AI Regulation ReferenceWork Health and Safety Amendment (Digital Work Systems) Act 2026
Obligations Covered
Provisions (2)
Digital Work System Risk Assessment #
NSW's Digital Work Systems Act catches every employer using algorithmic scheduling, AI-driven monitoring, automated performance management, or platform-based work allocation. The definition of "digital work system" explicitly includes algorithms, AI, automation, and online platforms — making this one of the broadest workplace AI laws globally. Any company operating in NSW with AI-assisted HR, logistics, or workforce management tools must assess and manage WHS risks from those systems.
Requirements
| Requirement | Details |
|---|---|
| Risk identification | PCBUs must identify WHS risks arising from digital work systems (algorithms, AI, automation, online platforms) |
| Risk assessment | Assess specific risks including excessive/unreasonable workloads, performance metrics, monitoring/surveillance, and discriminatory practices |
| Risk management | Ensure, so far as reasonably practicable, that workers' health and safety is not put at risk by digital work systems |
| Scope of digital work systems | Defined as any algorithm, AI, automation, or online platform used for work allocation, monitoring, performance management, or similar workplace functions |
Penalties
| Violation | Fine |
|---|---|
| Individual (failure to manage digital work system risks) | Existing WHS Act penalty tiers apply |
| Corporation (failure to manage digital work system risks) | Existing WHS Act penalty tiers apply |
| Failure to assist WHS entry permit holder (individual) | 121 penalty units (~AUD 13,310) |
| Failure to assist WHS entry permit holder (corporation) | 607 penalty units (~AUD 69,980) |
Digital Work System Transparency and Inspection Access #
WHS entry permit holders (typically union officials) gain rights to access and inspect digital work systems — including AI algorithms and monitoring tools. Employers must provide "reasonable assistance" on 48 hours' notice. This creates a transparency obligation where the AI/algorithmic logic behind workplace decisions becomes inspectable by worker representatives, not just regulators.
Requirements
| Requirement | Details |
|---|---|
| Inspection access | WHS entry permit holders may access and inspect digital work systems relevant to workplace health and safety |
| Reasonable assistance | PCBUs must provide reasonable assistance to entry permit holders for accessing/inspecting digital systems |
| Notice requirement | 48 hours' notice required before entry permit holder inspection |
| SafeWork guidelines | Access powers subject to SafeWork NSW guidelines (to be issued after public consultation) |
Penalties
| Violation | Fine |
|---|---|
| Failure to provide reasonable assistance (individual) | 121 penalty units (~AUD 13,310) |
| Failure to provide reasonable assistance (corporation) | 607 penalty units (~AUD 69,980) |