States move to rein in workplace surveillance as AI use accelerates

Moves by New South Wales and Victoria to tighten controls on workplace surveillance mark a turning point in how Australian governments are responding to the spread of AI and digital monitoring at work. Both states are signalling that existing employment frameworks are no longer sufficient to manage technologies that can track, evaluate and even automate decisions about workers in real time. Victoria has supported in principle most recommendations from a recent inquiry into workplace surveillance. The proposed reforms would introduce clear legal obligations around transparency and consultation, while placing strict limits on covert monitoring and biometric data use. Employers would be required to justify why surveillance tools are necessary and proportionate, with protections extending to remote and hybrid workers as well.

In NSW, the Digital Work Systems Bill goes further by targeting how software shapes workloads and performance management. The bill would require businesses to ensure digital systems do not encourage unsafe work intensity, excessive tracking or discriminatory task allocation. A provision allowing unions to inspect digital systems has drawn strong opposition from business groups, which argue it risks exposing proprietary processes and slowing innovation. Stronger rules could improve job quality by limiting intrusive monitoring and opaque algorithmic management, particularly in remote roles. At the same time, uncertainty around compliance may delay adoption or raise costs for firms. With Safe Work Australia exploring similar principles nationally, these state moves may be a testing ground. The challenge will be balancing worker protections with productivity gains as AI becomes embedded across Australian workplaces.

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