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AI and Employment Law

AI and Employment Law

AI and Employment Law

As technological advancements continue to reshape the world around us, the incorporation of AI systems into the workplace is becoming increasingly prevalent.

While AI holds potential for improving efficiency, productivity, and decision-making processes, it also raises complex legal and ethical questions.

In this rapidly evolving landscape, it is imperative for both employers and employees to understand the intricate relationship between AI and employment law.

From hiring algorithms and predictive analytics to automated decision-making processes and workplace surveillance, the implications of using AI in the workplace are expansive.

How is AI being used by HR professionals / employers?


AI tools offer valuable support to HR teams during the recruitment process by assisting with candidate shortlisting and even conducting video interviews.

However, the effectiveness of these tools heavily relies on the quality of human inputs. If the data used to train the AI system is biased or skewed, the tool may unintentionally penalise certain traits in candidates’ applications, which the employer never intended or anticipated.

For instance, if an employer relies on historically successful CVs that predominantly belong to men, the AI tool may mistakenly flag CVs from individuals who are not male as undesirable. This issue was encountered by Amazon, leading to the abandonment of an AI tool in 2018.

It is crucial to acknowledge that AI tools are not infallible and must be carefully designed, trained, and monitored to prevent bias and unintended consequences.

Human oversight is essential to ensure fairness and to rectify any biases that may arise. By combining the strengths of AI tools with human judgment, organisations can strive for a more inclusive and equitable recruitment process.

Monitoring employees

As remote work becomes the standard, employers are progressively relying on AI tools to monitor employees’ activities, such as measuring productivity, assessing performance, monitoring social media usage, and preventing the unauthorised disclosure of confidential information.

However, it is essential to recognise that employees have a legitimate expectation of privacy in the workplace. Monitoring employees in this manner can give rise to legal and employee relations risks if an employer’s actions are deemed unreasonable or disproportionate.

Striking a balance between monitoring and privacy rights is crucial for employers to mitigate these risks and ensure compliance with relevant laws and regulations.

It is important for employers to adopt reasonable and proportionate monitoring practices, establish clear policies, and communicate transparently with employees about the extent and purpose of any monitoring efforts.

This approach helps maintain a positive work environment, foster trust, and protect both employees’ rights and the organisation’s interests.


In cases of large-scale redundancy processes where a significant number of employees need to be interviewed, AI tools can be used to conduct assessments as part of the redundancy selection process.

Similar to using AI for recruitment, these tools can be programmed to identify and give higher ratings to specific words. Challenges can arise if employers solely rely on AI tools to make decisions without human involvement or understanding of the decision-making process.

This can result in difficulties when defending unfair dismissal claims, as employers bear the burden of demonstrating fair reasons for dismissal, adherence to a fair process, and reasonable responses given the circumstances.

Recently, Estée Lauder faced this issue when two make-up artists filed a claim, and the employer was unable to adequately explain how the AI tool arrived at the decision to make them redundant.

It underscores the importance of combining AI tools with human oversight, comprehension of the decision-making process, and the ability to provide clear justifications in order to ensure fairness and transparency in redundancy processes.

What are the benefits of using AI for recruitment processes?

The use of artificial intelligence (AI) in recruitment processes offers several benefits for employers.

One of the key advantages is the ability to save time and money. AI-powered algorithms can quickly analyse and filter through large volumes of CVs, identifying the most qualified candidates based on specific criteria set by the employer.

This automation eliminates the need for manual screening, reducing the time and effort required from HR personnel.

AI can also streamline the recruitment process, from sourcing candidates to conducting interviews. Automated chatbots or virtual assistants can engage with potential candidates, answering frequently asked questions, and pre-screening them before they reach the interview stage.

This allows recruiters to focus on more strategic tasks and invest their time in building relationships with top candidates.

By adopting AI in recruitment, companies can stay ahead of the competition and remain forward-thinking and future-proof. The field of recruitment is constantly evolving, and keeping up with the latest practices and trends is crucial for attracting and retaining top talent.

AI enables employers to leverage advanced analytics and predictive modelling to identify patterns and trends in candidate data, improving the accuracy of hiring decisions.

What are the risks of using AI for recruitment processes?

While AI brings numerous benefits to recruitment processes, there are also several shortcomings that need to be considered.

One of the primary concerns is the potential for algorithmic bias. AI systems rely on historical data to make decisions, and if that data contains biases or reflects existing inequalities, the AI algorithms may inadvertently perpetuate those biases.

This can lead to unfair or discriminatory outcomes in candidate selection, disadvantaging certain groups based on factors such as gender, ethnicity, or socioeconomic background.

Additionally, the overreliance on AI can undermine the human element of recruitment. While AI can efficiently analyse CVs and data, it may struggle to assess soft skills, cultural fit, and other subjective qualities that are crucial for job performance.

Relying solely on AI systems without human involvement can lead to missing out on qualified candidates or overlooking important intangible qualities.

Lastly, there are concerns regarding data privacy and security. AI systems require access to substantial amounts of personal data, and organisations must ensure compliance with relevant data protection regulations to safeguard applicant information.

Addressing these potential issues requires a thoughtful approach. This is likely to include regular audits of AI systems for bias, transparent and explainable AI algorithms, a balanced combination of AI and human judgment, careful consideration of implementation costs, and robust data protection measures to maintain privacy and security.

How is AI affecting employment law?

AI is significantly influencing employment law, raising various legal considerations and necessitating adaptations to existing regulations.

One key aspect is the impact of AI on non-discrimination laws. AI systems can unintentionally perpetuate bias and discrimination in areas such as recruitment, performance evaluation, and workplace monitoring.

Employment law must grapple with issues of algorithmic bias, ensuring that AI systems comply with anti-discrimination legislation and that employers remain accountable for fair and unbiased decision-making.

AI’s influence on privacy and data protection is another crucial area. AI often relies on vast amounts of personal data, and the collection, storage, and processing of such data must align with data protection regulations. Employees’ rights to privacy and consent, as well as transparency in data usage, become paramount concerns.

The advent of AI-powered automation and robotics has raised questions about job security, redundancy, and fair dismissal practices. Employment law must address these challenges, ensuring appropriate safeguards and mechanisms to protect workers’ rights and provide fair recourse in cases of job displacement.

The emergence of AI also necessitates revisiting intellectual property laws. With AI generating original works, questions arise about ownership and attribution. Employment law must establish frameworks that clarify the rights and responsibilities of both employers and AI systems in relation to intellectual property.

An ongoing dialogue between policymakers, legal experts, and technology stakeholders is necessary to ensure that employment laws keep pace with the rapid advancements in AI, protecting workers’ rights, promoting fair practices, and fostering an equitable and inclusive work environment.

How our employment law solicitors can help

Our experienced employment law solicitors can work alongside you and your business, helping you to effectively navigate the ever-changing landscape of AI and employment law.

Our employment law team provide an accessible and responsive service, working proactively to solve your query. Our focus on providing the most current best-practice advice means our team will help you make informed decisions every time.

To talk to one of our employment law solicitors, call us today on 01895 2072892 or email employment@ibblaw.co.uk.