190,100 high income threshold that applies from 1 July 2026. General protections claims have no such cap.

How AI Is Fueling the Unfair Dismissal Claims Surge

The most striking development is the role of generative AI. According to the FWC, roughly 40% of applicants in unfair dismissal and general protections dismissal matters now use AI tools like ChatGPT to draft or manage their claims.

Justice Hatcher described these as claims “glossed up” with AI — applications that may appear legally sophisticated on the surface but often lack substantive merit. The problem for employers is that AI-assisted claims can be filed quickly and at scale, increasing the volume of matters you need to respond to, even if many ultimately fail.

The FWC President’s speech on 11 September 2026 outlined the Commission’s response, including a new guidance note on the use of GenAI in FWC proceedings that takes effect from 20 October 2026.

General Protections Claims: The Fastest-Growing Threat to Employers

While unfair dismissal claims dominate the headlines, general protections dismissal applications are growing even faster — on track for an 80% increase over three years to the end of FY2025.

Unlike unfair dismissal, general protections claims:

• Have no compensation cap (unfair dismissal is capped at $95,050)
• Can be filed for alleged adverse action against an employee for a workplace right
• Give employers only 7 days to respond, compared to 14 days for unfair dismissal

The FWC is examining whether to extend the response time for general protections applications. Until then, the tight 7-day window leaves employers scrambling to prepare a defence.

FWC Reforms: What’s Changing and When

The Commission is implementing several reforms to manage the surge:

• MyFWC portal: Launched in 2025, this online platform is now the primary lodgment method for unfair dismissal (Form F2) and general protections dismissal (Form F8) applications.
• Case management changes: New processes for handling unfair dismissal and general protections dismissal cases are expected later in 2026.
• GenAI guidance: A new guidance note governing the use of generative AI in Commission proceedings applies from 20 October 2026.
• Response time extensions: The FWC is examining whether to give employers longer than the current 7 days to respond to general protections dismissal applications.
• New legislative powers: Recent reforms give the FWC powers to handle disputes faster, decide some matters “on the papers” without a hearing, and restrict individuals who repeatedly bring unmeritorious claims.

The National Employment Standards under the Fair Work Act 2009 remain the baseline for all employment conditions. Employers should keep abreast of these procedural changes, as they will directly affect how claims are managed and heard.

How Employers Can Prepare for More Claims

With claim volumes rising, preparation is your best defence. Here is what you should do:

1. Document everything. The Fair Work Act requires employers to keep employment records for 7 years. Proper documentation — timesheets, performance reviews, warning letters, and termination decisions — is your strongest evidence in any FWC matter. Download free employment documents to ensure your records meet the standard.
2. Follow a fair dismissal process. Small businesses (fewer than 15 employees) must follow the Small Business Fair Dismissal Code to ensure dismissals are fair. Larger employers need to demonstrate a valid reason, provide procedural fairness, and give the employee an opportunity to respond.
3. Know your timeframes. Former employees have 21 days from the date of dismissal to file an unfair dismissal claim. Employers have 14 days to respond (Form F3) for unfair dismissal and just 7 days for general protections dismissal applications — though extensions are under consideration.
4. Review your contracts. Well-drafted employment contracts and workplace policies set clear expectations and reduce the likelihood of disputes reaching the Commission.
5. Seek advice early. Do not wait for a claim to arrive. If you are considering terminating an employee, getting advice first is far cheaper than defending a claim later.

What to Do If You Receive an Unfair Dismissal Claim

If a former employee files an unfair dismissal claim against your business:

• You will receive a notification from the FWC via the MyFWC portal or by email.
• You have 14 days to file a response (Form F3) for unfair dismissal, or 7 days for general protections dismissal.
• The Commission may list the matter for conciliation, a hearing, or decide it “on the papers.”
• Maximum compensation for an unfair dismissal claim is $95,050 (half the $190,100 high income threshold from 1 July 2026).
• General protections claims carry no compensation cap.

Engaging an unfair dismissal defence specialist early in the process — ideally before you file your response — gives you the best chance of a favourable outcome.