Employee Uploads Confidential Information to GenAI Platform: ERA Clarifies the Risks
Employee QTR had breached t obligation around confidentiality requirement in employment agreement by uploading, copying, or pasting confidential and commercially sensitive information into a GenAI platform when preparing information for a disciplinary investigation.
A document used by employee for the disciplinary investigation contained “hallucinated” legal cases purporting to establish employment law principles that were either non‑existent or incorrectly cited.
The Authority was satisfied, on the balance of probabilities, that the employee had breached this confidentiality company information obligation by uploading, copying, or pasting confidential information into a GenAI platform. Given the nature of the material involved and the risks associated with further disclosure, the Authority considered it both justified and necessary to issue a compliance order to prevent recurrence.
The Employment Relations Authority also reminded the employee of the need to exercise care when using AI tools in tribunal and court proceedings. It referred the employee to the Guidelines for Use of Generative Artificial Intelligence in Courts and Tribunals - Non‑lawyers, which emphasise that parties must not enter private, confidential, suppressed, or legally privileged information into AI platforms
What next?
Employers should review and strengthen their AI policies immediately, clearly prohibiting the upload of confidential information into public GenAI tools, reinforcing confidentiality obligations, and ensuring human oversight of any AI-assisted work, particularly in investigations or disciplinary processes.
If you have questions, our team is happy to help, and we also have an AI policy template available for purchase at member pricing for organisations looking for a practical starting point. You can get in touch at hradvice@businesscanterbury.co.nz or you can find our contact details here.
I’m passionate about helping businesses build healthy, supportive workplaces where people thrive. From offering practical HR consultancy to running training sessions and sharing insights through blogs, I’m here to make HR simple and effective for our members.