Knowing where you stand legally is incredibly important for businesses – so we’ve put your legal questions to our experts!

I uploaded workplace safety regulations into an AI tool. It gave my apprentice dubious information and he installed something incorrectly. Where do I stand legally?

Marcus Denning, Senior Lawyer at MK Law says:

This situation is a red flag to the grey area of the law we are entering into. You processed safety regulations with AI and trusted the output, and the apprentice acted on that advice and installed something wrong. The obvious question is whether there is any harm, injury, or regulatory violation imposed by such error, and who is legally responsible. Liability-wise, you are still on the hook.

Although you acted on the recommendation of an AI system, the duty of care that you hold towards your clients, and towards the community under occupational health and safety legislation, is non-delegable. This implies that it cannot be outsourced to a machine. The AI tools will not be regarded as individual professionals in the courts. They are not replacements for your judgment.

In the case of damage reported by a client or an inspector, liability will fall squarely on you or your business.  Should the actions of your apprentice result in a violation of the safety code, causing possible  injury, you could be subjected to fines or insurance claims. Worse still, should your trainee’s installation create a dangerous situation, and a person is injured, criminal negligence could even arise depending on the jurisdiction.

With all that being said, there is still quite a lot of unregulated use of AI in the workplace. The business owners who rely on consumer-grade AI tools to interpret compliance have no statutory immunity or protection. If the AI vendor marketed the product as regulatory grade or developed a suggestion that it guarantees compliance, you would have the right to act against the corporation in a claim of misrepresentation or under consumer protection legislation. This would not absolve you of liability to those parties, but it may provide you with a recovery avenue.

Next time, treat AI as a calculator, not a code inspector. It can speed things up, but it cannot replace a good interpretation. Safety-sensitive tasks should not be delegated to apprentices based on AI summaries before said information is verified by a human who has credentials. AI is not yet given the benefit of the doubt in law, nor will it be given the benefit of the doubt to you.

*Please remember, this advice does not take into account your personal or business circumstances, is general in nature, and is provided for information purposes only. Please seek professional legal advice that’s tailored to your circumstances if you need it.

I need to make one of my team redundant. What do I need to do to ensure I do this correctly in legal terms?

Kirsty Mastores, Co-founder and Director, workchapters, says:

Redundancy is when an employer no longer needs a person’s job to be done by anyone, and it must be handled carefully to meet legal obligations and avoid unfair dismissal and general protections claims.

To be lawful, the process must meet the definition of a ‘genuine redundancy’ under the Fair Work Act 2009 (Cth).

This means the role is no longer required due to changes in operational needs – such as restructuring, cost reduction, or automation – and not because of the employee’s performance or conduct. An employee must also not be selected on prohibited grounds.

If the employee is covered by a modern award or enterprise agreement (legally binding documents setting minimum conditions for certain roles or industries), you must follow any consultation obligations. This involves notifying the employee their role is at risk, explaining the reasons, and considering any feedback or alternatives they suggest.

You must also explore whether the employee could be redeployed to a suitable role within your business or a related entity. Skipping this step can render the redundancy invalid.

If the redundancy is genuine, the employee is usually entitled to notice, accrued entitlements, and redundancy pay under the National Employment Standards (NES). Some employers may also offer additional redundancy entitlements or benefits under their own internal company redundancy policies, and the terms of individual employment contracts should be reviewed. Exemptions may apply for small businesses with fewer than 15 employees, who are not required to pay NES redundancy.

However, the legal aspect is only one consideration. Ensuring that you handle the process and communications with care, sensitivity and respect will go a long way to ensuring employees are offboarded/exited smoothly, ideally with additional support such as CV reviews and interview coaching to help them find their next role.

Redundancies are complex – get advice early.

* Please remember, this advice does not take into account your personal or business circumstances, is general in nature, and is provided for information purposes only. Please seek professional legal advice that’s tailored to your circumstances if you need it.

Where do I stand legally if my estimated price for a job is way under what it cost in reality?

Michael Scherini, Founder at Scherini Lawyers, says:

When a service provider issues an estimate for a job that ultimately costs significantly more, their legal position largely depends on whether the estimate was binding, how it was communicated to the client, and whether any relevant contractual terms apply.

An estimate is generally regarded as an approximate cost prediction rather than a fixed price. If it is clearly labelled as an estimate and there is no contractual agreement to perform the work at that price, the service provider may be entitled to charge for the actual cost incurred – provided the final amount remains reasonable.

However, if the estimate is presented as a fixed-price quote, or if the client reasonably relied on it to their detriment, disputes may arise. In Australia, consumer protection laws, including the Australian Consumer Law (ACL), may apply, particularly if the pricing was misleading or deceptive under section 18 of the ACL. Businesses must ensure their pricing representations are not likely to mislead customers.

To mitigate legal risk, service providers should:

• clearly state whether a price is a non-binding estimate or a fixed quote
• include terms allowing for adjustments based on unforeseen circumstances
• communicate with clients promptly if costs escalate beyond expectations.

If a dispute arises, parties may seek resolution through negotiation, mediation, or legal action. Consulting a lawyer is advisable to assess specific circumstances.

* Please remember, this advice does not take into account your personal or business circumstances, is general in nature, and is provided for information purposes only. Please seek professional legal advice that’s tailored to your circumstances if you need it.

I often use subbies, but don’t have anything formal in place. What do I need? 

Oliver Morrisey, lawyer, says:

Using subcontractors without formal agreements might seem like it saves time, but it leaves your business open to disputes, liability issues, and financial risks. A subcontractor agreement can simplify your work relationships and shield you from unnecessary trouble.

The most important reason to have a subcontractor agreement is to clearly define responsibilities. Without this, misunderstandings can arise about who is responsible for certain tasks, delays, or even costly mistakes. I worked with a contractor who ran into trouble when a subcontractor they hired improperly installed wiring, causing delays and extra costs. Since there was no formal agreement, the contractor ended up covering the costs to maintain the client relationship. That was an expensive lesson for them.

A subcontractor agreement helps you avoid this by explicitly stating the scope of work, deadlines, and who is liable for issues. For example, it should include a clause requiring subcontractors to follow safety and industry standards and carry their own insurance. This protects you from claims and ensures they are responsible for correcting any mistakes.

You should also include terms for payment, timelines, and what happens if the subcontractor fails to meet expectations. By setting everything out in writing, you protect your business and create a professional relationship built on clarity.

* Please remember, this advice does not take into account your personal or business circumstances, is general in nature, and is provided for information purposes only. Please seek professional legal advice that’s tailored to your circumstances if you need it.