In an Australian first, the NSW Parliament has passed legislation to clarify employer duties to address risks that present when using digital systems (defined as “an algorithm, artificial intelligence, automation or online platform”) and represent a shift in how technology is regulated under Work Health and Safety laws.
The Work Health and Safety Amendment (Digital Work Systems) Act 2026 amends the Work Health and Safety Act 2011 (NSW) (WHS Act) by introducing specific duties on a person conducting a business or undertaking (PCBU) and expanding the rights of WHS entry permit holders in relation to digital work systems.
The Act requires PCBUs "to ensure, so far as is reasonably practicable, that the health and safety of a worker is not put at risk from the allocation of work by a digital work system".
"If PCBUs delegate tasks to an algorithm which creates harm, the Act clarifies that managers are responsible for the human impact," NSW State Work Health and Safety Minister Sophie Cotsis said.
The Act will require PCBUs to consider whether the allocation of work by or using a digital work system creates or result in any of the following risks:
- Excessive or unnecessary workloads for workers at work in the business or undertaking
- The use of excessive or unreasonably metrics to assess and track the performance of workers at work in the business or undertaking
- Excessive or unreasonable monitoring or surveillance of workers at work in the business or undertaking
- Unlawful discriminatory practices or decision-making in the conduct of the business or undertaking
The Act also enables WHS entry permit holders (the NSW equivalent of ARREOs) to require the PCBU to provide reasonable assistance to access and inspect a digital work system relevant to a suspected contravention.
Last minute changes to the Amendment impose a requirement that ARREOs provide 48 hours’ notice to the PCBU before conducting an inspection of digital work systems and comply with access guidelines to be developed by the regulator SafeWork NSW. The right of entry reforms will not be activated until the guidelines are in place.
Unions NSW secretary Mark Morey applauded the passage of the Digital Work Systems Bill, describing it as a "breakthrough for hundreds of thousands of workers".
“The legislation addresses critical health and safety gaps identified by parliamentary inquiries, pertaining to work intensification and psychological risks associated with automated decision-making,” Morey said.
"These laws ensure that when an algorithm decides your hours, your pay, or your pace of work, there are clear rules and real human oversight to prevent harm," he said.
"Despite hyperbolic claims from business lobbyists, these laws are based on a very reasonable principle: technology should serve the workforce rather than exploiting it.
"Any business using these tools responsibly has nothing to fear from these new safety standards," said Mr Morey.