Psychosocial hazards have become a key focus in workplace health and safety across Australia.

In New South Wales, SafeWork NSW’s Code of Practice: Managing Psychosocial Hazards at Work provides clear guidance for employers, managers, and workers on identifying, assessing, and controlling risks to psychological health and wellbeing.

This Code of Practice supports the Work Health and Safety Act 2011 (NSW) and the WHS Regulation 2017, both of which require employers to manage all risks to health and safety, including those that arise from psychosocial hazards.

What Are Psychosocial Hazards?

Psychosocial hazards are factors in the design, organisation, management, or social context of work that can cause psychological harm.

These hazards can affect how people think, feel, and behave at work and may lead to conditions such as stress, anxiety, depression, or burnout.

Common examples include:

• High job demands or unrealistic workloads
• Poor support from managers or colleagues
• Lack of role clarity or conflicting job expectations
• Bullying, harassment, or discrimination
• Poor change management or job insecurity
• Remote or isolated work
• Exposure to traumatic events or violence

Employer Responsibilities

Under the WHS Act, employers (known as persons conducting a business or undertaking, or PCBUs) must ensure the health and safety of workers, so far as is reasonably practicable. This includes both physical and psychological health.

The Code of Practice outlines a systematic risk management approach that should be used to manage psychosocial hazards, consisting of four key steps:

1. Identify the hazards

• Consult with workers and review workplace data such as absenteeism, staff turnover, complaints, or incident reports.
• Observe how work is performed and consider potential stressors.

2. Assess the risks

• Determine the likelihood that exposure to a hazard will cause harm and how severe that harm could be.
• Consider the duration, frequency, and combination of hazards.

3. Control the risks

• Implement measures to eliminate the hazard where possible or otherwise minimise the risk.
• Examples include redesigning jobs, improving communication and supervision, setting realistic workloads, or providing access to support programs.

4. Review and monitor control measures.

• Regularly check that the controls are working and remain effective.
• Engage with staff during reviews to identify emerging issues.

Consultation and Worker Involvement

Consultation is a key requirement under both the WHS Act and the Code.

Workers often have firsthand knowledge of the pressures and challenges in their roles, so involving them in identifying and managing psychosocial risks leads to more effective solutions.

This also builds trust and reinforces a positive safety culture — one where employees feel heard, supported, and empowered to speak up about issues affecting their wellbeing.

Why Managing Psychosocial Hazards Matters

Addressing psychosocial hazards is not just a legal requirement — it makes good business sense.

Workplaces that proactively manage mental health risks see:

• Improved staff morale and engagement
• Higher productivity and retention
• Reduced absenteeism and turnover
• Fewer workers compensation claims
• A stronger organisational reputation

A supportive workplace culture is one of the best protections against psychosocial harm. It starts with visible leadership commitment, clear communication, and systems that encourage reporting and continuous improvement.

How CHD Partners and CIRT Can Help

CHD Partners works with organisations to integrate psychosocial risk management into their broader safety systems.

Using CIRT (Compliance, Induction, Reporting, and Training), we help clients:

• Conduct psychosocial risk assessments (now built into CIRT).
• Implement policies and procedures aligned with SafeWork NSW’s Code of Practice.
• Provide training for leaders and workers on recognising and managing psychosocial hazards.
• Monitor and review workplace wellbeing data through regular reporting and review processes.

For guidance on managing psychosocial hazards at work, contact CHD Partners. 

Final Thoughts on Understanding Psychosocial Hazards at Work

The SafeWork NSW Code of Practice: Managing Psychosocial Hazards at Work provides practical, actionable guidance for businesses of all sizes.

Compliance begins with awareness and leadership commitment, but success comes from creating a culture where psychological health is valued as much as physical safety.

References:

• SafeWork NSW. Code of Practice: Managing Psychosocial Hazards at Work (2021)
• Work Health and Safety Act 2011 (NSW)
• Work Health and Safety Regulation 2017 (NSW)