Many business owners may already be aware (either through anecdote or experience) of the rise of SafeWork claims regarding psychosocial hazards/injuries in the workplace.
Whilst this may simply seem to some like the latest iteration of mental health related claims, in truth psychosocial hazards/injuries are a significant change to the overall operational requirements of a business when meeting their Health and Safety obligations.
More importantly, since 1 July 2026 legislative changes made to sections 19, 26A and 27of the Work Health and Safety Act 2011 (NSW), which make the Safework NSW Code of Practice for Managing Psychosocial hazards at work a legally enforceable standard on businesses, and in turn make it vital that businesses take appropriate steps to manage psychosocial risks.
What are Psychosocial Hazards?
Put simply, psychosocial hazards refer to a situation or aspect of work that may trigger a stress response in an individual, which in turn may lead to psychological or physical harm of that individual.
Psychosocial hazards cover a wide scope of areas, but tend to focus on the following:
Design or Management of Work: essentially everyday working processes which, by virtue of flaws in their operation, demand, volume, control, repetition/lack of variety, lack of role clarity or level of regulation create significant risks of higher stress, upset, frustration, or other similar reaction.
Example: Overly complex paperwork/record requirements, excessive/high volumes of work undertaken in limited timeframes, limited variety or variance to work
The Work Environment: This can include both the regular day-to-day interactions of staff, but also the general working environment. Whilst taking into account usual WHS concerns (Bullying, Harassment, Traumatic Events) it also extends to the general regular environment individuals may be exposed to on the job/site
Example: Ongoing fear of job loss (job insecurity), interpersonal conflicts (management or other staff) repetitive/monotonous tasks, isolation, ongoing exposure to hazardous physical working environments to the extent they evoke a stress response.
Workplace Interactions or Behaviours: Probably the most significant change, this can include where reasonable management processes (i.e. Disciplinary/performance management) are done in such a manner as to create excessive stress on the recipient.
Example: Limited timeframes for response, limited information being supplied to the recipient, performance goals that are not reasonably achievable in a limited period due to existing limitations
Compliance/Managing the Risks
Much like other areas of health and safety, management of psychosocial risks is undertaken by:
- A robust and regularly updated policy
- Appropriate Risk Assessments and a running Risk Register
- Regular consultation with staff
- Applying appropriate Psychological Risk Review process
Policy
Every business should have a psychosocial policy as a minimum within their business. Whilst not the sole means of assessing compliance, SafeWork are requiring businesses to implement policies for the management of psychosocial hazards, and the consequences for non-compliance can be significant (including fines, rectification orders and other measures).
MTANSW has devised a policy for its members, available via the ERIS Website:
ERIS
Risk Assessments/Risk Register
A standard tool that SafeWork will typically require businesses to apply in risk management. This document will usually involve:
- Identifying a risk
- Identifying the likely impact
- Applying the ‘Hierarchy of Control’ to manage the risk (Eliminate, Substitute/Redesign, Isolate, Change, Training)
These assessments should then be put into a running register, where a business reviews and/or updates these as needed on a regular basis.
Psychological Risk Review Process
Applied in a Risk Assessment, it usually involves flagging the duration, frequency of exposure to hazard, the severity of the hazard (psychologically) and any combined risks (i.e. increasing risk of physical harm due to distraction).
Consultation
Apart from being a usual part of any risk assessment, consultation with staff/stakeholders is your best resource for managing any risk, psychosocial, physical or psychological. Input by these parties can help a business keep ahead of any emerging risks, as well as limit likelihood of being caught out by an unexpected claim. Members should be alert to consultation when implementing new policies, procedures, systems of work as well as technology, plant and equipment. Routine Feedback surveys, regular site interaction and/or encouraging open communication are proven methods that generally benefit business operations.
Knowing the Signs
As part of compliance, Businesses should also be keeping an eye on information sources that may flag psychosocial risk in personnel. This includes:
- Absence records of staff, including sick leave
- Anonymous survey comments
- Increase in grievances, incident reports, and other HR/WHS related areas
- Parties undertaking regular/excessive overtime
- General workplace behaviour and attitude (low motivation, desultory attitude, annoyance, excessive emotional response to regular tasks)
How MTA NSW Can Help
MTA NSW has prepared several template documents to assist members in managing Psychosocial hazards.
For more information on these policies/procedures, please contact our ER Team on
[email protected]
or
(02) 9016 9000
or log in to your
ERIS account.