NSW has become the first Australian state to regulate digital health and safety risks in the workplace. On 12 February 2026, NSW Parliament passed the Work Health and Safety Amendment (Digital Work Systems) Bill 2026 to amend the Work Health and Safety Act 2011 (NSW). This marks a significant shift in digital transparency for businesses.
While we are increasingly using digital work systems to be more productive, efficient, and innovative, AI can become a workplace hazard – therefore, this Bill is aimed at protecting workers in the digital age.
The Minister for Industrial Relations Sophie Cotsis said: “If a system tracks you, times you, and pushes you beyond safe limits – it’s not innovation, its exploitation.”
The following changes to the WHS Act will be made:
- Inclusion of definition of digital work system to mean ‘an algorithm, artificial intelligence, automation or online platform’
- Section 19 duty of care extended to protecting the health and safety of workers from use of digital work systems by the business or undertaking
- Introduction of section 21A that gives rise to duties of persons conducting businesses or undertakings (PCBUs) involving digital work systems to ensure that workers’ health and safety are not put at risk from allocation of work by a digital work system used by the business or undertaking.
- PCBUs must consider the following risks in using AI for allocation of work:
- Excessive or unreasonable workloads for workers
- The use of excessive or unreasonable 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 business conduct
The amendments also require that employers provide WHS entry permit holders with “reasonable assistance” to access and inspect a digital work system for suspected contravention.
The Bill is in response to recommendations of the Select Committee on the Impact of Technological and Other Change on the Future of Work and Workers in NSW relating to the impacts of digital systems on worker psychosocial health. The Bill encourages responsible use of digital work systems and culture of prevention.
Employers should ensure that if they are using AI in their business that the risks are being managed appropriately and they are complying with the new WHS duties – for example, that technologies are not allocating work excessively or favouring some workers over others.
Employers should assess how they can respond to and provide access to permit holders, evaluate risks of automated decision-making and monitoring systems, update risk assessments and safeguards, and consult with workers about work allocation and job clarity.
With the amendments introduced by the Digital Work Systems Bill, employers should ensure that they are not in contravention of new WHS obligations.
OpenLegal Services
At OpenLegal, our team can assist with ensuring that your digital work system comprehensively considers and responds to the risks to workers associated with using automated systems in the workplace. To further discuss, please contact us at enquiries@openlegal.com.au or 1300 337 997.
Anneka Tan, Intern at OpenLegal
