Psychosocial Hazards at Work: New Employer Obligations in Australia (2025-26)

Psychosocial hazards are aspects of work and work environments that can cause psychological harm — and in many cases, physical harm as well. They include excessive workload and work pressure, low job control, poor organisational change management, inadequate reward and recognition, bullying and harassment, violence or aggression, traumatic events, remote or isolated work, and poor workplace relationships. Psychosocial hazards are now the fastest-growing category of workplace injury claims in Australia.

Mental health-related workers' compensation claims cost Australian employers over $500 million per year, and the average claim duration is three times longer than physical injury claims. In response, Australian WHS regulators have introduced new, explicit obligations on employers to identify and manage psychosocial risks — treating them with the same seriousness as physical hazards like working at heights or operating machinery.

This is not about employers being "nice" — it's now a legal requirement with real penalties for non-compliance.

Several significant regulatory changes have taken effect. At the national level, Safe Work Australia published a revised Model Code of Practice for Managing Psychosocial Hazards at Work in 2022, which has now been adopted (with variations) across most jurisdictions. In Victoria, new psychosocial hazard regulations under the Occupational Health and Safety Act took effect on 1 December 2025, creating explicit duties for employers to identify, assess, and control psychosocial risks.

In New South Wales, the Work Health and Safety Amendment Regulation 2024 strengthened enforcement from mid-2025, with SafeWork NSW actively inspecting workplaces for psychosocial risk management. Queensland, South Australia, and Western Australia have all updated their WHS regulations to align with the model code.

At the Commonwealth level, Comcare has updated guidance for federal government employers. The practical effect is that every state and territory now has either explicit psychosocial hazard regulations or has adopted the model code, meaning employers across Australia have a clear legal obligation to manage these risks.

Under the new framework, your employer must take the same systematic approach to psychosocial hazards as they do to physical safety risks. This means: identifying psychosocial hazards in the workplace through surveys, consultation, incident data, and risk assessments; assessing the level of risk associated with each hazard; implementing control measures to eliminate or minimise the risk so far as is reasonably practicable; and reviewing and monitoring the effectiveness of those controls. Specific examples of what this looks like in practice include: conducting regular workload assessments and adjusting staffing levels where workload is unreasonable; establishing clear procedures for managing organisational change (restructures, redundancies, new systems); implementing effective anti-bullying and harassment policies with actual enforcement; providing training to managers on recognising and responding to psychosocial risks; ensuring workers have reasonable autonomy and control over their work; and consulting with workers about decisions that affect their mental health and wellbeing.

Importantly, the obligation is proactive — employers can't wait until someone has a breakdown to act.

As an employee, you have several rights related to psychosocial hazards. You've the right to a workplace that's safe for your psychological health — this is a fundamental WHS obligation. You've the right to be consulted about psychosocial risks and the measures being taken to address them.

You have the right to raise concerns about psychosocial hazards without fear of retaliation — adverse action against a worker who raises a WHS concern is unlawful under both WHS laws and the Fair Work Act. You've the right to refuse unsafe work if you have a reasonable concern that performing the work would expose you to a serious risk — this includes psychological risks, not just physical ones.

The short answer? You have the right to request a WorkCover or workers' compensation claim if you develop a psychological injury as a result of workplace psychosocial hazards. And you've the right to involve your health and safety representative (HSR) or union in any discussions about psychosocial risks in your workplace.

Recognising psychosocial hazards is the first step to addressing them. High job demands look like: consistently working through breaks, taking work home, feeling unable to keep up regardless of effort, or physical symptoms like headaches and insomnia from work pressure. Low job control looks like: no input into how you do your work, rigid micromanagement, no ability to take breaks when needed, or being excluded from decisions that directly affect your role.

Poor support looks like: no feedback from management, inadequate training, being left to figure things out alone, or no access to employee assistance programs. Workplace conflict looks like: ongoing interpersonal tension, cliques and exclusion, passive-aggressive communication, or unresolved grievances.

Bullying and harassment look like: repeated unreasonable behaviour directed at a worker or group — including verbal abuse, humiliation, setting impossible deadlines, or withholding information needed to do your job. If you recognise these patterns in your workplace, they are psychosocial hazards that your employer has a legal obligation to address.

If you believe your workplace has unmanaged psychosocial hazards, start by raising the issue with your manager or HR department in writing. Reference the specific hazard and the impact it's having. If your workplace has a health and safety representative (HSR) or committee, raise it with them — HSRs have legal powers to investigate and issue Provisional Improvement Notices.

If internal channels do not resolve the issue, you can contact your state or territory WHS regulator: WorkSafe Victoria, SafeWork NSW, Workplace Health and Safety Queensland, SafeWork SA, WorkSafe WA, WorkSafe Tasmania, NT WorkSafe, or WorkSafe ACT. Regulators can inspect workplaces, issue improvement notices, and prosecute employers who fail to manage psychosocial risks.

Penalties for WHS breaches can be significant — up to $1.5 million for a body corporate and $300,000 for an individual under category 2 offences in most jurisdictions, with higher penalties for reckless conduct. If you've already developed a psychological injury, speak to your doctor and lodge a workers' compensation claim through your employer's insurer.