In recent years, we have seen substantial development in the implementation of psychosocial hazard regulations in all jurisdictions, other than Victoria. However, this changed in October 2025 when the Victorian Occupational Health and Safety (Psychological Health) Regulations were introduced, coming into effect on 1 December 2025.
The Regulations formally recognise that employee psychological health is as critical as physical safety, placing clear duties on employers to actively identify, assess, and manage risks that could cause psychosocial harm.
Psychosocial Hazards
A psychosocial hazard broadly refers to any factor in the:
- work design;
- systems of work;
- management of work;
- carrying out of work; or
- personal or work-related interactions,
that may arise in the working environment and may cause an employee to experience one or more negative psychological responses that create a risk to their health and safety. The Regulations outline examples of such hazards as including aggression or violence, bullying, exposure to traumatic events or content, high job demands, low job control, low job demands, low recognition and reward, low role clarity, poor environmental conditions, poor organisational change management, poor organisational justice, poor support, poor workplace relationships, remote or isolated work or sexual harassment.
When such hazards are ineffectively unmanaged, they can contribute to risks of both physical and psychological harm.
What do the Regulations require?
It is important to note that employers always had obligations to manage risk to psychosocial safety under the primary duty in the Occupational Health and Safety Act 2005 to provide and maintain, so far as is reasonably practicable, a safe and healthy working environment.
The Regulations, however, provide more detail as to how employers must go about meeting this primary duty with respect to psychosocial hazards.
The Regulations specify that employers must identify and control of psychosocial hazards, and state that if the risks cannot be eliminated, employers must:
- reduce the risk by altering the management of work; the plant; the systems of work; the work design or the workplace environment; or
- if these measures are not practicable or won’t entirely address the risk, use information, instruction or training (noting that these measures cannot be the predominant control measure if the risk can altered as outlined above).
Demonstrating compliance requires a structured, consultative, and well-documented approach to identifying, assessing, and managing psychosocial hazards.
Risks of non-compliance
A failure to effectively manage psychosocial risks in the workplace can expose employers to significant legal and operational consequences.
Non-compliance may result in enforcement activity by WorkSafe, including inspections, the imposition of improvement notices or, in serious cases, prosecution. In parallel, where psychosocial hazards are not well managed, this may result in workers’ compensation claims, absenteeism, presenteeism and broader reputational or operational impacts.
Key Actions for Employers
With the new regulations now in effect, employers should take action to ensure full compliance.
Recommended actions include:
- Conducting a comprehensive gap analysis of existing OHS and HR systems to identify areas requiring alignment with the new regulations.
- Identifying psychosocial hazards specific to their operations.
- Performing risk assessments and prioritising preventative controls.
- Updating or developing policies, procedures, and training programs to incorporate psychosocial risk management, ensuring employees, supervisors and managers are all aware of their responsibilities and expectations.
- Maintaining clear and accurate records to demonstrate compliance and regulatory obligations and effectiveness of control measures.
- Monitoring key indicators to help identify emerging risks and measure control effectiveness (e.g. overtime hours, complaint trends, turnover incidents).
Addressing psychosocial hazards proactively will not only support compliance with the regulations but also support and contribute to a safer and more engaged workplace.
Please contact HR Legal if you require support in respect to addressing the implications of the Regulations on your organisation. We also offer tailored workplace training in respect to psychosocial hazards in the workplace. Get in touch with our team for more information.
