Unions, businesses concerned over bill to regulate workplace digital systems

NSW may become the first Australian state to regulate digital systems in the workplace; however, unions and the business lobby are warning of potential risks.

Late last year, the Minns government in NSW introduced the Digital Work Systems Bill, which would reform existing work, health and safety laws, and ensure that digital work systems do not lead to unsafe workloads, unreasonable performance tracking, excessive surveillance or discriminatory work allocation.

The legislation stems from a 2022 parliamentary inquiry into work practices in the digital future, and if passed, would give unions access to digital work systems around the state.

The Minns Labor government said proposed changes to the work health and safety laws will safeguard the wellbeing of workers while harnessing digital work systems to “boost efficiency and unlock creativity, drive productivity, innovation and job opportunities”.

Changes include classifying digital work systems as a “system of work’ therefore requiring employer management like any other workplace hazard, and addressing excessive digital tracking, which can lead to stress and burnout.

However, unions and business groups are concerned about the proposed reforms.

Opposing representative groups include the Australian Resources & Energy Employer Association, Australian Industry Group, Business Council of Australia, Minerals Council of Australia, and Tech Council of Australia.

According to unions and advocates, the reforms would pose a risk of data leaks, disrupted work and compromised housing delivery and related projects. The unprecedented access to workers’ sensitive information – such as HR and payroll systems, rostering tools, customer databases, financial records, health information and communication records – forms the basis of their opposition.

Unions argue that this legislation, which would apply to workplaces across NSW, including small retailers, hospitals, and government agencies, does not provide assurance or appropriate guardrails. According to the groups, work health and safety laws already cover unsafe workloads, rostering practices, surveillance, and worker protections.

The impact, they believe, would be on small businesses that may face penalties if they hesitate or seek advice before granting access, and infrastructure and resources projects, where the flow-on consequences to housing would be considerable.

Minister for Industrial Relations Sophie Cotsis said: “The Minns Labor government is committed to strengthening a culture of prevention, early intervention, recovery, and effective return to work through a series of reforms.”

“This is about protecting workers’ mental health, preventing harm before it occurs, and giving everyone confidence that workplace technology is used responsibly.”

The joint statement seeks clarity and urges against rushing the Bill through the houses.