NSW’s new digital work systems laws: what businesses need to know

In February this year, the NSW Parliament passed the Work Health and Safety Amendment (Digital Work Systems) Bill 2025, introducing significant new obligations for businesses that use digital systems to allocate, monitor and manage work.

An Australian-first, the Digital Work Systems are among the more significant recent changes to WHS laws in NSW. Once in effect, the laws will:

(a) make clear that a business’ WHS obligations extend to risks created by digital work systems, including AI and algorithmic management tools.

(b) crucially, will allow permit holders access to a business' digital systems when they suspect that the PCBU is breaching the WHS Act and/or Regulations.

While it is easy to see how the legislative changes will impact employers who run shift or gig-based businesses and who rely heavily on digital systems to do so, all businesses should be aware that their reliance on digital systems may expose workers to both physical and psychosocial risks, including stress and fatigue associated with digital monitoring of work.

Consultation on the new guidelines is now underway

Permit holders' access to employers' digital systems under the new laws will be governed by guidelines to be issued by SafeWork NSW.

SafeWork is required to publicly consult on the guidelines and businesses should strongly consider engaging in the consultation process, particularly given that:

(a) permit holders can seek access to digital systems with as little as 48 hours' notice,

(b) permit holders may harbour a low threshold for "suspecting" a contravention,

(c) the digital systems may include or be otherwise entangled with confidential, private, sensitive and/or proprietary information that employers may be otherwise legally required to protect, and

(d) your digital systems may be used across jurisdictions with different legislative (such as privacy and freedom of information) schemes.

As a result, PCBUs may face significant practical, timing and financial challenges in complying with the new access regime. Businesses may need to review and potentially update their IT and procurement systems, data management and record-keeping practices, and any current or proposed restructuring activities. It may also take time to implement any necessary changes and provide permit holders with the assistance required to operate relevant digital systems under the Act.

What should businesses do now?

The key amendments will not commence until at least one month after SafeWork NSW finalises the relevant guidelines. However, given the practical complexities and uncertainty surrounding how the new laws will operate in practice, businesses should consider whether they wish to make submissions to SafeWork on what should be included and excluded from the guidelines.

You can register with SafeWork to be formally consulted in respect of the guidelines here.

Lander & Rogers’ employment and workplace experts will be holding information sessions and roundtables to discuss the new provisions and the significant shift we anticipate they will bring to WHS compliance obligations in NSW. We will continue to keep you informed as these matters develop with client updates and Q&A sessions.