Despite sustained advocacy from AREEA and other business groups, the Work Health and Safety Amendment (Digital Work Systems) Bill 2025 passed the NSW Legislative Council on 12 February, with several amendments. 

While some limited safeguards were introduced, the legislation represents a significant expansion of WHS obligations and union right-of-entry powers into employers’ digital systems. 

With no privacy obligations or other checks and balances, employers are concerned there is little in the bill that prevents misuse of sensitive information.  

This is particularly relevant in light of ongoing scrutiny of the CFMEU administration and allegations of criminal behaviour. 

Below is a summary of the key changes as passed.  

‘Digital work system’ broadly defined  

Once enacted, the bill will define a ‘digital work system’ as ‘an algorithm, artificial intelligence, automation or online platform.’ 

This broad definition extends beyond emerging AI tools and could capture everyday digital work tools such as HR systems and document management platforms, payroll systems, email platforms, performance management systems, employee complaints databases and other commercially sensitive or security-critical systems.  

PCBUs (businesses) will be subject to a new duty to ensure, so far as reasonably practicable, that workers’ health and safety is not put at risk from the allocation of work by a digital work system.  

‘Risks’ may include excessive or unreasonable workloads; unreasonable performance metrics; excessive or unreasonable monitoring or surveillance; or unlawful or discriminatory decision-making. 

Combined, these changes expressly integrate digital workforce allocation and monitoring practices into primary WHS duties, expanding the scope of compliance exposure for businesses using algorithmic or automated systems. 

Union access to digital systems 

One of the most controversial changes is a new obligation requiring PCBUs to provide WHS entry permit holders (often union officials) with ‘reasonable assistance’ to access and inspect digital work systems relevant to a suspected contravention. 

The only express limitation is where providing access would contravene another law.  

With such powers sitting alongside existing WHS entry rights, business advocates including AREEA have expressed concern at this seemingly unprecedented expansion of union access into potentially sensitive digital infrastructure. 

At the very least, the changes extend such entry and access rights to cover digital environments that were not previously subject to inspection in this manner. 

Employers in NSW will soon need to manage potential access to payroll, HR, performance and email systems while navigating privacy, confidentiality, cybersecurity and contractual constraints.  

Amendments provide some guardrails, but not enough 

After significant representations from the business community, including AREEA, crossbench members of the Shooters, Fishers and Farmers Party and the Animal Justice Party in the NSW Legislative Council moved amendments introducing some limited safeguards: 

• Regulator guidelines required – SafeWork NSW must issue and publish guidelines governing how the new access powers operate. 

• Public consultation – The regulator must consult publicly before issuing those guidelines. 

• No access until guidelines published – Permit holders cannot exercise the new powers until the guidelines are in place. 

• Minimum notice period – At least 48 hours’ notice (and no more than 14 days) must be given before seeking access. 

• 12-month statutory review – The Minister must review the provisions after 12 months to assess whether they remain fit for purpose and whether adverse outcomes have arisen. 

While these amendments are important, AREEA remains concerned that guideline-based constraints do not provide sufficient certainty or protection in relation to privacy, cybersecurity, intellectual property and commercially sensitive information.  

Further, it’s anticipated disputes will emerge over scope and what constitutes reasonable assistance once those guidelines are issued. 

Implications for employers 

AREEA will actively engage in the forthcoming consultation process to push for practical, workable and proportionate guardrails to be embedded in the regulator’s guidelines.  

A key concern will be ensuring that our NSW members can maintain their commercial security, operational integrity and digital system protections. 

The broader issue is precedent, with fears the laws may become a model for similar amendments in other jurisdictions, expanding WHS exposure nationally. 

Immediate risk management  

Employers should not treat this as a purely legislative development. Preparatory steps are advisable now. 

Key actions include: 

• reviewing digital allocation tools, AI-enabled systems and performance frameworks to ensure they are proportionate, defensible and supported by documented WHS risk assessments; 

• assessing whether psychosocial hazards arising from workload intensity, automated management or performance monitoring have been formally identified and mitigated; 

• developing internal protocols for responding to WHS entry permit holder access notices; 

• strengthening data governance, access controls and cybersecurity safeguards; and 

• preparing to engage in regulator consultation processes on implementation guidelines. 

Failure to prepare may expose businesses not only to regulatory enforcement risk, but also to operational disruption and potential compromise of commercially sensitive information. 

For AREEA members (particularly those operating complex, technology-enabled and safety-critical workplaces) the migration of digital workforce management into the WHS enforcement sphere represents a substantive change in risk profile. Proactive governance and clear internal controls will be essential to managing that exposure. 

For further information or to discuss options for your organisation, please contact [email protected] 

The Bill as passed by both Houses is available here with the full history here.