New Psychosocial Safety Rules

From 1 December, Victorian employers are working under a new set of rules that treat psychological health in 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, not just respond when something goes wrong.

Although this change is in Victoria, it’s a timely reminder for employers Australia-wide to review how psychological health is managed and whether any updates 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 and more productive workplaces.

Many businesses are already taking steps in this space, but the new rules set clearer expectations for how risks should be identified, assessed and controlled – and make it explicit that psychological risk management must be regularly reviewed, not a one-off exercise.

What Are Psychosocial Hazards?

A psychosocial hazard is anything in the design or management of work that could cause psychological harm (for example, harm to 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
exposure to traumatic events or material
remote or isolated work and/or poor physical environment
violence and aggression
bullying
harassment, including sexual harassment
conflict or poor workplace relationships and interactions

How Do You Manage Them?

Legally and practically, psychosocial risks should be managed in the same way as physical hazards in the workplace.

That means applying a simple four-step risk management process:

Identify hazards
Assess risks
Control risks
Review risk controls

In practice, most workplaces will need to look more closely at how work is organised and how people interact. This may involve reviewing policies and procedures, consulting with workers, supervisors and HSRs, and checking whether day-to-day practices genuinely reduce harm (rather than just looking good on paper).

You should also revisit your systems after:

incidents or near misses
significant staff or structural changes
reports or concerns about psychosocial harm

These reviews don’t need to be complicated – but they do need to show that the organisation has thought about the risks and taken reasonable steps to address them.

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.

Identify hazards

The employer recognises that customer aggression, raised voices, impatience and occasional abusive language are psychosocial hazards.

Assess risks

Staff explain that the busiest time is Saturday morning, when the store is short-staffed. This increases stress for employees and the likelihood of cranky customers.

Control risks

The employer:

adds an extra casual worker on Saturdays to reduce queues
sets up clearer signage for returns and exchanges
provides staff with training on how to safely manage difficult customers and when to seek support

Review risk controls

At the end of each month, the employer checks in with staff about whether the new approach is helping, reviews any incident reports and adjusts staffing or processes as needed.

Why This Matters

Psychological injury claims are rising nationally. They are often more expensive and take longer to resolve than physical injury claims.

By addressing psychosocial risks early, employers can:

reduce disruption and unplanned absences
maintain morale, trust and engagement
support managers to have clearer, more confident conversations
demonstrate that wellbeing is a genuine priority, not just a slogan

The updated Victorian regulations also align with broader moves across Australia to treat psychological health as a core part of workplace health and safety, not an optional extra. For employers operating in multiple states, this creates greater consistency in expectations.

What You Can Do Now

This is a good opportunity to check whether psychological health is genuinely integrated into your WHS/OHS systems.

Useful starting points include:

reviewing workloads, rosters and job design for unreasonable demands
clarifying roles, responsibilities and reporting lines
checking your change management, communication and consultation processes
reviewing how you respond to complaints, conflicts, bullying and harassment
confirming that workers know how to report concerns and that they will be taken seriously

Consultation is central to the new framework. Speaking with workers, HSRs and supervisors about real-world pressures will give you clear insights into what needs attention – and where small adjustments could make a big difference.

How Explore Potential Can Help

Explore Potential works with businesses across Australia to build practical, people-centred workplaces that meet their legal obligations and support performance.

We can support you to:

review your current WHS/OHS policies and procedures for psychosocial risks
map and assess psychosocial hazards in your workplace
design or update psychosocial risk management plans
support leaders to confidently manage conversations around workload, behaviour and wellbeing
respond appropriately following an incident, complaint or report

If you’d like to talk about what these changes mean for your organisation – or you’re not sure where to start – please get in touch with the Explore Potential team on 7095 1830 or via your usual consultant.

Important: The information above is general in nature and does not constitute legal advice. You should consider your organisation’s specific circumstances and seek tailored advice where required.