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Imagine getting a performance warning not from your manager, but from an app. Or finding out your shifts have been cut because an algorithm decided your productivity score dipped. This is not a dystopian novel — it is happening right now in warehouses, delivery fleets, gig platforms, and increasingly, in office environments across Australia.

Algorithmic management refers to the use of software systems to monitor, evaluate, and make decisions about workers. Think scheduling tools that auto-roster based on sales data, platforms that flag “low performers” using keystroke analytics, or HR software that rates employee engagement from email sentiment. The technology is advancing faster than the legal and ethical frameworks around it.

 

What the data tells us

A 2024 report from the McKell Institute found that a significant proportion of Australian workers in sectors like retail, logistics, and customer service are already subject to some form of algorithmic oversight — often without knowing it.

The risks are real. Algorithmic systems can embed the same biases present in the data they were trained on. A woman returning from parental leave might score lower on “availability metrics.” An older worker might be flagged for “slower output” without context. These are not hypotheticals — they are documented outcomes in overseas jurisdictions, and Australian employment law is only beginning to grapple with them.

The Fair Work Act does not yet explicitly regulate algorithmic management, but adverse action, discrimination, and unfair dismissal provisions absolutely apply to decisions driven by software.

 

What you should do now 

If your business uses any form of automated people monitoring — even basic productivity software — here are three things to address immediately:

1. Audit what data is being collected and how it feeds into decisions.

Transparency is not just best practice; in some contexts, it is already a legal requirement.

2. Ensure a human remains in the loop for all significant employment decisions.

Software can inform; it should not be the final decision-maker on performance management, rostering changes, or termination.

3. Check your employment contracts and policies.

Do they reflect the monitoring tools you are using? Employees have a right to know how their work is being measured.

 

Algorithmic management is not inherently bad. Used well, it creates fairness and efficiency. Used poorly, it creates liability. The difference is whether a thoughtful human is steering it — and whether your people know how it works.

 

Ready to get ahead of this? Book a free 30-minute consulatation at  Blue Kite HR Consulting