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AI in hiring: what rights do job seekers have?

More than four decades ago, JobWatch was established to challenge misleading job advertisements and unfair recruitment practices. Technology has changed with the use of AI in hiring, but the fundamental issue of power imbalance has not.

February 27, 2026

A recent report in The Age, Computer says no: AI vetting rejects job hunters in record time, has highlighted growing frustration among job seekers who suspect automated systems are screening out applications within hours. As employers increasingly use artificial intelligence to sift through CVs, conduct text-based interviews and rank candidates, questions are being raised about transparency, accountability and the risk of discrimination.

The news report has cited industry representatives estimating that a large number  of medium and large employers now incorporate AI tools into at least part of their hiring process. These systems may scan resumes for keywords, score responses to written questions, or conduct structured chatbot-style interviews before a human recruiter reviews the application.

Under current Australian law, there is generally no requirement for private sector employers to disclose when AI or automated systems are used in recruitment. Nor is there a clear obligation to explain how those systems assess or rank candidates.

Anti-discrimination laws at both federal and state level prohibit adverse treatment on the basis of protected attributes such as age, disability, race, sex and family responsibilities. However, these laws typically require the person bringing a complaint to establish that discrimination occurred. (In contrast, the general protections in the Fair Work Act 2009 require the employer to prove that adverse action, including refusing to employ a candidate, was not taken because of a protected attribute.)

When decisions are influenced by complex and proprietary algorithms, understanding how and why a rejection occurred becomes significantly harder. If a candidate believes they have been unfairly overlooked, they may have little visibility over the criteria used to assess them or the data relied upon. Without access to that information, proving discriminatory treatment can be extremely difficult.

Beyond discrimination concerns, job seekers face significant privacy questions. When you submit an application through an AI recruitment platform, where does your personal information go? How long is it retained? Who has access to it? What inferences are drawn from your video interview, your voice, or your facial expressions? What can this biometric data be used for?

Under the Privacy Act 1988 (Cth), job seekers who apply to organisations covered by the Australian Privacy Principles do have certain rights, including the right to know what personal information is held about them, how it’s used, and who it’s disclosed to. However, these rights may be difficult to exercise in practice when dealing with complex AI systems.

The AI Ethics Principles developed by the federal government are voluntary and not legally binding. While they provide guidance on responsible AI use, they do not create enforceable obligations for employers using AI in recruitment.

As Victoria heads toward a state election later in the year, workplace surveillance and AI are firmly on the government’s legislative agenda, but the focus is on existing employees, not job seekers. Proposed reforms following the parliamentary inquiry into workplace surveillance aim to strengthen oversight of monitoring practices in the workplace.

At the federal level, the National AI Plan sets out voluntary guardrails for responsible AI adoption and includes funding for an AI Safety Institute. While these developments signal growing attention to AI in employment contexts, they do not establish specific, enforceable rules governing the use of AI in recruitment.

Job seekers may find themselves in a regulatory gap. While existing anti-discrimination and privacy laws apply, many workplace-specific protections addressing monitoring and decision-making are designed for employees, not prospective employees/applicants. Yet the decisions made at this stage can determine access to income, career progression and economic security.

 

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