Ross Heron | CEO, Australian Payroll Association
NSW has made a significant shift.
In February 2026, the Work Health and Safety Amendment (Digital Work Systems) Act 2026 (NSW) clarified that work health and safety duties expressly apply to digital work system including: AI, algorithms, automated rostering, workforce management platforms, and integrated payroll solutions.
As the NSW Government stated:
“The bill will ensure that all work demands must be safe, whether they come from a human or come through artificial intelligence (AI) or algorithms.”
For payroll leaders, this is not simply legal commentary. It is operational reality.
How systems allocate shifts, track hours, set parameters, and influence workload now clearly sits within a WHS framework. These tools are no longer just back-office systems, they are safety relevant.
What Has Changed
The amended Act defines:
“Digital work system means an algorithm, artificial intelligence, automation or online platform.”
That definition is deliberately broad. If technology is used to allocate, monitor, or structure work, it is now clearly within scope.
Two key obligations are particularly relevant for payroll professionals.
First, the primary duty of care now expressly covers risks arising from digital work systems. If a system contributes to fatigue, psychological strain, excessive monitoring, or unsafe workloads, it is a WHS issue.
Second, a new section (21A) creates a specific duty where work is allocated digitally. Organisations must ensure that digital allocation does not put health and safety at risk and must consider whether systems create:
- Excessive or unreasonable workloads
- Excessive performance metrics
- Excessive monitoring or surveillance
- Discriminatory practices or decision-making
Automated rostering and scheduling are no longer simply efficiency tools. They now carry governance obligations.
Regulatory Access and Penalties
The amendments also extend WHS entry powers to digital systems. Once SafeWork NSW publishes guidelines, inspectors and permit holders will be able to require reasonable assistance to access and review relevant systems where a breach is suspected.
The existing WHS penalty framework applies. For serious Category 1 offences, penalties include substantial fines and, for individuals, up to 10 years’ imprisonment. Industrial manslaughter provisions carry even higher penalties in extreme cases.
Importantly, a breach does not require a physical injury. Failing to assess and manage risk may itself constitute non-compliance.
Practical Steps for Payroll Leaders
This is where leadership matters.
Map your systems. Identify every tool influencing rostering, allocation, overtime, time capture, and performance monitoring.
Review real outputs. Examine the shifts, notifications, and workload allocations employees receive, not just system settings.
Identify risk indicators. Watch for compressed shifts, insufficient rest periods, uneven workload distribution, or automated prompts that increase psychological pressure.
Strengthen governance. Clarify ownership of digital risk reviews and ensure oversight does not sit solely with vendors or IT.
Document actions. Maintain clear records of risk assessments, reviews, and corrective measures.
Why This Elevates Payroll Leadership
Payroll and workforce systems shape how work is experienced. They influence fatigue, fairness, and wellbeing. The law now reflects that reality.
Reviewing systems through a WHS lens protects employees, reduces organisational exposure, and positions payroll leaders as governance contributors, not administrators.
Payroll leaders who proactively review and strengthen governance around digital systems will not only ensure compliance they will help shape safer, fairer workplaces.
References
- Work Health and Safety Amendment (Digital Work Systems) Act 2026 (NSW). Source: NSW Parliament — Passed Bill.
- NSW Government. (2026). Putting Safety First in the Digital Age — Ministerial Release.
