A controversial bill that would allow trade union representatives to investigate business digital platforms and AI tools is facing a showdown in the NSW Parliament. The proposal is at odds with supporters who want workplace safety to keep up with advances in new technology and critics who label it an invasion of privacy and a red tape for employers.
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minns govt. Occupational Health and Safety Amendment (Digital Work Systems) Bill 2026 On Thursday, the Legislative Council moved closer to voting on whether the landmark proposal should become law.
Here’s what employers need to know about this bill and what its passage means for businesses in the state.
What is it?
The bill, introduced in November by NSW Industrial Relations Minister Sophie Kossis, Work Safety and Health Act 2011 (WHS Act) Protect workers from harm caused by digital systems used in the workplace.
It calls on employers to ensure that workers are not harmed by “digital work systems” such as artificial intelligence tools, algorithms, workplace automation and other online platforms.
These potential harms include excessive workloads, metrics, or performance evaluations created by digital work systems, which pose unacceptable risks to physical or mental health.
Citing warehousing and logistics as an example, Kocsis said, “The technology is being used to increase productivity to the point where it poses risks and dangers to the mental and physical health and safety of workers.”
NSW Treasurer Daniel Moohey also raised concerns about the gig economy, claiming digital platforms were directing rideshare drivers and couriers to make illegal U-turns and park in no-stop zones.
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Importantly, the bill calls for an immigration permit holder, a union official or employee, to be authorized to investigate suspected violations of rules. WHS law — Access and inspect digital work systems that raise workplace safety concerns.
If passed into law, it would create Australia’s first power for trade union representatives to assess the digital tools companies use to run their operations.
Employers who refuse to cooperate with such investigations may be subject to court-ordered penalties.
What are the critics saying?
Industry groups have widely opposed the measure, fearing that access to companies’ digital systems could allow union representatives to “go fishing” for sensitive information.
In a new joint statement, major industry bodies, including the Australian Council of Small Business Associations, said the bill “creates far-reaching new access rights with weak guardrails and significant unintended consequences”.
It will impact “housing construction, major infrastructure, energy and resource projects where complex digital systems are central to their operation”.
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This “increased risk, uncertainty and delay directly undermines housing supply and investment decisions”.
Earlier this month, Business NSW CEO Daniel Hunter raised concerns that the regulations could subject employers to excessive compliance checks.
“Companies need less red tape, if not more. But this bill imposes significant new compliance burdens on businesses without meaningful safety improvements for workers,” he said.
What are the supporters saying?
Speaking in the House of Lords last night, NSW Finance Minister Muhey said the bill would ensure people “work for people, not computers”.
He rejected claims that the bill would allow “fishing expeditions” and said the exact type of information available to entry permit holders would be subject to regulatory approval.
“Permit holders cannot use the work system to go on fishing expeditions. It must be related to the alleged violation,” he said.
“The regulator will hold a public consultation on what the guidelines will be.
“The fanciful proposal of permit holders making changes to digital systems is just that – fanciful.”
NSW Labor announced its own support for the bill on Thursday, with General Secretary Mark Morley arguing that artificial intelligence was “dangerously enhancing work” and merited further scrutiny.
Speaking more broadly about digital platforms, Morley said: “When algorithms determine working hours, pay and the pace of work, workers deserve clear rules and real protections.”
Where is my bill now?
The bill passed the House on Thursday and was sent to the Senate later that night.
Discussion continued until the 10pm deadline and will remain in place over the weekend.
Proceedings are expected to resume on Tuesday when the NSW Parliament is scheduled to reconvene.
