The Australian Retailers Association (ARA) and National Retail Association (NRA) have raised alarm over proposed NSW legislation that would give Health and Safety Representatives and union officials unprecedented access to employers' digital systems - raising serious concerns about privacy, confidentiality and the protection of sensitive business information.
The Work Health and Safety Amendment (Digital Work Systems) Bill 2025, introduced without business consultation, risks adding substantial red tape, undermining national WHS harmonisation, and increasing business compliance burdens.
ARA CEO Chris Rodwell said union officials could gain wide access to employers' digital systems on the basis of a suspected WHS contravention - raising concerns about confidentiality, privacy and the protection of sensitive business and employee information.
"The bill proposes unprecedented access to commercially sensitive digital systems, from AI and automation tools to routine scheduling and payroll platforms," said Mr Rodwell. "This is a backward step on privacy and security that would not be allowed to occur in any other setting. It is also a significant departure from existing WHS laws and from the nationally harmonised framework which NSW has long supported."
The Bill introduces new duties around 'digital work systems' - including everyday workplace tools such as email, rostering software, payroll platforms, AI systems and basic scheduling applications - that were not subject to proper consultation and extend well beyond established WHS obligations.
Mr Rodwell said the proposed laws would impose significant uncertainty and compliance burdens on thousands of NSW businesses, including small and family-run retailers already under pressure.
"Retailers are committed to safe and healthy workplaces, but these changes go far beyond the established WHS framework. They were introduced without consultation, they are poorly defined, and they risk creating confusion, duplication and unintended obligations for businesses across the state," he said.
Mr Rodwell also warned that the changes effectively create a complex overlay to existing state and federal legislation - including anti-discrimination, workplace-surveillance and privacy laws - while contradicting the nationally agreed WHS approach overseen through Safe Work Australia.
"We are at peak regulation and governments have committed to helping harmonise and reduce duplicate legislative requirements. If the NSW Government wishes to explore reform in this area, it must occur through national consultation. Introducing state-based laws of this kind risks fragmenting the WHS system and increasing costs for businesses that operate across multiple jurisdictions," he said.
The ARA and NRA urge the NSW Government to use the appropriate national pathways for considering emerging risks, such as a structured Safe Work Australia consultation with employers, unions and government. Until this occurs, the Bill should not proceed.
"Retailers support modern, safe workplaces, but reforms must be balanced, evidence-based and workable. These provisions do not meet that test. We urge the Government to reconsider this Bill and return to a nationally consistent, consultative reform process," Mr Rodwell said.
