Skip to main content

Psychosocial Risk Inclusion in WHS Regulation

Woman in Pink Jumper

Despite there being general consensus that the term ‘health’ is understood to include both physical and psychosocial determinants, current legislation and its supporting framework does not provide businesses with adequate direction and guidance for the identification and management of workplace psychosocial risks.

Psychosocial risk factors are things that may affect workers' psychological response to their work and workplace conditions (including working relationships with supervisors and colleagues). Examples are: high workloads, tight deadlines, lack of control of the work and working methods.

Next Steps

Increased government commitment to provide enhancements to the management of psychosocial risks in the workplace has resulted in escalating this issue into the C-suite agenda.  

We are now eagerly awaiting amendments to the Work Health and Safety laws (WHS laws) focusing specifically on psychosocial risks. These amendments will be introduced to all jurisdictions covered under the harmonised scheme. In addition, Victoria is looking to modify its Occupational Health and Safety Regulations 2017 to include amendments addressing psychosocial risks, in line with the Boland Report recommendations.

With improved clarity around obligations and expectations for psychosocial safety expected imminently, now is the time for organisations to address these specific people risks in their risk management processes.

Until then

To support organisations in preparing for the release of the amended WHS laws, we have compiled a list of the most relevant and practical resources for addressing psychosocial risks at work.

International Standard for Occupational Health and Safety Management – Psychological Health and Safety at Work: Managing Psychosocial Risks – Guidelines (ISO / DIS 45003)

The new ISO 45003 guidelines provide organisations with information on specifically promoting wellbeing at work and managing the psychological health and safety risks within an occupational health and safety framework or management systems. It addresses numerous ways in which a worker’s psychological health can be impacted, including organisational culture, poor leadership, excessive workload, and unproductive communication styles. The new ISO 45003 standard is seen by many as a long overdue look at psychological health and safety. Whilst there are plenty of ISO standards that look at the physical aspects of health and safety management, little has been done to provide a guided framework around how organisations can protect their employees mentally.

ISO 45003 includes information on how to recognise the psychosocial hazards that can affect workers and offers examples of effective actions that can be taken to manage these. Because ISO 45003 is designed as a guide, rather than a formal accreditation, it recognises that many organisations do not have the capacity to employ specialists to manage psychological health, and that it needs to be handled by people that may be undertaking multiple roles in the workplace.

SafeWork NSW Code of Practice for Managing Psychosocial Hazards at Work (May 2021)

On May 28, 2021, SafeWork NSW released an industry-wide mental health Code of Practice for Managing Psychosocial Hazards at Work (May 2021) to provide organisations with resources and guidance on this issue. While this is a localised response to the Workplace Mental Health issue, it is an exciting development as it is the first resource of its kind in Australia, and many other Australian States and Territories are now following suit and developing their own versions of this resource.

This document is also an approved Code of Practice under Section 274 of the Work Health and Safety Act 2011(NSW) (WHS Act), and in comparison to the previously mentioned resources, the new Code of Practice is more relevant and practical for Australian businesses as it acknowledges the different cultural implications, regulatory frameworks and legislation requirements.

This Code is intended to be read by a business or undertaking (PCBUs) and those who have duties under the WHS Act. Its purpose is to:

  1. Provide organisations, and their representatives, with practical guidance on processes that can be implemented to identify and manage psychosocial hazards at work.
  2. Articulate the roles, responsibilities and obligations of PCBUs.
  3. Outline the steps involved for systematically identifying and managing psychosocial risks in the workplace.

It is also important to know that while there are no fines or penalties associated with failure to comply with the Code, courts and safety regulators may rely on the Code of Practice as evidence of what is known about a hazard(s), and to assist in determining what is considered “reasonably practicable” to address it.

Commission for Occupational Safety and Health, Psychosocial hazards in the workplace: Code of practice, Department of Mines, Industry Regulation and Safety, Western Australia.

Released in February 2022, the Western Australian Psychosocial hazards in the workplace: Code of practice was established to promote practical prevention strategies that improve the working environments within the state.

The Code of Practice highlights the value of effective communication and consultation processes in order to establish proactive and integrated approaches to workplace psychosocial risk that are tailored to individual workplace and workforce needs.

The Code of Practice outlines several targeted psychosocial risk prevention strategies, specifically looking at leadership and workplace culture, workplace behaviours, good work design, safe systems of work, communication and consultation, and the provision of information and training.

Canadian Standard for Psychological Health and Safety in the Workplace (CAN/CSA-Z1003-13 / BNQ 9700-803/ 2013)

Pre-pandemic, the Canadian Standard was widely recognised as the best-practice approach to managing mental health within workplaces. This standard set voluntary guidelines and resources to help organisations promote mental health and prevent psychological harm at work. The Canadian Standard is framed around recognising and taking action on 13 psychosocial factors that can affect the mental health of employees.

Until recently, this standard has been the guiding light for organisations that were proactively attempting to improve the mental health and wellbeing of their employees. Although it did lay the foundations for the way organisations viewed and engaged with mental health risks, it did not fully reflect the Australian or New Zealand workplace experience.

Find Out More

If you are interested in learning more about where your organisation stands in relation to psychosocial risks, please don’t hesitate to reach out to Ella Mansfield

Meet the Author

Placeholder Image

Ella Mansfield

Principal, Mercer Marsh Benefits

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. LCPA 22/263

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”