26/05/2026
Unions are continuing to sound the alarm on the impact widespread adoption of AI could have on workers’ rights, warning the lack of legal guardrails risks the erosion of job security and further entrenchment of socioeconomic inequality. A union backed report released by the John Curtin Research Centre (JCRC) has highlighted the importance of ensuring that the gains of AI adoption are shared between businesses and workers, cities and regional areas. The report argues that a worker-centred approach to AI is not anti-innovation but pro-productivity and pro-growth. It calls for Australia to learn from the rise of social media and implement legislative guardrails, early instead of trying to retrofit regulation after the damage has become apparent.
Stakeholders have long been raising awareness of the repercussions AI will have on workers’ rights, with the final report from the Select Committee on Adopting Artificial Intelligence released back in 2024 recommending the strengthening of the Fair Work Act 2009 (Cth) and mandatory AI impact assessments before implementation. A number of reports across the public and private sector have since been released further exploring the risks and emphasising the lack of protection for workers. This includes a review into the federal Workers Compensation legislation which identified AI and related technologies as a major risk for psychosocial injuries.
As the adoption of AI systems in workplaces continues to increase, many are concerned about increased surveillance, lack of privacy and data security, job losses, and a lack of transparency in decision-making. Although the Australian Government has released the National AI Plan, the approach so far has been to provide negotiated guidance rather than enforceable regulation.
Unions, workers, and employment law experts have specifically called for greater consultation before AI systems are implemented and for existing consultation obligations in Modern Awards and Enterprise Agreements to explicitly include how AI systems will be used. Automated systems are increasingly being used in rostering and labour allocation, surveillance, performance management, training, and recruitment. However, workers have reported that any training is focused on how to use AI systems, rather than how data is collected and what it might be used for. The JCRC report argues that the lack regulatory oversight leaves workers vulnerable to exploitation by decision-making mechanisms that lack transparency and are difficult to challenge.
With the protections of workers still in flux, the JCRC makes a number of policy recommendations, including the establishment of an Expert Panel on AI within the Fair Work Commission (FWC) to be tasked with setting standards, overseeing the use of AI in workplace relations, and supporting in the resolution of disputes involving AI-enabled decision-making.
It is widely agreed that AI presents opportunities for productivity and improved service delivery, however the implementation of AI in workplaces without an impact assessment informed by consultation with affected workers can create distrust and conflict in the workplace.
This is a rapidly developing area and given the increasing pressure from the sector and the absence of a strong regulatory response from the government it is likely that we will see more workplace level agreements similar to the one reached by Microsoft and the Australian Council of Trade Unions announced early this year.
If you would like advice about your obligations when implementing AI systems in the workplace, our team of experts are well versed in all aspects of employment and privacy law.