Workplace surveillance: A thing of the past? Not so fast

With WorkSafe Victoria recognising workplace surveillance as both a psychosocial hazard and risk control measure under workplace health and safety law, and NSW recently introducing laws around digital work systems, the legal landscape for Australian organisations is shifting. Employers across the country should take note: workplace surveillance isn’t dead, but it must evolve now.

AI has made workplace surveillance tools more powerful than ever, offering employers benefits such as monitoring for productivity, performance and conduct, ensuring compliance with workplace policies, protecting intellectual property, and enhancing security. It can also serve as a risk control measure, helping organisations monitor and mitigate risks such as workplace violence, theft, or breaches of safety protocols. But with all its benefits, surveillance tools also carry significant risks for the organisations implementing them, particularly when overused or misused. Excessive or poorly implemented surveillance can lead to stress, anxiety, and a breakdown of trust among employees. This requires employers to carefully balance the benefits of surveillance with its potential to cause harm and take a nuanced approach to dealing with these issues.

The legal framework governing workplace surveillance in Australia is found in a complex web of obligations under industrial relations, workplace health and safety, workplace surveillance, and privacy laws. Privacy laws impose obligations on employers to handle personal information responsibly, including data collected through monitoring tools. Industrial relations laws require employers to act fairly and reasonably in their treatment of employees. Most relevantly, workplace health and safety laws require employers to provide a safe working environment, with an increased focus on the prevention of psychosocial hazards, including stress, anxiety, and loss of trust. Surveillance that goes beyond what is “reasonable” can increase these risks, creating new legal and reputational challenges for employers.

WorkSafe Victoria’s Compliance Code for managing psychosocial hazards recognises workplace surveillance as both a potential hazard and a control measure. The Victorian government has also communicated an intention to enact new, explicit workplace surveillance laws. NSW recently introduced reforms around the allocation of work using digital work systems (including AI), which require employers to consider whether this results in excessive or unreasonable monitoring or surveillance of workers, while other states are yet to introduce specific legislative changes addressing the psychosocial impacts of surveillance. In these jurisdictions, the general workplace health and safety laws still apply, requiring employers to manage risks to both physical and mental health, including psychosocial hazards.

As AI-enabled technology continues to grow, further reforms are expected across Australia to address the evolving challenges of workplace surveillance. A recent decision by the Fair Work Commission, Australia’s national workplace relations tribunal, recognised that recording an employee at all times, including when they are working from home, creates risks to mental health and privacy. This decision highlights the shifting federal landscape on workplace surveillance and could influence future legal developments and workplace practices across the country.

The days of “set-and-forget” surveillance are over. Although most states have not yet introduced specific legal reforms addressing workplace surveillance, changes are expected in the near future. Employers should not wait for these changes to be legislated; instead, they should proactively rethink how they use surveillance now, regardless of the state or territory they operate in.

To do this, organisations should adopt a balanced approach to surveillance that prioritises both organisational needs and employee wellbeing. This means implementing measures that are risk-based, proportionate to the organisation’s specific needs, while fostering transparency and trust. Clear communication with employees about how and why surveillance is being used is essential to building a positive workplace culture and avoiding the risks of crossing the line.

Conducting regular risk assessments to identify potential psychosocial hazards, engaging employees in open conversations about surveillance, and ensuring that monitoring tools and policies are reasonable and compliant with evolving laws are key.

When implementing new surveillance measures, organisations should be prepared to justify their use as reasonable and necessary. This means considering whether the tools are proportionate to the risks they aim to address and whether they strike the right balance between the benefits of surveillance for business needs and employee wellbeing. Seeking legal advice to ensure compliance with current laws and expected reforms is also critical.

This article was first published in Lawyers Weekly, March 23 2026.