In brief
There has been an increas of Claim Letters from employees that are clearly generated using AI. Employers are increasingly receiving Claim Letters that are linguistically persuasive, appear to be legally sound, and contain numerous claims. The challenge for employers is to correctly assess these letters and respond appropriately.
Key takeaways
- The fact that AI-generated letters may be lengthy, unstructured, legally flawed, or unclear does not preclude them from effectively asserting claims against employers.
- A general rejection to address AI-generated Claim Letters is not recommended. Only in certain cases can the processing of AI Claim Letters be rejected upfront.
- Consequences under labor law—including termination—are possible as a result of AI-generated Claim Letters, particularly in cases where such letters are clearly unjustified.
In detail
How can AI-generated Claim Letters be identified?
Claim Letters drafted with the help of AI are often well-structured and linguistically impressive. They sometimes give the impression of coming from legal counsel, but can be created by employees in a matter of minutes "at the click of a button." As a result, they can appear intimidating and seemingly legally sound at first glance.
Upon closer examination, however, such letters often contain completely inaccurate legal arguments, mix legal systems (e.g., German, Austrian, and Swiss regulations), cite non-existent grounds for claims, or contain calculation errors. Furthermore, the wording sometimes fails to clarify either the specific claim or the employee's legal position. AI-generated Claim Letters therefore significantly increase the effort required to review them, even for colleagues with legal training. Whether the alleged claims actually exist can only be reliably assessed through a careful legal review.
Can employers refuse to process AI-generated Claim Letters upfront?
No, employers should not refuse to process Claim Letters upfront simply because they were obviously generated using AI.
Claim Letters received by employers should be reviewed from a legal perspective, regardless of whether they appear to have been generated using AI or were drafted by the employee(s) themselves. This is because even if AI-generated demand letters are not legally correct or are partially unclear, employees can still effectively assert claims against the employer through such letters if the nature of the claim is at least recognizable to the employer. An upfront refusal to address AI-generated Claim Letters is therefore not recommended.
An exception applies if neither the claim being asserted nor the employee's legal position is clearly identifiable in the AI-generated letter. In this case, processing the Claim Letter may be refused following a basic review.
Can employees who draft AI-generated Claim Letters be terminated?
Yes, terminating employees who draft AI-generated Claim Letters is possible, largely risk-free under certain circumstances, namely, when it is clear from the letter itself that no genuine claim can exist (prohibition of harassment). Asserting such obviously unjustified claims also does not trigger statutory protection against termination due to an illegal motive. If employees repeatedly send Claim Letters which are exclusively AI-generated and are clearly unjustified and without substance, thereby causing harm to the employer (for example, because the effort required to review them results in significant costs, such as for legal counsel), this may constitute a breach of the duty of loyalty and serve as grounds for termination.
If, on the other hand, the employee asserts a potentially valid claim via an AI-generated Claim Letter (e.g., payment of a bonus or overtime pay), termination in response to such a letter would be based on an illegal motive and could therefore be challenged. This is also the case if the AI-generated Claim Letter is not precise in its content, legally incorrect, or significantly longer than a letter the employees would have written themselves.
Furthermore, a termination of the employee is permissible if the employee drafts such letters (despite being prohibited from doing so) during working hours or using company resources which may not be used for personal matters. In this case, the employee violates both their duty of loyalty and specific instructions of the employer.
Must employees expect further consequences under labor or civil law in addition to termination?
Yes, by sending AI-generated and obviously unjustified Claim Letters, the employee may violate their obligations under labor law—in particular, their duty of loyalty to the employer—and become untrustworthy, which is why they must expect consequences under labor law, such as a warning or, in serious cases, even immediate termination.
If the employee "floods" the employer with obviously unjustified AI-generated demand letters with the aim of causing harm to the employer (e.g., out of revenge or dissatisfaction), a claim for injunctive relief or for damages may also be possible. In such cases, the employer's damages may consist, in particular, of the costs associated with the additional effort required to review such Claim Letters or to seek legal advice.
Are limitation or expiration periods interrupted by the submission of AI-generated Claim Letters?
Yes, even AI-generated Claim Letters can interrupt limitation or expiration periods (i.e., time limits within which claims can be enforced or remain valid), provided that the nature of the employee's claim is at least recognizable to the employer. However, AI-generated Claim Letters that are not sufficiently specific—that is, those from which neither the nature of the claims nor the legal basis on which the employees rely can be recognized—cannot interrupt the limitation or expiration periods.
What response to AI-generated Claim Letters should be avoided?
Employers should, in particular, avoid (i) acknowledging claims without reviewing them, (ii) making hasty settlement offers, (iii) refusing to address AI-generated Claim Letters altogether, (iv) terminating employees solely on the basis of the content of individual AI-generated Claim Letters, or (v) allowing managers to respond without consulting HR or Legal. This is particularly important in cases involving sensitive allegations related to discrimination or harassment.
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