This article was originally published on LinkedIn on 2 September 2025. It has been moved to the riskfacilitator Insights library so the website remains the permanent source.[1]
Primary sources used to verify and contextualise this archive: [2]
The Minns Government has delivered the most significant set of workplace reforms in over a decade. Passed in July 2025, the Industrial Relations and Other Legislation Amendment (Workplace Protections) Act 2025 (NSW) and associated Bills reshape obligations for employers, unions, and regulators. Alongside a $344 million mental health package, these reforms send a strong signal: compliance is no longer enough, businesses must demonstrate proactive, systemic risk management.
Work Health and Safety (WHS) Act Changes
AI and digital work systems For the first time, the law proposes to regulate the use of digital work systems such as algorithms, AI platforms and automated scheduling tools. PCBUs (persons conducting a business or undertaking) will be under a duty to ensure these systems do not create health and safety risks, for example, through excessive workloads, unreasonable metrics, invasive monitoring, or discriminatory practices. This obligation is not yet in force but will require careful system design once enacted.
Codes of Practice A new statutory duty has been introduced requiring PCBUs to either comply with an approved Code of Practice or manage risks to an equivalent or higher standard. This elevates Codes from guidance to compliance benchmarks, with SafeWork NSW having recently approved the Sexual and Gender-Based Harassment Code of Practice (June 2024).
Prime Marble & Granite case The silica exposure case, Prime Marble & Granite Pty Ltd v SafeWork NSW [2024], highlighted a critical gap in the law. SafeWork’s prosecution was dismissed as out of time under s232(1)(a), with the High Court refusing special leave to appeal. In response, Parliament amended the WHS Act to give courts discretion to extend limitation periods “in the interests of justice.” The message is clear: time-bar technicalities should no longer shield unsafe businesses from accountability.
Expanded union powers Unions now have broader rights to enter workplaces, collect evidence, and crucially, to commence WHS prosecutions after consulting with the regulator and where in the public interest. This reflects a shift towards shared enforcement, increasing scrutiny on PCBUs.
Dispute resolution WHS disputes will now be heard by the Industrial Relations Commission (IRC). The IRC can conciliate, mediate or arbitrate disputes and issue binding orders. Failure to comply may result in civil penalties of up to $25,000. This change reduces reliance on inspectors and strengthens the role of an independent tribunal in resolving workplace safety issues.
Industrial Relations Act Reforms
The IRC has also gained new jurisdictions:
- Bullying: The Commission can issue stop-bullying orders, with conciliation required before arbitration.
- Sexual harassment: Employers face vicarious liability for harassment by employees or agents, with civil penalties of up to $93,900 for organisations.
- Freedom of association: A reverse onus of proof has been reinstated, shifting the evidentiary burden back onto employers.
These provisions apply to NSW public sector agencies, local councils, and non-national system employers, but not corporations already covered by the federal Fair Work Act.
Workers Compensation Amendments (Proposed)
Psychological injury claims are under reform. The Workers Compensation Legislation Amendment Bill 2025 raises the permanent impairment threshold for psychiatric injury claims to 25%, with a later increase to 31%. It also clarifies that compensation will not extend to outcomes of “reasonable management action.” The aim is to contain escalating claim costs while still holding employers accountable for psychosocial risks.
What This Means for Employers
These reforms collectively mark a shift from reactive enforcement to systemic accountability. For employers, this means:
- Review Codes of Practice , treat them as compliance standards, not guidance.
- Audit digital systems , prepare for obligations around AI, algorithms, and scheduling platforms.
- Strengthen consultation and dispute resolution processes , the IRC will expect evidence of genuine engagement.
- Reassess policies on bullying, harassment and psychosocial hazards , liabilities are broader and penalties higher.
- Prepare for workers compensation changes , especially in relation to psychological injury claims.
These reforms reinforce a principle long championed in safety science, that the quality of systems and culture matters more than post-incident paperwork. Employers who embrace transparency, consultation, and systems of safety will not only stay compliant but build resilience in the face of emerging risks.
References
- Paul Chivers, Navigating the Latest WHS, IR and Workers Compensation Reforms in NSW, LinkedIn, originally published 2 September 2025.
- NSW Government, Industrial Relations and Other Legislation Amendment (Workplace Protections) Act 2025, accessed 10 August 2026.