New South Wales employers must comply with strengthened requirements for managing psychosocial hazards under the Work Health and Safety Regulation 2025. Understanding psychosocial hazards NSW obligations is critical for protecting workers and meeting legal duties.

What Are Psychosocial Hazards NSW Requirements?

Psychosocial hazards NSW regulations require all New South Wales workplaces to systematically identify, assess, and control workplace factors that can cause psychological harm. These obligations apply under the Work Health and Safety Act 2011 (NSW) and Work Health and Safety Regulation 2025 (NSW), which commenced 22 August 2025.

SafeWork NSW provides regulatory oversight, guidance materials, and compliance support for managing psychosocial hazards in New South Wales workplaces.

NSW’s 2025 Strengthened Framework

Work Health and Safety Regulation 2025 (NSW)

The Work Health and Safety Regulation 2025 replaced the 2017 Regulation on 22 August 2025, introducing significant strengthening of psychosocial hazard management requirements. This regulation represents a major shift in NSW’s approach to psychological safety.

Mandatory Hierarchy of Controls

Section 55C of the WHS Regulation 2025 explicitly requires psychosocial risks to be managed using the hierarchy of controls set out in Section 36. This means NSW employers must:

1. First, eliminate psychosocial risks where reasonably practicable
2. If elimination isn’t reasonably practicable, minimise risks by implementing controls in this order of priority:
   • Substitution or isolation of the hazard
   • Engineering controls and work redesign
   • Administrative controls
   • Personal protective equipment (lowest priority)

Critical Requirement: Policies, procedures, training, and Employee Assistance Programmes (EAPs) alone are insufficient. NSW employers must implement higher-order controls such as improved work design, staffing levels, supervision, exposure limits to traumatic content, and cultural/systemic measures.

Work Health and Safety Act 2011 (NSW)

The primary duty of care under section 19 requires persons conducting a business or undertaking (PCBUs) to ensure health and safety of workers so far as reasonably practicable. This expressly includes psychological health and managing psychosocial hazards NSW workplaces face.

NSW Codes of Practice

New South Wales has adopted two key codes of practice:

Managing Psychosocial Hazards at Work Code of Practice: Provides practical guidance for NSW employers on the systematic risk management approach. Updated to reflect the mandatory hierarchy of controls requirement.

Sexual and Gender-Based Harassment Code of Practice (June 2024): Provides specific guidance on identifying, assessing, and controlling sexual harassment and gender-based harassment as psychosocial hazards.

SafeWork NSW’s Enhanced Focus

Respect at Work Taskforce

SafeWork NSW established the Respect at Work Taskforce to specifically address sexual harassment in NSW workplaces. The taskforce conducts targeted compliance programmes, provides specialised guidance and resources, investigates complaints and incidents, and takes enforcement action where necessary.

Increased Psychosocial Scrutiny

SafeWork NSW now has six-monthly reporting requirements to the Minister on psychosocial matters including complaint numbers and types, notices issued, and enforcement actions taken. This reporting requirement signals increased regulatory focus and accountability for psychosocial hazard management.

Industrial Relations Commission Powers

Since 13 October 2025, the NSW Industrial Relations Commission has expanded powers to:

• Deal with sexual harassment disputes and issue orders to stop harassment
• Award damages to employees in bullying cases (extending beyond Fair Work Commission powers)
• Arbitrate workplace bullying and sexual harassment claims for public sector workers
• Issue binding orders for prompt settlement with penalties up to 100 penalty units per contravention

Common Psychosocial Hazards in NSW Workplaces

New South Wales workplaces across diverse industries face these typical psychosocial hazards.

Job Demands and Workload

Excessive workloads, unrealistic deadlines, and insufficient resources create psychosocial risk across NSW industries including finance, healthcare, government, education, and professional services.

Sexual and Gender-Based Harassment

Sexual harassment and gender-based harassment are specifically recognised psychosocial hazards requiring proactive management under NSW’s Sexual and Gender-Based Harassment Code of Practice. This includes unwelcome sexual advances, requests for sexual favours, or other unwelcome conduct of a sexual nature, as well as harassment based on gender.

Low Job Control

Limited autonomy, micro-management, and lack of decision-making authority generate stress. NSW employers should provide appropriate job control balanced with accountability and support.

