NSW’s Digital Work Systems Bill
In February 2026, the NSW Government passed its Work Health and Safety Amendment (Digital Work Systems) Act 2026, becoming the first state in Australia to address how technology is shaping modern work. The changes recognise a simple reality: technology is no longer just supporting work it is increasingly starting to manage it alongside humans.
From AI powered rostering and scheduling tools to algorithm-driven performance tracking, digital systems are increasingly influencing how work is allocated, monitored and evaluated across many businesses. While these tools can improve efficiency and productivity, they can also introduce new risks that can affect the work health and safety of workers if they are not properly managed. The new amendment makes it clear that these risks must be treated and managed in the same way as any other workplace hazard. (Source: NSW Government)
Why Does This Matter?
According to the NSW Government, 366 total incidents were reported, including 7 fatalities among gig economy workers who mostly receive work instructions through apps or platforms, highlighting the need for action. (Source: NSW Government)
Digital systems are no longer seen as neutral tools. Instead, they actively shape how work environments are managed and can introduce risks when businesses fail to manage them properly. These amendments reinforce a simple principle: every form of work must be safe regardless of whether a person or system directs it.
What are Digital Work Systems?
According to the legislation, digital work systems are defined as technologies such as an algorithm, artificial intelligence (AI), automation or an online platform that are used to manage or influence work through automated or data driven processes. (Source: NSW Government)
This could involve, but is not limited to, systems used for scheduling or rostering work, performance monitoring or tracking worker activity, warehouse management systems, AI screening tools that screen job applications and customer service software that monitor productivity.
What has Changed?
The amendments introduced to the Work Health and Safety Act 2011 (NSW) under this Act includes:
Expanded duty of care for Persons Conducting a Business or Undertaking (PCBUs) to ensure as far as reasonably practicable that digital systems do not create health and safety risks for workers.
PCBUs must consider whether work allocated by or using a digital system result in any of the risks to the work health and safety of a worker.
WHS entry permit holders (EPHs) now have a new power to request reasonable help so they can access and inspect digital work systems when they suspect a breach of the WHS Act, and this power must be used in line with the DWS Guidelines.
(Source: NSW Government)
What are The Risks Defined in the Act?
The Act highlights four key areas where risks can arise from the use of digital work systems. This includes:
1. Excessive workloads
Automated systems can unintentionally create excessive or unreasonable workloads for workers. This can in turn increase the likelihood of stress, burnout and fatigue in workers.
2. Unrealistic performance monitoring metrics
Heavy reliance on data-driven targets and constant measurement can create pressure to meet unrealistic targets that may not be achievable in practice, resulting in workers feeling pressured or under stress.
3. Excessive monitoring or surveillance
Continuous tracking might feel intrusive and can impact worker wellbeing, especially if it lacks transparency or a clear purpose.
4. Lack of transparency in decision-making
When decisions are made by algorithms, workers might not fully understand how the outcomes were determined, which can lead to frustration and uncertainty.
(Source: NSW Government)
When Will the Changes Take Effect?
While the Act has passed the NSW parliament, most of its provisions have not yet commenced.
The Act states that these changes will commence on a future date that will be appointed by proclamation, which will be a date that is at least one month after SafeWork NSW publishes relevant guidelines. (Source: NSW Government)
What Should Organisations Do Now?
Practical steps organisations that have digital work systems embedded in their operations could take include:
Reviewing how digital work systems operate
Identify any potential psychosocial impacts they can have on your workers
Discuss with your workers the impact they experience from them
Review your policies and procedures
Assess Compliance with iSafe
Our independent assessors can perform workplace safety assessments and help assess and identify gaps in your WHS systems, including how psychosocial risks are managed. Once risks have been identified, we can then provide you with the information you need to meet your legal obligations as well as take better care of your workers.