Another possible concern is that the employee sues for wrongful termination, alleging they were "just following the law" (which they would have been). The employee shouldn't lose his job for following the law, the company shouldn't have such problems for trying to protect its users, and this whole mess was caused by government intervention.

But yes, it will be interesting to see how the courts rule. Not familiar with Australian law, so if anybody has thoughts about this, please feel free to enlighten me.