Poor Support

Inadequate support from supervisors, managers, and colleagues creates psychosocial risk. New South Wales organisations must ensure effective support systems and leadership capability.

Role Ambiguity and Conflict

Unclear roles, conflicting expectations, and inadequate position descriptions cause worker stress. NSW businesses should establish clear role definitions and accountabilities.

Poor Workplace Relationships

Bullying, harassment, discrimination, and interpersonal conflict represent significant psychosocial hazards NSW workplaces must address. The IRC’s enhanced powers signal serious consequences for unaddressed workplace bullying.

Inadequate Recognition and Reward

Lack of recognition, unfair treatment, and inadequate reward systems create psychosocial risk in NSW workplaces.

Organisational Change

Poorly managed change, restructures, and job insecurity generate psychosocial impacts. NSW employers should manage organisational transitions carefully, noting SafeWork NSW issued prohibition notices regarding psychosocial risks from poorly managed redundancy processes.

Violence and Aggression

Customer violence, aggressive behaviour, and threatening situations affect various NSW industries including healthcare, retail, hospitality, and public-facing services.

Remote and Isolated Work

Workers performing remote or isolated work face unique psychosocial risks requiring specific controls.

Traumatic Events

Exposure to traumatic incidents, distressing material, or emergency situations creates psychosocial risk in emergency services, healthcare, legal, and other NSW sectors.

Your Legal Obligations Under NSW Law

PCBUs operating in New South Wales must fulfil specific duties regarding psychosocial hazards.

Primary Duty of Care

Section 19 of the Work Health and Safety Act 2011 (NSW) requires employers to ensure worker health and safety so far as reasonably practicable, including psychological health. This means taking all reasonably practicable steps to eliminate or minimise psychosocial risks.

Mandatory Risk Management Process

NSW employers must implement systematic risk management by:

1. Identifying psychosocial hazards present
2. Assessing risks those hazards create
3. Implementing controls following the hierarchy of controls (mandatory from 22 August 2025)
4. Regularly reviewing control effectiveness

Hierarchy of Controls Application

The WHS Regulation 2025 makes clear that psychosocial risks must be controlled using Section 36’s hierarchy, meaning:

Elimination First: Where reasonably practicable, eliminate the psychosocial hazard entirely (e.g., redesigning work to remove unnecessary stressors, changing organisational structures).

Higher-Order Controls: If elimination isn’t practicable, implement substitution, isolation, or engineering controls (e.g., workload management systems, adequate staffing, role redesign, physical workspace changes).

Administrative Controls: Only after higher-order controls, use administrative measures (rostering, procedures, job rotation).

Training and Information: These are the lowest-order controls and cannot be the predominant or sole control measure. Training must support, not replace, systemic controls.

EAPs Are Insufficient: Employee assistance programmes are supportive but do not satisfy the duty to control psychosocial risks.

Consultation Obligations

Section 47 requires consultation with workers when identifying hazards, assessing risks, making decisions about control measures, and reviewing control effectiveness. Health and safety representatives must be involved where they exist.

Due Diligence Requirements

Officers and senior leaders have due diligence obligations under section 27, requiring them to understand psychosocial hazard risks, ensure appropriate resources for management including higher-order controls, implement appropriate processes and systems, and verify control effectiveness.

SafeWork NSW Resources and Support

SafeWork NSW provides extensive resources supporting psychosocial hazards NSW compliance.

Guidance Materials

SafeWork NSW offers the Managing Psychosocial Hazards at Work Code of Practice (updated for WHS Regulation 2025), Sexual and Gender-Based Harassment Code of Practice, fact sheets and guidance documents, industry-specific resources including hospitality-focused guidance, template tools and checklists, and online learning modules.

Compliance Support and Enforcement

SafeWork NSW provides advisory services and workplace assessments, education programmes and industry seminars, targeted compliance programmes (e.g., hospitality sector sexual harassment inspections), improvement and prohibition notices for breaches, and prosecution for significant failures.

Incident Reporting

Notifiable psychological injuries must be reported to SafeWork NSW. The regulator investigates serious incidents and takes enforcement action where psychosocial hazards were inadequately managed. Recent actions include prohibition notices for redundancy processes creating imminent psychological harm.

Industry-Specific Psychosocial Risks in NSW

Different New South Wales industries face distinct psychosocial hazard profiles.

