It’s tempting for businesses to use artificial intelligence platforms or free downloads to generate employment contracts. But relying on AI-generated documents or generic templates can lead to serious legal consequences, including claims for unfair dismissal, underpayment, and breaches of the Fair Work Act 2009 (Cth).
We’ve seen first-hand how poorly drafted contracts (especially those not written or reviewed by a lawyer) can expose employers to avoidable legal disputes.
This article, drafted by our employment contract lawyer, explains why employment agreements must be drafted by qualified lawyers. We also discuss how using a professionally prepared template can save your business time, money, and legal headaches.
Key Takeaways
- Artificial intelligence platforms should not replace qualified legal advice
- Employment contracts must comply with Australian employment laws, including the Fair Work Act
- Poorly drafted templates often miss key clauses or include unenforceable terms
- Lawyer-prepared contracts reduce the risk of disputes, regulatory issues, and unfair dismissal claims
- We offer customisable, legally sound contract templates designed by expert employment lawyers
The Legal Risks AI generated Employment Contracts
While AI platforms can produce documents quickly, they have significant limitations when it comes to legal compliance. Some key problems with AI-generated contracts include:
- AI does not fully understand current or local laws (e.g. Fair Work, NES, modern awards)
- it cannot tailor clauses to your specific industry or employee arrangements
- it may include terms that are unenforceable or even illegal
- there is no legal responsibility or liability if the contract causes a dispute
Sometimes, you really do get what you pay for! We often come across employment contracts generated by AI that really highlight its limitations when it comes to personalised and compliant employment templates.
Free or AI created templates can often be based on overseas laws, not Australian legislation, and be written in confusing legalese that your new hire or HR team (or you) don’t understand.
Many free templates or AI generated contracts also miss important clauses like minimum wage compliance, award coverage, and employment contract termination rights.
How Can a Lawyer Draft Employment Contracts Better Than AI?
Lawyers don’t just “write documents”, they ensure your businesses contracts are:
- compliant with the Fair Work Act 2009 (Cth) and National Employment Standards
- legally binding and enforceable
- tailored to your business size, industry, and workforce needs
- considered against future regulatory changes or potential litigation
Benefits of Using a Lawyer
Employment lawyers are experts in helping you:
- avoid costly legal mistakes
- strengthen your business’s HR compliance
- clearly define rights and obligations from day one
- protect confidential information, intellectual property, and client relationships
- prevent misunderstandings and employment disputes
Remember – If it goes wrong, you’ll need a lawyer anyway. That’s why it’s better to get it right from the start!
What’s Included in Prosper Law’s Employment Contract Templates?
Unlike generic templates you can find online for free, our employment contracts are drafted and reviewed by experienced employment lawyers. They’re suitable for full-time, part-time, casual and fixed-term employees, award or enterprise agreement-covered workers, or onsite, remote and hybrid positions.
We even have templates for an independent contractor agreement!
Each contract generally includes:
- salary and entitlements
- probation periods
- termination and notice clauses
- leave provisions
- confidentiality and IP protection
- optional clauses like non-competes and non-solicitation
All of our templates are customisable and come with guidance so you can confidently onboard staff with peace of mind.
Frequently Asked Questions
Are artificial intelligence platforms accurate for legal documents?
No. AI platforms are not lawyers and cannot offer real, customised legal advice. They may produce documents that look convincing but are not compliant with Australian law.
Do Prosper Law’s template agreements follow Fair Work requirements?
Yes. All of our contracts are drafted by lawyers and comply with the Fair Work Act, NES, and relevant award obligations. We offer:
- fixed-fee contract drafting, customised for your business
- contract reviews to check if your current agreements are legally compliant
What’s the risk of using a generic or free template?
Poorly written templates for your business can lead to an increased risk of:
- unfair dismissal claims
- wage underpayment disputes
- invalid termination or restraint clauses
- loss of IP or confidential business information
Many of which can be avoidable if done correctly from the start.
Can Prosper Law customise a contract for my business?
Absolutely! We offer fixed-fee drafting and reviews to ensure your agreement suits your business, industry, and risk profile. Reach out today to find out more!
How often should employment contracts be updated?
We recommend reviewing contracts at least annually, especially after:
- legislative changes
- updates to Modern Awards
- changes in employment status (e.g. part-time to full-time)
