"The Privacy Act changes, as currently drafted, have thrown up an element that has not been properly thought through and could in fact endanger workers rather than protect them," said Innes Willox, Chief Executive of the national employer association, the Australian Industry Group.
"There needs to be more consultation on this Bill to avoid the problematic and unintended consequences of the Statutory Tort in Schedule 2.
"The Statutory Tort will impose complicated and unclear risks on employers that will be another regulatory nightmare for business to navigate.
"This is unjustified. It duplicates the Office of the Australian Information Commissioner's functions and potentially opens the floodgates to litigation. This needs to be urgently rethought.
"There are major questions relating to the extent to which the changes will interfere with the capacity of employers to manage fundamental elements of their operations, such as workplace health and safety, including fatigue, psychosocial risks and employee conduct and performance.
"Today's changes haven't been properly thought through. The Bill as it currently stands needs to be urgently reworked soon in the interests of both employers and their employees," Mr Willox said.