The Legal Burning Platform: Why psychosocial safety is no longer optional

The landscape of workplace health and safety has fundamentally shifted. As of April 1st, 2023, a significant amendment to the Work Health and Safety Regulations placed a legal duty on employers to manage psychosocial hazards and risks. This was further reinforced by the updated Code of Practice released on October 27th, 2024.

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In simple terms, this means employers are now legally obligated to identify, assess, and control risks to workers' mental health, just as they do for physical safety hazards. This is no longer a best practice recommendation—it's a legal requirement.

What are Psychosocial Hazards?

Psychosocial hazards are anything in the work environment that can cause psychological harm to an employee.

 

This includes factors like:​

• Bullying

• Harassment (including sexual harassment)

• Excessive workload

• Poor change management

• Traumatic events

• Remote or isolated work

• The Risks of Non-Compliance

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Failure to comply with these new regulations can lead to:

• Legal penalties: Fines and other sanctions for breaches of WHS laws.

• Increased workers' compensation claims: Mental health-related claims are on the rise, and employers who fail to address psychosocial risks may face increased costs.

• Reputational damage: A poor record on mental health and safety can damage an organization's reputation and make it harder to attract and retain talent.

• Decreased productivity and engagement: A workplace with poor psychosocial safety can lead to lower morale, increased absenteeism, and reduced productivity.

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Moving Beyond Compliance

While compliance is essential, leading organizations are recognizing the benefits of going beyond the minimum legal requirements. Building a proactive and comprehensive approach to psychosocial safety can lead to:

• Improved employee well-being: A healthier and happier workforce.

• Increased productivity and engagement: Employees who feel safe and supported are more likely to be productive and engaged.

• Enhanced reputation: A strong commitment to mental health can enhance an organization's reputation and attract top talent.

• Stronger organizational culture: A culture of psychological safety fosters trust, collaboration, and innovation.

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Navigating these new regulations and building a robust psychosocial safety framework can be complex.

 

Our team of experts can help you:

1. Help your teams understand what psychosocial safety is and how to propagate it in the workplace.

2. Establish your compliance gaps and performance opportunities pertaining to psychosocial safety.

3. Identify and assess psychosocial hazards.

4. Develop and implement effective control measures.

5. Build a positive and supportive workplace culture.

6. Go beyond compliance and create a thriving workplace.

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Contact us today to learn more about how we can help your organisation priorities psychosocial safety and create a workplace where your employees can thrive.