Victorian Government foreshadows tougher workplace surveillance laws

On 20 July 2026, the Victorian Labor Government announced plans to introduce what it describes as "the toughest workplace surveillance laws in the country", if re-elected in November this year.

The proposal will introduce greater protections for employees against supposed inappropriate workplace monitoring, and increase human oversight of artificial intelligence (AI) driven employment decisions.

The announcement comes amid the acceleration of workplace surveillance due to technological advancements and the growing adoption of remote and hybrid work arrangements. It forms part of a broader set of workplace reforms by the Victorian Government, following its announcement last year to legislate a right for all employees to work from home at least two days per week, as explored in our previous insight. Since that insight was published, new Premier Ben Carroll has announced that Victoria's proposed work from home laws will be delayed until at least 1 July 2027 and that he remains in consultation with industry and business groups on potential amendments to the legislation.

What changes are proposed under the new workplace surveillance laws?

The proposed framework that has been announced will introduce new obligations for employers and place greater restrictions on the use of workplace surveillance, AI and biometric technologies, including to:

• require employers to notify employees of workplace monitoring and consult with employees before introducing or changing workplace surveillance systems;
• require workplace surveillance to have a legitimate purpose;
• limit covert surveillance to circumstances where unlawful activity is suspected and subject it to strict controls;
• prevent the collection of biometric data where a less intrusive option is available;
• prevent the use of biometric data to infer or monitor employees' emotions without a legitimate reason;
• prevent AI from monitoring matters such as bathroom breaks, a limp or pregnancy without a specific and legitimate purpose;
• increase protections against the discriminatory use of workplace surveillance and AI;
• require employers to ensure AI used in recruitment, promotion and pay decisions is not biased or discriminatory;
• require human review of significant automated decisions made using surveillance data that affect a worker’s rights; and
• give employees the right to access surveillance data that is used to affect their employment.

Background to the proposed changes

The proposal follows findings from the Parliamentary Inquiry into Workplace Surveillance conducted by the Legislative Assembly Economy and Infrastructure Committee (Committee) throughout 2024 and 2025.

The Committee reviewed existing surveillance and privacy laws, took submissions from 44 parties, and heard from 38 stakeholders across four public hearings.

The Committee's Final Report was tabled on 13 May 2025 and made 18 recommendations. While it recognised that workplace surveillance can serve legitimate purposes such as promoting health and safety, the Committee identified significant regulatory gaps in Victoria compared to other jurisdictions.

The Final Report found that Victorian employers are generally not required to notify employees that workplace surveillance is occurring, which contributes to a lack of transparency regarding the collection, use and storage of workers' personal information.

The Committee expressed concern that the increasing use of technologies such as keystroke tracking, biometric monitoring, wearable devices and AI may create significant privacy risks and undermine trust between employers and employees.

To address these concerns, the Final Report recommended the introduction of new technology-neutral workplace surveillance laws requiring surveillance to be reasonable, necessary and proportionate to achieving a legitimate objective. It recommended introducing requirements for employers to notify and consult with employees about surveillance practices and disclose how employee data is collected, used and stored.

The Committee further recommended that employers using surveillance technologies be required to maintain a written workplace surveillance policy, setting out how surveillance is conducted and managed.

The Government's response was released in November 2025 and supported 15 of the 18 recommendations in principle. This indicates general support from the current Government for the merit of the findings and recommendations of the Committee but leaves open the question of how the recommendations will ultimately be implemented.

Key takeaways for employers

With the resignation of Jacinta Allan and the ascension of Ben Carroll to the role of Premier of Victoria, it is currently unclear how much the Labor Party's policy platform may change in the lead-up to the November 2026 state election.

If introduced, the proposed reforms will significantly change the regulation of workplace surveillance in Victoria and impose new obligations on employers.

Although legislation has not yet been introduced, employers should monitor developments and begin reviewing their workplace surveillance practices, AI systems and data governance arrangements in preparation for potential reform.

For more information on how the proposed reforms may impact your organisation, please contact our Workplace Relations & Safety team.