Don’t rely on AI for Employment Contracts and HR Documentation

Everybody tells us that AI is going to replace many of the roles and functions currently carried out by real people. And in some areas that may well be true, especially where the roles are very process driven and repetitive.

AI is a powerful tool. It can generate employment contracts, staff handbooks, and policy templates in seconds. But when it comes to legal compliance and protecting your business, relying on AI without expert input, is very risky if not fool hardy - especially in the highly regulated world of UK employment law.

And, we do not think that the Courts will look kindly on the “ChatGPT said so” defence. Lawyers, judges, tribunal panels expect employers to take their responsibilities seriously, and not just ask a machine to create something.

Here are some reasons why you should never just use AI and skip the human check.

1.             AI can’t keep up with the law

UK employment law changes constantly. From evolving case law to new statutory obligations, the legal landscape shifts fast. AI doesn’t always stay current - especially free or generic tools. What it spits out today could already be outdated, or more likely, legally flawed.

 2.             Generic doesn’t cut it

Most AI tools don’t tailor documents to your business. They generate standard content that may not reflect what arrangements you actually have in place, ranging from the commonplace within your employment sector, to the details regarding those aspects unique to your organisation, be it shift patterns, pay arrangements, holiday and sick pay rules, through to other benefits you offer. A clause that works in a retail setting may be totally wrong for a tech start-up or care provider. These small differences can have serious consequences in a Tribunal, as a contract is supposed to be unique to each job role and reflecting the reality of what has been agreed between employer and employee.

3.             Wrong clauses = legal risk

Even small errors in a contract - like a poorly worded notice period or missing reference to key legislation - can make a document unenforceable. AI might miss these subtleties. If challenged, a Tribunal may rule in the employee’s favour, leaving you exposed to costly claims.  Our handbooks are regularly amended, not only to reflect statutory legislation and case law, but also what we notice is happening across our wide client base. 

Our letters are unique to each case.  A flexible working request rejection, carefully addressing the reasoning behind each of the several key operational reasons that in law entitled the employer to turn down the request, when put through Chat GPT resulted in the removal of the operational reasons, as AI did not recognise their legal significance.  

4.             AI doesn’t give professional advice

AI tools do not understand context, strategy or subtleties in contractual wording that can make a huge difference in interpretation. They will not advise you on risks, flag inconsistencies, or guide you on good practice. For example, they will not tell you when a probation clause conflicts with your disciplinary policy. This is where a real expert adds value, knowledge and expertise.

5.             Data privacy concerns

Feeding confidential business data or staff information into AI tools can also raise data protection issues. Unless you know how your data is being used and stored, you might inadvertently breach GDPR rules - especially if you are using public AI platforms.

4 Action Points to Make Your HR Documentation Bulletproof

1.             Always have an expert review AI generated documents

Use AI for a first draft if you must, but never skip the human check. Get an employment law specialist to review and adapt it to your business.

2.             Keep contracts and policies under regular review

Laws change. So should your documents. Set a schedule to review all HR materials at least once a year.

3.             Avoid free templates unless vetted

Many templates online are outdated, not compliant with UK law, and most are not suitable for a SME employer. If you must use them, which we would not advise, have an expert vet them.

4.             Ensure documents reflect your actual practices

If your policies say one thing but you do another, that can create serious legal problems. Make sure everything you issue is accurate, and practically reflects the requirements that you expect from your people, which can differ depending on their job role. 

Conclusion

AI can help speed things up - but when it comes to employment law, speed without accuracy is dangerous. Always combine tech with human expertise to protect your people and your business.  Developing the right type of contractual documentation not only requires professional employment law and HR expertise, but also time, in order to get it right.

The guidance provided in this article is just that - guidance. Before taking any action, make sure that you know what you are doing, or call an expert for specific advice