A controversial bill allowing union representatives to investigate business digital platforms and AI tools is forcing a showdown in the Parliament of New South Wales. The proposal is pitting supporters who want workplace safety to keep pace with new technology against critics who label the proposal as an invasion of privacy and more red tape for employers. Related Article Block Placeholder Article ID: 328397 Labor’s National AI Plan has no standalone laws, asks businesses to police themselves Tegan Jones The Minns government’s Work Health and Safety Amendment (Digital Work Systems) Bill 2026 progressed to the Legislative Council on Thursday, inching closer to a vote on whether the landmark proposals should become law. Here’s what employers need to know about the bill, and what its passage could mean for businesses across the state. What is it? The bill, introduced by NSW Minister for Industrial Relations Sophie Cotsis in November, calls to amend the Work Health and Safety Act 2011 (WHS Act) to shield workers from harms caused by digital systems used in the workplace. It calls for employers to ensure workers are not harmed by ‘digital work systems’ like artificial intelligence tools, algorithms, workplace automations, and other online platforms. Smarter business news. Straight to your inbox. For startup founders, small businesses and leaders. Build sharper instincts and better strategy by learning from Australia’s smartest business minds. Sign up for free. * indicates required Email Address * By continuing, you agree to our Terms & Conditions and Privacy Policy. Those potential harms include excessive workloads, metrics, or performance assessments created by a digital work system, causing unacceptable risks to physical or mental health. Cotsis used warehousing and logistics as an example, “where that technology has been used to drive productivity to a point at which it creates risks and hazards to workers’ mental and physical health and safety”. NSW Treasurer Daniel Mookhey has also raised concerns about the gig economy, claiming digital platforms have instructed ride-share drivers and delivery riders to take illegal U-turns or park in no-stopping zones. Related Article Block Placeholder Article ID: 331137 OpenAI targets businesses with new Frontier AI agents platform Tegan Jones Crucially, the bill calls for entry permit holders — union officials or employees authorised to inquire about suspected breaches of the WHS Act — to access and inspect any digital work systems causing a workplace safety concern. If passed into law, this would create an Australian-first power for union representatives to assess the digital tools a business uses to operate. Employers who refuse to cooperate with those investigations could face court-ordered penalties. What do critics say? Industry groups are broadly opposed to the measure, fearing access to a business’ digital systems could enable union representatives to go on ‘fishing expeditions’ for sensitive information. The bill “creates sweeping new access rights with weak guardrails and serious unintended consequences,” said leading industry groups, including the Council of Small Business Organisations Australia, in a new joint statement. It would affect “housing construction, major infrastructure, energy and resources projects, where complex digital systems are central to operations”. Related Article Block Placeholder Article ID: 329072 Australia’s planned AI Advisory Body has been dumped Tegan Jones This “increased risk, uncertainty and delay would directly undermine housing supply and investment decisions”. Earlier this month, Business NSW CEO Daniel Hunter feared the regulations could slug employers with excess compliance checks. “Businesses need less red tape, not more; yet this bill is imposing significant new compliance burdens on businesses without any meaningful safety improvements for workers,” he said. What do supporters say? Speaking in the Upper House last night, NSW Treasurer Mookhey said the bill will ensure people “work for people, not computers”. He denied claims the bill would allow ‘fishing expeditions’, saying the exact kinds of information available to entry permit holders would be subject to regulatory approval. “Permit holders cannot go on a fishing expedition through a work system; it has to be relevant to the suspected contravention,” he said. “The regulator will publicly consult on what those guidelines will look like. “The fanciful suggestions of permit holders making changes to digital systems are just that: fanciful.” Unions NSW issued its own support for the bill on Thursday, with secretary Mark Morey claiming artificial intelligence is “dangerously intensifying work” and deserves further oversight. Speaking about digital platforms more broadly, Morey said, “When an algorithm decides your hours, your pay and your pace of work, workers deserve clear rules and real protections”. Where is the bill now? The bill passed in the lower house on Thursday and progressed to the upper house later that evening. It will remain there over the weekend, after debate ran into the 10pm deadline. Proceedings are expected to resume on Tuesday, when NSW Parliament resumes. Stay in the know Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.