From December 1, Victorian employers will be working under a new set of rules that treat psychological health the same way as physical safety. The updated Occupational Health and Safety (Psychological Health) Regulations mean employers must now actively identify, manage and review psychosocial risks in their workplaces, not just respond when something goes wrong.
Although this change is in Victoria, it’s good for employers Australia-wide to review these requirements to see if any actions are needed.
These changes are about preventing the kinds of issues that lead to burnout, conflict, high turnover and costly workers compensation claims. In short, they’re designed to help employers create safer, more sustainable, more productive workplaces.
While many businesses are already taking steps in this space, the new rules set firmer expectations for how risks should be identified, assessed and controlled. They also make it clear that psychological risk management must be regularly reviewed.
What Are Psychosocial Hazards?
Let’s start off with what these hazards actually are. A psychosocial hazard is anything that could cause psychological harm (e.g. harm someone’s mental health).
Common psychosocial hazards at work include:
- job demands
- low job control
- poor support
- lack of role clarity
- poor organisational change management
- inadequate reward and recognition
- poor organisational justice
- traumatic events or material
- remote or isolated work and/or poor physical environment
- violence and aggression
- bullying
- harassment, including sexual harassment, and
-
conflict or poor workplace relationships and interactions
How Do You Manage Them?
You must eliminate or minimise psychosocial risks so far as is reasonably practicable. The good news is that managing these types of hazards is exactly the same as managing a physical hazard in the workplace.
To manage psychosocial risks, apply the four-step risk management process:
- Identify hazards
- Assess risks
- Control risks
-
Review risk controls
In practice, most workplaces will need to take a closer look at how work is organised and how people interact. This may involve reviewing policies, consulting with workers, and checking whether day-to-day practices genuinely reduce harm.
You should also revisit your systems after incidents, staff changes or reports of psychosocial harm. These reviews don’t need to be complex; they simply need to show that the organisation has thought about the risks and taken reasonable steps to address them.
Here’s a practical example:
A small clothing store has noticed an increase in frustrated customers during busy trading hours. Staff have reported feeling anxious about dealing with aggressive behaviour.
1. Identify hazards
The employer recognises that customer aggression, raised voices, impatience, and occasional abusive language, is a psychosocial hazard.
2. Assess risks
Staff explain that the busiest times are Saturday mornings, when the store is short-staffed. This increases stress and the likelihood of cranky customers.
3. Control risks
The employer adds an extra casual worker on Saturdays to reduce queues, sets up clearer signage for returns, and trains staff on how to safely manage difficult customers.
4. Review risk controls
At the end of each month, the employer asks staff whether the new approach is helping and adjusts staffing levels if needed.
Why This Matters…
Psychological injury claims are rising nationally, and they tend to be more expensive and take longer to resolve than physical injury claims. By addressing psychosocial risks early, employers can reduce disruption, maintain morale and show their workforce that wellbeing isn’t just a slogan. The updated regulations also make expectations more consistent across industries and align Victoria with similar changes in other states. For employers that operate nationally, this brings some welcome clarity.
What You Can Do Now
If you haven’t already, this is a good time to check your existing OHS systems and make sure psychological health is genuinely included – not just an afterthought. A simple review of workloads, communication practices, role clarity, change processes and reporting culture can go a long way.
Consultation is central to the new framework, so speaking with workers, OHS reps and supervisors will give you a clear sense of real-world pressures and what needs attention. Many employers are finding that even small improvements make a noticeable difference.
Need Advice
If you need further information or assistance, please contact BetterHR’s experienced HR consultants, and qualified lawyers on 1300 659 563 or visit: Subscribe to BetterHR.
