New regulation — most businesses non-compliant

Psychosocial Hazards:
Employer Obligations

Australian employers are now legally required to identify and manage psychosocial hazards in the workplace. Most don't know these obligations exist — and the penalties are severe.

On this page

What are psychosocial hazards?

Psychosocial hazards are aspects of work design, organisation, and management — plus their social and environmental context — that have the potential to cause psychological or physical harm. Unlike a wet floor or a faulty ladder, psychosocial hazards are often invisible. They live in workloads, team dynamics, management practices, and organisational culture.

The key shift for Australian employers: these hazards now receive the same legal treatment as physical hazards. You must identify them, assess the risk, and implement controls — the same way you would for working at heights or handling chemicals.

Psychosocial hazard obligations come from multiple overlapping sources:

Important: Victoria operates under its own OHS framework but has equivalent psychosocial hazard obligations through the Occupational Health and Safety Regulations 2017 (Part 3.1). The substance is the same.

The 14 recognised psychosocial hazards

Safe Work Australia identifies the following hazards that employers must systematically assess:

HazardExample
High job demandsUnrealistic deadlines, excessive workload, emotional labour
Low job controlNo say in how work is done, rigid micromanagement
Poor supportInadequate training, no supervisor availability
Lack of role clarityUndefined responsibilities, conflicting instructions
Poor organisational change managementRestructures without consultation, sudden role changes
Low recognition and rewardEffort not acknowledged, unfair pay practices
Poor organisational justiceInconsistent policies, favouritism, unfair decisions
Traumatic eventsExposure to distressing material, workplace violence
Remote or isolated workWorking alone, limited access to help
Poor physical environmentExcessive noise, poor lighting, extreme temperatures
Violence and aggressionCustomer aggression, threats, physical harm
BullyingRepeated unreasonable behaviour creating a risk to health
Harassment (including sexual)Unwelcome conduct of a sexual nature, hostile environment
Conflict or poor relationshipsInterpersonal tensions, exclusion, undermining

What employers must do

The regulations impose a structured duty with four steps — the same hierarchy of control framework used for physical hazards:

  1. Identify psychosocial hazards that could give rise to risks. This includes reviewing incident data, conducting worker surveys, analysing job roles, and consulting with workers.
  2. Assess the risks arising from those hazards. Consider the duration, frequency, and severity of exposure, plus the combination of multiple hazards (which amplify risk).
  3. Control the risks using the hierarchy: eliminate → substitute → isolate → engineering controls → administrative controls → PPE. For psychosocial hazards, this typically means redesigning work, adjusting workloads, improving management practices, and implementing clear policies.
  4. Review controls regularly and whenever there's a change in work conditions, an incident, a worker raises a concern, or the controls aren't effective.

Common mistake: Many employers think an Employee Assistance Program (EAP) is enough. It isn't. An EAP is a reactive individual measure. The regulations require proactive, systemic controls that address the hazard at its source. An EAP alone will not satisfy your duty.

Penalties for non-compliance

$3M
Max penalty (body corporate, Category 1)
$600K
Max penalty (individual officer)
5 yrs
Imprisonment (Category 1)

WHS regulators are actively targeting psychosocial hazard compliance. SafeWork NSW, WorkSafe Victoria, and Workplace Health and Safety Queensland have all indicated that psychosocial risk management is an enforcement priority for 2025–2026.

Building your management plan

A compliant psychosocial hazard management plan should include:

Not sure where your business stands? Our free compliance health check assesses your psychosocial hazard obligations alongside 19 other compliance areas — and tells you exactly what to fix.

Does your business manage psychosocial hazards?

Our free health check covers psychosocial risk obligations and 19 other compliance areas in 5 minutes.

Start Free Health Check

No signup required · Takes 5 minutes · Instant gap report