ComplianceApril 25, 2026ยท6 min read

Using AI for Fair Work Compliance in Australia

Stop guessing about Modern Awards and NES entitlements.

Australian employment law is complex. There are 122+ Modern Awards, the National Employment Standards (NES), enterprise agreements, and state-based variations. Getting it wrong is expensive โ€” underpayment claims, penalties, and reputation damage.

AI agents with Fair Work skills can help you navigate the basics quickly.

What AI Can Help With

  • Award identification: Which Modern Award applies to an employee?
  • Pay rates: Minimum rates, penalty rates, overtime calculations
  • NES entitlements: Leave, notice periods, redundancy pay
  • Classification: Employee vs contractor distinctions
  • Common questions: Can I dock pay for lateness? How much notice for termination?

Example: Award Identification

Ask your AI agent:

"What award covers a full-time barista in Melbourne?"

โ†’ Restaurant Industry Award 2020 or General Retail Industry Award 2020 (depending on the business type)

Example: Redundancy Calculation

"Calculate redundancy pay for an employee with 5 years service"

โ†’ NES minimum: 10 weeks' pay (based on ordinary hours)

Example: Penalty Rates

"What's the Sunday penalty rate under the Hospitality Award?"

โ†’ Full-time/part-time: 150% | Casual: 175%

Setting Up Fair Work Skills

Install the Fair Work skill:

npx skills-au add fair-work -a claude

Or for Cursor:

npx skills-au add fair-work -a cursor

What It Knows

The Fair Work skill includes:

  • All 11 NES entitlements
  • Modern Award structure and common awards
  • Minimum wage rates (updated annually)
  • Termination and redundancy rules
  • Leave calculations (annual, personal, parental)
  • Employee vs contractor tests

Limitations

โš ๏ธ Important

AI provides guidance, not legal advice. For specific situations, disputes, or binding decisions:

  • Check the Fair Work Ombudsman website (fairwork.gov.au)
  • Use the FWO Pay Calculator for official rates
  • Consult an employment lawyer for complex cases

Free Fair Work Skill

Our Fair Work skill is free and open source. Works with Claude Code, Cursor, ChatGPT, and OpenClaw.

Get Fair Work Skill โ†’