NSW Government passes bill to amend workplace laws

The Industrial Relations and Other Legislation Amendment (Workplace Protections) Bill 2025 (the Bill) proposes significant changes to the industrial relations and workplace health and safety laws in New South Wales. The Bill was introduced on 27 May 2025 and passed both houses on 25 June 2025.

The Bill has an industrial relations component and a work health and safety component and builds on the reforms that were commenced in 2023. These reforms saw, amongst other things, the re-establishment of the Industrial Court of NSW and establishing SafeWork NSW as a standalone agency operating independently from the Department of Customer Service and led by a Commissioner. These amendments continue the State Government’s commitment to introduce a raft of changes to workplace laws in NSW.

Key amendments to the WHS Act

The amendments include important changes to the Work Health and Safety Act (NSW) (WHS Act) such as:

• Powers of Unions to investigate and prosecute: Union officials will have the power to collect evidence related to suspected contraventions of the WHS Act.  At this stage the power extends only to conducting tests and taking measurements, photos, and videos related to a suspected contravention of the WHS Act. It does not extend to the taking of statements. However, the Bill provides that SafeWork may enter into an arrangement with Unions to share or exchange information held by them and that confidential information and documentation obtained by SafeWork during an investigation can be disclosed to a Union. What this means is that information obtained by SafeWork pursuant to their coercive powers could be obtained by a Union. This amendment could prove very useful to Unions given that pursuant to another amendment in the Bill, Unions will also have the power to commence prosecutions under the WHS Act if the Union has consulted with SafeWork NSW (SafeWork) and SafeWork has declined to bring proceedings. The Bill also allows for a prosecuting Union to receive part of the fine imposed by the court if the prosecution is successful.
• Easing of the two-year limitation period: The courts will be empowered to allow prosecutions after the two-year limitation period has expired if it is in the ‘interests of justice’ to do so. The Bill does not define or give examples of what this entails, leaving it to the courts to determine on a case by case basis. This amendment was in response to the difficulties faced by the regulator in prosecuting occupational exposure incidents, but the ‘interest of justice’ appears to be broader than that.
• Codes of Practice becoming legally binding: The amendments will see Codes of Practice become legally binding when approved by the Minister. Persons Conducting a Business or Undertaking (PCBUs) will be required to comply with the approved Codes unless they can demonstrate that they have managed hazards and risks in a manner that, although differing from the requirements of the approved Code, provides a standard of health and safety that is equivalent or higher than the standard required by the approved Code.
• Establishment of direct line to Industrial Relations Commission: This amendment allows PCBUs, workers, health and safety representatives and Unions to bypass the involvement of a SafeWork inspector and take a dispute about a “WHS matter” directly to the Industrial Relations Commission (the Commission). “WHS matter” is defined in the Bill to include matters such disputes regarding work group determinations and variations, access to information by a health and safety representative (HSR), and requests by HSRs for a person to assisting the HSR to have access to a workplace, for example. The Commission can address the dispute as they see fit (such as by mediation, conciliation, or arbitration).

Psychosocial risks

In line with its commitment to improve psychosocial health in the workplace, the Bill also requires SafeWork to provide six monthly reports to the Minister covering:

• the number and types of complaints received by SafeWork about psychosocial matters
• the number and types of notices issued by SafeWork relating to psychosocial risks
• insights gained, and
• recommendations for improving psychosocial health and safety and reducing psychological injuries.

Changes to the IR Act

The changes to the Industrial Relations Act 1996 (NSW) (IR Act) introduce anti-bullying and sexual harassment jurisdictions to the Commission. These reforms fill gaps for workers in the state public sector and local government who are unable to access similar regimes in the federal jurisdiction.

Under the anti-bullying jurisdiction:

• An employee who ‘reasonably believes’ they have been bullied at work can apply to the Commission for a stop bullying order. Being ‘bullied at work’ is defined as when an individual or group of individuals repeatedly behaves unreasonably towards and employee, creating a risk to their health and safety. Reasonable management actions are excluded from this definition.
• The Commission must endeavour, by all means the Commission considers proper and necessary, to settle the application by conciliation. If the matter cannot be settled by conciliation the Commission will hear the application and can either make a stop bullying order or dismiss the application.
• The Commission can make any order to prevent the employee from being bullied at work if it is satisfied that the employee has been bullied at work and there is a risk of the bullying continuing.
• Of particular importance is the power to award compensation of up to $100,000 for loss or damage suffered from the bullying along with other remedies such as: a prohibition on continuing or repeating the bullying; the performance of reasonable actions or a course of conduct to redress the employee’s loss or damage; the publication of an apology or retraction, and the development and implementation of a program or policy aimed at eliminating bullying.
• Civil penalties apply for the contravention of a stop bullying order, of up to $18,870 for an individual or otherwise up to $93,900.

For the sexual harassment jurisdiction:

• ‘Sexual harassment’ has the same definition as in s 22A of the Anti-Discrimination Act 1977 (NSW).  A person must not sexually harass another person in connection with that person being an employee, a prospective employee, or a person conducting a business or undertaking.
• Vicarious liability applies to employers, unless they can prove that all reasonable steps were taken to prevent the harassment.
• A person who alleges they have been sexual harassed may apply for a sexual harassment order. An application must be made within 24 months of the alleged sexual harassment.
• Like the bullying jurisdiction, the Commission must endeavour, by all means the Commission considers proper and necessary, to settle the application by conciliation. If the matter cannot be resolved by conciliation the Commission can hear the application and make either a sexual harassment order or dismiss the application.
• The remedies which can be ordered by the Commission are broad and can include orders to prevent or remedy the sexual harassment, including for example: compensation of up to $100,000 for loss or damage suffered from the sexual harassment; a prohibition on continuing or repeating the sexual harassment; the performance of reasonable actions or a course of conduct to redress the person’s loss or damage; the publication of an apology or retraction, and the development and implementation of a program or policy aimed at eliminating sexual harassment.
• Civil penalties apply for the contravention of a sexual harassment order, of up to $18,870 for an individual or otherwise up to $93,900.

Additional key changes to the IR Act include:

• Expanding the victimisation jurisdiction including additional grounds under which a victimisation application can be brought under s 210 of the IR Act.
• An increase to the monetary cap for small claims in the Commission from $20,000 to $100,000 (through amendment to the Industrial Relations (General) Regulation NSW  2020).
• An expansion of the Commission’s powers during disputes, including the power to issue recommendations or directions during conciliation without a party’s consent, and to require written reasons for any non-compliance.
• Reforms to the process for civil penalty proceedings.

You can view the Bill here: Industrial Relations and Other Legislation Amendment (Workplace Protections) Bill 2025