New South Wales government passes nation-first work health and safety obligations for digital work systems

At a glance

• On 12 February 2026, the NSW Government passed the Work Health and Safety Amendment (Digital Work Systems) Bill 2025 (Bill) which amends the Work Health and Safety Act 2011 (NSW) (WHS Act).
• NSW will become the first Australian jurisdiction to impose specific duties on employers relating to the emergence of digital work systems in the workplace, with a focus on workers' health and safety. 

Reforms to work health and safety obligations 

The Bill amends the WHS Act to include protections around 'digital work systems', defined as 'an algorithm, artificial intelligence, automation or online platform' in the workplace, to ensure systems do not risk workers' health and safety. These guardrails give effect to recommendations of the 2022 NSW Select Committee on the Impact of Technological and Other Change on the Future of Work as well as federal and state Parliamentary inquiries to strengthen digital safety and address associated psychosocial risks for workers.

This forms part of broader workplace health and safety reforms introduced by the NSW government aimed at preventing workplace injury, supporting injured workers and improving long-term social and economic outcomes for businesses and employees. The specific reforms will extend WHS obligations to the use of digital work systems in the workplace and transform workplace practices to address and mitigate potential hazards arising from the emerging technologies. 

The following reforms are set to be implemented: 

• Establishing a primary duty of care and obligation on persons conducting a business or undertaking (PCBU) to ensure that the health and safety of workers is not put at risk by using digital work systems.
• Imposing duties on PCBUs using digital work systems to consider risks to workers associated with:
  • Excessive or unreasonable workloads.
  • Use of excessive or unreasonable metrics to assess and track performance. 
  • Excessive or unreasonable monitoring or surveillance of workers.
  • Unlawful discriminatory practices or decision-making.
• Conferring rights on WHS entry permit holders (such as unions) to access and inspect digital work systems of PCBUs (in the context of a suspected contravention).
• Creating an obligation on the regulator (SafeWork NSW) to issue and publish guidelines about the power of WHS entry permit holders.
• Introducing ministerial review obligations to ensure the reform objectives relating to the Model Work Health and Safety Laws remain valid, appropriate, and provide a higher standard of protection for workers.
• Imposing penalties for PCBU's failing to comply with a requirement to provide a WHS entry permit holder with assistance to access and inspect a digital work system of 121 penalty units (AUD13,310) for an individual or 607 penalty units (AUD69,980) for a corporation.

As a result of additional amendments, the Bill now imposes certain limitations on WHS entry permit holders as follows:

• Permit holders are prohibited from exercising the powers granted by the Bill for a month following SafeWork NSW publishing the relevant guidelines.
• Permit holders are required to provide businesses with a minimum of 48 hours' notice before exercising powers under the legislation.
• A statutory review of the legislation is to be conducted after 12 months of implementation, and a report following 18 months later. 

Employer considerations 

Employers should:

• Monitor any subsequent guidance issued by SafeWork NSW regarding the practical operation of the new reforms.
• Identify and assess (including by way of risk assessment) the current and future use of digital work systems.
• Update policies and procedures relating to work health and safety obligations and dealing with access and inspection requests by entry permit holders. 

As a result of the Bill passing, NSW will be the first Australian state or territory to legislate the use and monitoring of digital work systems.