Businesses sound alarm over NSW's digital guardrails proposal

Industry leaders express various concerns about the bill's contents

Businesses sound alarm over NSW's digital guardrails proposal

Industry leaders are pushing back against New South Wales' proposed reforms that aim to introduce guardrails around digital safety in workplaces.  

The reforms seek to amend the state's Work Health and Safety (WHS) laws to clarify the responsibility of employers amid the growing use of digital work systems, such as artificial intelligence, automation, or online platforms.  

The New South Wales government said the guardrails will ensure that the use of these systems will not lead to unsafe workloads, unreasonable performance tracking, excessive surveillance, or discriminatory work allocation.  

Businesses push back  

But business groups across Australia are pushing back against the proposal, citing misalignment between the model WHS laws and individual State and Territory legislation.  

"It is the role of Safe Work Australia and its associated tripartite process to monitor emerging hazards, and those matters that the Bill seeks to address are already accommodated within the existing model framework. On this basis, the Bill should not be progressed," the business groups said in a joint statement.  

The groups also warned that the reforms will have unintended consequences and practical challenges for employers.  

"We are not aware of any evidence before the Parliament that would warrant such a significant departure from the model WHS laws," the groups added.  

Among the signatories to the statement are the leaders of the Australian Chamber of Commerce and Industry, Australian Industry Group, Australian Retailers Association, Business NSW, and the Business Council of Australia, among others.

The business groups' leaders further called out the government's lack of appropriate and thorough consultation with business in introducing the reforms. They also expressed concerns that the bill:  

  • Creates significant new access rights for WHS entry permit holders and unfair compliance obligations for PCBUs
  • Raises substantial concerns about privacy, cybersecurity, and the protection of worker and customer data, intellectual property and commercially sensitive information
  • References "guidelines" that are yet to be made, and the scope and content of which are unknown  

"In the event your Government resolves to pursue the Bill, robust consultation on its impacts is crucial," the business groups said.  

"Only if progressed, the Bill should be referred to a Parliamentary inquiry, alternatively, we would welcome the opportunity to meet with you in person to discuss our concerns."  

NSW's new digital guardrails  

The New South Wales government previously said its reforms clarify and add to the existing workplace safety duties of employers under the Work Health and Safety Act (2011).  

It is the state's response to a report in 2022 that outlined various recommendations on the rise of digital systems and their impact on workers' psychosocial health.  

"As digital systems become more common in workplaces, the Minns Labor Government is making sure that these systems help businesses without undermining the health and safety of workers," said Industrial Relations Minister Sophie Cotsis in a previous statement.  

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

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