Published: October 2025
Last reviewed: October 2026. What's changed since October 2025: a Fair Work Commission decision involving a ChatGPT-assisted redundancy email, a review-before-you-send rule for every prompt on this page, clear warnings on Modern Award pay rates and classifications, and a verification prompt you can add to any request.
Fair Work warning: review before you send. In Hayley Lord v Millet Hospitality Geelong Pty Ltd [2025] FWC 2740, decided on 25 September 2025, the Fair Work Commission found that a small business owner's email told an employee a decision to remove her role had already been made, so the consultation required by her award never happened. The owner said he had used ChatGPT to help him write in English and that it may not have captured his true meaning. The Commission did not accept that. The dismissal was not a genuine redundancy, it was found to be unfair, and compensation was ordered. Every prompt on this page produces a draft only. Read, personalise and check every AI-drafted message before an employee sees it, and have significant conversations in person.
As a small business owner in Australia, you're not just running operations—you're also the HR department. From writing job ads to managing performance issues and navigating Fair Work requirements, people management can feel like a full-time job on its own.
ChatGPT can be your virtual HR assistant, helping you draft professional communications, create policies, understand compliance requirements, and handle sensitive employee situations with confidence.
This free cheat sheet provides copy-paste prompts designed specifically for Australian small businesses. Simply describe your situation, and let ChatGPT help you respond professionally and compliantly.
Like automation? Also check out some of our free business tools to supercharge your HR today.
For understanding why an AI-drafted message is still your message
The facts are ordinary, which is why the case matters. A housekeeping supervisor had worked at a Geelong serviced apartment complex for close to five years. On 26 May 2025 the owner emailed her what he called a formal redundancy notice: "As part of our current operational restructure, we have made the difficult decision to remove the Housekeeping Supervisor position effective 26 June 2025." The same email offered to discuss alternative part-time or casual roles.
Commissioner Redford accepted that the business was under genuine financial pressure and that the role was no longer needed. The problem was consultation. The Hospitality Industry (General) Award 2020 required the employer to discuss a major change with the affected employee, and consultation has to happen before a final decision is made. The email announced a decision that had already been made, so the later offers to talk were, in the Commission's words, entirely about discussing re-deployment options.
At the hearing, the owner said that as a non-English speaker he had used ChatGPT to express himself and that it may not have captured his true meaning. The Commission did not accept this, because he had repeatedly confirmed the decision in his own correspondence and evidence. The Commission also said that in most circumstances "a cursory text message or email is not an appropriate means of conveying information as serious as the dismissal of a person's employment", and distinguished between the ignorance that can come from a small business lacking HR expertise and "a failure to adhere to basic standards of decency with respect to an employee". The size of the business did not excuse the failure to speak to her face to face, when they had been at work together that day.
The dismissal was not a genuine redundancy and was found to be unfair. The employer was ordered to pay one week's pay, $1,162 less tax, plus $133.63 in superannuation. The amount was small. The lesson is not.
What it means for you. The words in an AI draft become your words the moment you send them. If a draft says a decision has been made, the law will read it that way, whatever you meant. Use these prompts to prepare, then talk to the person, consult before you decide, and send written confirmation you have read line by line.
Liability has not moved. AI does not transfer responsibility for tax positions, BAS lodgement, award interpretation or employment decisions. Those stay with the business and the registered agents and advisers it engages, whatever tool produced the first draft.
The review-before-you-send rule. Before any AI-drafted message goes to an employee or candidate, check five things:
For writing job descriptions, screening candidates, and managing the hiring process. Review and personalise every draft before it is sent.
For welcoming new team members and setting them up for success. Review and personalise every draft before it is sent.
For creating workplace policies and understanding Australian employment law. Review and personalise every draft before it is sent.
A warning on pay and awards. ChatGPT and similar tools cannot reliably apply Modern Award pay rates, classifications, penalty rates or allowances, and they may not reflect the latest annual wage review or award changes. Use them to understand the questions to ask, then check the answer against the Fair Work Ombudsman's pay tools and award information, or ask a professional. Never put an AI-generated pay rate into a contract, offer or pay run without that check.
