An increase in the use of Artificial Intelligence has been linked to the rise in unfair dismissal claims made by both employers and employees.
The number of of unfair dismissal claims made to the Workplace Relations Commission increased from 2,285 in 2024 to 3,270 last year, a rise of 43%.
According to Littler, a specialist international employment law firm, this increase can be partly put down to the restructuring in businesses, implemented in order to cut payroll costs and allow further investment in AI.
Over the last three months, as many as 20,300 jobs were lost in Ireland's tech industry, while Littler have reported that many redundancies have been linked to the increased adoption of AI. They also suggested that AI tools had been making it easier for staff who were let go, to file complaints.
Speaking about this, Barry Reynolds, a partner in the law firm's office in Dublin, said: “As businesses restructure, it’s almost inevitable that unfair dismissal claims will increase".
“As businesses reshape their workforces around new technologies, the pressure to reduce or redistribute costs looks set to continue, including in many cases reducing headcount or removing employees or structures that are seen as unproductive", he said. “When these initiatives come under scrutiny – as they often do – what is looked at is whether decisions about dismissals are supported by clear rationale and fair procedures".
“A failure to follow a robust process can turn a necessary business decision into a legal dispute".
Per the Irish Independent, Reynolds explained that artificial intelligence is changing how employees pursue any legal claims, and that AI is helping them to remove any practical barriers when it comes to filing complaints.
He said: “Low-cost AI tools now make it much easier for employees to obtain guidance on their legal rights, prepare correspondence and draft complaint forms after a dismissal".
“Employees who may previously have been discouraged from seeking legal advice are now feeling better equipped to bring claims themselves, even if the guidance they are relying on may not always be balanced or succinct and, at worst, may be riddled with hallucinations".
According to Mr Reynolds, it has become more common for courts and tribunals to warn parties on the dangers of an over-reliance on AI and the possible severe consequences for their claims if they have misused this techology.
This comes after the High Court and Court of Appeal had introduced new rules which meant that lawyers and lay litigants who failed to check the accuracy of any legal filings compiled with the assistance of generative AI could face major legal consequences, including costs orders. (All quotes in this piece according to The Irish Independent).
