Leading employment lawyer discusses using AI in claims and how businesses can handle them when they arise
Litigation claims are on the rise in Australia, according to a leading employment lawyer, because of key changes in the demands of workers.
“We’re seeing an increase of around 30-35% in unfair dismissal jurisdiction and that’s because a lot more people are willing to go at it alone and not seek legal assistance,” James Parkinson, partner at Kingston Reid in Perth, outlined.
“With the cost of living and other economic circumstances, I think that plays a big part in why we’re seeing more people bringing claims forward.”
Parkinson added that, in order to deal with these issues, employers need to be better prepared in exactly how these claims can be dealt with.
Planning for dealing with litigation cases
Speaking ahead of HRD’s Employment Law Masterclass in August – where Parkinson will delve deeper into how to better protect your workplace from litigation – he outlined the necessity of “pausing for thought,” especially with more people utilising artificial intelligence (AI) in bringing claims.
“It’s a tool you can use – but it shouldn’t be a substitute for the work that needs to go into bringing a case. This is what I’d say is key, especially with an increase of self-represented litigants who believe it could offer the complete answer.”
“The issue is the technology is prone to hallucinations – that’s a real risk to someone’s case and could be doing them a disservice,” Parkinson emphasised. “Someone might have something legitimate to raise, but because it’s [AI] made something up, for example, credibility goes out the window.”
Parkinson noted this can make some litigation cases easier to identify as inaccurate or not worthy of a response.
“It [generative AI] crafts things in a bog-standard way - you can discern where a litigant themselves has drafted their own letters, there's a bit more emotion to it. You can sense it when you're analysing it, so it's easy to spot.”
Setting out litigation guardrails to protect workplace rights
To make sure businesses are able to properly deal with litigation claims when they arise, Parkinson noted the importance of setting clear guardrails when attempting to respond.
It’s this, he said, that saves the business time, money, and their reputation.
“Many claims have an emotional element to them – and that can often be their downfall as it can include information that’s not necessarily relevant, which can cause a lot of stress.”
“Having a process in place and having direct support in relation to who deals with your litigation profile is key to not adding too much oxygen to the fire. Some things could be resolved by engaging in conversation, perhaps, instead of using the court system,” Parkinson added.
The feeling that you need to defend yourself against every claim put against a business, Parkinson also said, is where many can fall down – as it isn’t necessary.
“If someone’s going to file a claim, they’re going to file a claim no matter how many emails or responses you give them. You don’t need to give a response at that time, you’re wasting time.”
Taking the time to consider litigation responses
For employers unsure about their options, Parkinson recommended using your professional network to use as “sounding boards.”
“It could be a 30-second conversation over email – asking someone to look at a claim or complaint you’re not sure about – and it could save you thousands of dollars. The advice could be as simple as ‘draw a line under this for now,’ or ‘get to the nub of the issue and cauterise it at that point in time with the employee.’”
“You’re avoiding wasting unnecessary resources,” Parkinson concluded.
The Employment Law Masterclass Australia is a must-attend event for HR leaders and employers navigating significant changes to workplace law in 2025. With post-election industrial relations reforms, evolving Fair Work priorities, and growing pressure on compliance, this online event delivers timely insights to help organisations manage legal risk with confidence.
Join us online on 27 August 2025 and explore key developments in restructuring, psychosocial hazards, enterprise bargaining, flexible work, and employee litigation. Gain practical strategies for conducting defensible investigations, supporting employee wellbeing, and adapting workplace policies to meet today’s legal and operational demands.
