Australia's First AI Workplace Law Is Now in Force: What NSW Workers Need to Know
What Just Happened: NSW Passes Australia’s First AI Workplace Safety Law
More than 2,000 ABC staff walked off the job in March 2026, and AI protections were at the top of their demands. But weeks before that strike made headlines, NSW had already passed the law those workers were fighting for.
On 13 February 2026, the NSW Parliament passed the Work Health and Safety Amendment (Digital Work Systems) Bill 2026. It received royal assent on 18 February, making NSW the first Australian state to regulate how employers use AI and algorithmic tools in the workplace.
The law amends the Work Health and Safety Act 2011 (NSW) to create a new duty: employers must ensure that digital work systems do not put workers’ health and safety at risk. This covers everything from AI-powered scheduling algorithms to automated performance monitoring and workplace surveillance tools.
For workers in hospitality, retail, warehousing, and gig roles where algorithmic rostering and performance tracking are already common, this is a significant new protection.
What Is a “Digital Work System”? The 4 Categories Now Regulated
The Act defines “digital work system” broadly. It captures any technology-based system used to manage, monitor, or direct workers. Based on the legislation and published legal analyses, four key categories fall within scope:
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AI scheduling and rostering algorithms that assign shifts, calculate staffing levels, or adjust rosters automatically. If an algorithm is deciding when you work, it is now regulated.
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Automated performance monitoring including systems that track keystrokes, measure task completion speed, score productivity, or flag workers based on algorithmic benchmarks.
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Workplace surveillance tools such as GPS tracking, camera monitoring tied to AI analytics, screen recording, and biometric scanning used to evaluate worker behaviour.
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Algorithmic decision-making that affects workers directly, including systems that determine pay rates, allocate work, issue warnings, or recommend termination based on data models.
The definition is deliberately technology-neutral. It does not matter whether the system uses machine learning, rule-based automation, or a combination. If it manages or monitors workers through digital means, the new duty applies.
What Your Employer Must Do Under the New Law
The Act creates a positive duty on “persons conducting a business or undertaking” (PCBUs), meaning employers must take proactive steps rather than simply reacting to problems.
Under the new framework, employers in NSW must:
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Identify risks created by digital work systems, including excessive workloads generated by algorithmic scheduling, unrealistic performance targets set by automated systems, and psychological harm from constant monitoring.
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Consult workers before introducing or significantly changing digital work systems. Workers and their health and safety representatives have a right to be informed about how these systems operate and how they affect work conditions.
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Implement controls to eliminate or minimise risks. This could mean adjusting algorithm settings, setting minimum rest periods that override scheduling AI, or limiting the scope of automated surveillance.
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Review and monitor digital work systems on an ongoing basis to ensure they remain safe as technology evolves or workloads change.
For employers, this represents a genuine compliance obligation. SafeWork NSW is expected to publish detailed guidelines, though these had not been issued at the time of writing. Inspector access powers will take effect one month after the guidelines are published.
How This Protects You: Excessive Workloads, Unfair Metrics, and Surveillance
This law directly addresses three problems that Australian workers have been raising for years.
Algorithmic overwork. If an AI rostering system schedules you for back-to-back shifts without adequate rest, or consistently assigns more tasks than a person can reasonably complete, your employer now has a legal duty to fix it. The algorithm is no longer an excuse.
Unfair performance metrics. Automated systems that set unrealistic targets, penalise bathroom breaks, or score workers based on metrics they cannot control are now subject to WHS scrutiny. If the system creates psychological harm or unreasonable pressure, the employer must address the risk.
Excessive surveillance. Constant GPS tracking, keystroke logging, and AI-analysed camera footage can create significant psychological stress. The law recognises that surveillance, even when technically legal, can become a workplace health and safety issue if it is disproportionate or poorly managed.
Workers do not need to prove they have been harmed. The duty is preventive: employers must identify and control risks before harm occurs.
Penalties: Up to $2.3 Million and 10 Years Imprisonment
The Digital Work Systems Act applies the existing WHS penalty framework, which means breaches carry serious consequences.
| Breach Category | Maximum Penalty (Individual) | Maximum Penalty (Body Corporate) |
|---|---|---|
| Category 1 (reckless conduct causing risk of death or serious injury) | $700,000 or 10 years imprisonment | $2.3 million |
| Category 2 (failure to comply with duty, exposing to risk) | $350,000 | $1.2 million |
| Category 3 (failure to comply with duty) | $70,000 | $350,000 |
Category 1 penalties are reserved for the most serious breaches where an employer recklessly exposes workers to the risk of death or serious injury through their use of digital work systems. While this threshold is high, the inclusion of digital systems within the WHS framework means prosecutors can now pursue these penalties where algorithmic management causes genuine harm.
How to Raise a Concern If AI Tools Are Affecting Your Work
If you believe a digital work system at your workplace is creating health or safety risks, you have several options under NSW law:
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Raise it with your Health and Safety Representative (HSR). Every workplace with five or more workers can establish an HSR. They have the right to investigate concerns and request information from the employer about how digital systems operate.
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Report to SafeWork NSW. You can lodge a complaint with the regulator directly. SafeWork NSW inspectors will have specific powers to investigate digital work system compliance once their access powers commence (one month after guidelines are published).
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Document the impact. Keep records of how the system affects you: screenshots of unrealistic targets, records of shifts that violate rest periods, or notes on surveillance practices that cause stress. Specific evidence strengthens any complaint.
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Contact your union. If you are a union member, your union can raise digital work system concerns during enterprise bargaining or through formal WHS processes. The ABC strike demonstrated that AI protections are becoming a standard bargaining demand in 2026.
You are protected from retaliation for raising WHS concerns. It is unlawful for an employer to discriminate against a worker who raises a legitimate health and safety issue about any system, including digital ones.
Will Other States Follow? The National Picture
NSW has moved first, but the question is whether other states and the Commonwealth will follow.
The federal government has signalled interest in AI regulation through its voluntary AI Safety Standard (published in 2024) and the National AI Centre’s ongoing work. However, no federal workplace-specific AI legislation has been introduced as of April 2026.
Several factors suggest other jurisdictions may adopt similar laws:
- The ABC enterprise bargaining dispute has made AI workplace protections a national conversation.
- Unions across multiple states are pushing for algorithmic management to be included in WHS frameworks.
- Victoria’s recent work-from-home legislation shows states are willing to act independently on emerging workplace issues.
- The Fair Work Commission’s Modern Awards review has begun examining how technology affects award compliance.
For workers outside NSW, the existing WHS general duty of care may offer some protection, but it has not been tested specifically against digital work systems. NSW’s explicit legislation removes that ambiguity.
What This Means for You
Australia’s first AI workplace safety law is not abstract regulation. It is a practical tool for workers who are managed, monitored, or evaluated by algorithms every day.
If you work in NSW, your employer now has a clear legal obligation to ensure the technology they use does not harm you. If you work in another state, this law sets the benchmark for what is coming.
Understanding your rights is the first step. Checking whether your employer is meeting their obligations is the next.
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