For conducting reviews, giving feedback, and managing performance issues. Review and personalise every draft before it is sent.
For handling sensitive situations, policy changes, and workplace issues. Review and personalise every draft before it is sent.
For creating a safe, supportive work environment. Review and personalise every draft before it is sent.
For managing resignations, terminations, and smooth departures. Review and personalise every draft before it is sent.
Make these prompts work better for your specific situation by adding:
No, ChatGPT cannot provide legal advice. It can help draft documents and explain general concepts, but you should always have employment contracts, termination letters, and formal warnings reviewed by an HR professional or employment lawyer to ensure Fair Work compliance.
In Hayley Lord v Millet Hospitality Geelong Pty Ltd [2025] FWC 2740, the Commission found an emailed redundancy notice announced a decision that had already been made, so the consultation required by the Hospitality Industry (General) Award 2020 did not occur. The owner's explanation that he had used ChatGPT and it may not have captured his meaning was not accepted. The dismissal was not a genuine redundancy, it was unfair, and compensation was ordered. The Commission also criticised delivering news this serious by email rather than face to face.
Not reliably. AI tools can explain how awards work, but they cannot be relied on to apply the correct Modern Award rate, classification, penalty or allowance, and may not reflect the latest changes. Check pay and entitlements with the Fair Work Ombudsman's tools or a professional before you act.
Avoid entering personally identifiable information like employee names, addresses, medical details, or specific performance issues into ChatGPT. Instead, use general descriptions or anonymised scenarios. For sensitive HR matters, always consult with a qualified HR professional.
Employment contracts, termination letters, performance improvement plans, redundancy notices, workplace investigation reports, and any document related to disputes or potential legal issues should always be reviewed by an HR professional or employment lawyer before use.
ChatGPT can provide general information about Fair Work regulations, modern awards, and the National Employment Standards, but the information may not be current or specific to your industry or situation. Always verify Fair Work information with the Fair Work Ombudsman website or an HR professional.
ChatGPT can help structure feedback conversations, draft performance review templates, create improvement plans, and suggest constructive ways to communicate performance issues. However, the actual performance management process should follow your company's policies and comply with Fair Work requirements.
Don't use ChatGPT as a substitute for professional advice on terminations, redundancies, workplace investigations, discrimination or harassment cases, workers' compensation claims, or any situation with legal risk. These situations require expert HR and legal guidance.
ChatGPT can help draft basic employment contract templates, but all contracts must be reviewed by an employment lawyer or HR professional to ensure they comply with Fair Work requirements, include mandatory clauses, and protect your business interests.
Small businesses should: regularly review Fair Work Ombudsman updates, ensure employment contracts align with modern awards, maintain accurate time and attendance records, document all HR decisions, seek professional advice for complex situations, and consider engaging an HR consultant for ongoing compliance support.
ChatGPT can help you understand the investigation process and structure interview questions, but workplace investigations involving bullying, harassment, discrimination, or serious misconduct should be conducted by a trained investigator or HR professional to ensure procedural fairness and legal compliance.
Common mistakes include: misclassifying employees as contractors, failing to pay correct award rates and entitlements, not providing written employment contracts, inadequate record-keeping, mishandling terminations, ignoring modern award requirements, and not documenting performance issues properly.
Start by familiarising yourself with Fair Work basics, create clear policies and procedures, document everything, seek advice before making major decisions, invest in HR software for record-keeping, and consider engaging a fractional HR consultant. Tools like ChatGPT can help with routine tasks, but professional guidance is essential for compliance and risk management.
Consider professional HR support when you: reach 10-20 employees, face a complex employment issue, plan to scale quickly, have received a Fair Work complaint, need to conduct a workplace investigation, are restructuring or making redundancies, or simply don't have time to manage people properly while running your business.
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