Hospitality and Entertainment

SafeWork NSW conducted targeted compliance programmes in hospitality venues, issuing 16 improvement notices across 11 venues for sexual harassment WHS hazards. Key issues identified included inadequate consultation processes, insufficient training on sexual harassment risks, limited control measures for psychosocial risks including harassment, and poor incident reporting and investigation systems.

Hospitality venues must consider alcohol-related risks, late-night work vulnerabilities, close customer interactions, and power imbalances.

Healthcare and Aged Care

NSW healthcare facilities face high emotional demands, violence and aggression from patients and visitors, sexual harassment from patients or colleagues, shift work and fatigue, exposure to trauma and death, and workforce shortages creating pressure. Sector-specific controls are essential and must go beyond policies to include staffing, work design, and environmental controls.

Education Sector

NSW schools and universities confront student behavioural challenges, workload and administrative burden, sexual harassment from students, colleagues, or parents, community and parent expectations, and workplace conflict issues. Education employers need tailored approaches including clear boundaries, support systems, and workload management.

Government and Public Sector

NSW government agencies deal with organisational change and restructuring (noting SafeWork prohibition notices for poorly managed change), public scrutiny and political pressure, complex stakeholder management, sexual harassment and bullying risks, and resource constraints. Public sector workers can now access IRC for bullying and harassment orders.

Finance and Professional Services

Sydney’s finance sector faces high-pressure environments, long working hours culture, competitive workplace dynamics creating harassment risks, and job insecurity concerns. Professional services firms need targeted interventions including workload management, cultural change, and anti-harassment measures.

Construction Industry

NSW construction sites experience deadline pressures requiring workload management, job insecurity and labour hire arrangements, workplace conflict and bullying, sexual harassment risks in male-dominated environments, and weather-related stress. Construction businesses require practical, site-appropriate controls beyond policies.

Retail and Customer Service

Customer-facing NSW businesses encounter customer aggression and abuse requiring environmental and procedural controls, sexual harassment from customers or colleagues, irregular hours and casual work creating insecurity, high turnover and understaffing, and performance pressure. These sectors need accessible, practical solutions including safe work design.

Implementing Controls in NSW Workplaces

Effective management of psychosocial hazards NSW workplaces face requires systematic control implementation following the mandatory hierarchy.

Elimination Examples

Where reasonably practicable, eliminate psychosocial hazards by:

• Removing unnecessary job demands and deadlines
• Redesigning work processes to eliminate harassment opportunities (e.g., buddy systems, eliminating isolated work)
• Changing organisational structures to improve diversity and accountability
• Eliminating exposure to traumatic content where possible

Work System and Engineering Controls (Higher-Order)

After attempting elimination, implement higher-order controls:

• Workload management systems with realistic targets
• Appropriate staffing levels preventing overload
• Clear role definitions and decision-making authority
• Effective communication systems and consultation processes
• Fair rostering practices ensuring adequate rest
• Physical workspace design (lighting, visibility, emergency exits)
• Roster systems preventing isolated work
• Job redesign reducing harassment risks

Administrative Controls

Only after implementing higher-order controls, use administrative measures:

• Clear policies and procedures (supporting, not replacing systemic controls)
• Performance management systems designed to minimise stress
• Incident reporting and response procedures
• Regular check-ins and supervision
• Job rotation to limit exposure

Training and Information (Lowest Order)

Training is necessary but insufficient as a sole control:

• Awareness training on recognising harassment and bullying
• Manager training on prevention and response
• Bystander intervention training
• Information about support services and reporting

Critical: Training cannot be the predominant control measure. It must support higher-order systemic controls.

NSW Enforcement Approach and Penalties

SafeWork NSW actively enforces psychosocial hazards NSW compliance requirements.

Regulatory Strategy

SafeWork uses education and awareness activities, compliance advice and targeted programmes, improvement notices for identified breaches (e.g., 16 notices in hospitality sector), prohibition notices for serious risks (e.g., imminent psychological harm from redundancy processes), and prosecution for significant failures.

Targeted Compliance Programmes

SafeWork NSW conducts sector-specific compliance programmes, including recent hospitality sector inspections that assessed 38 businesses and issued improvement notices at 11 venues for inadequate sexual harassment controls.

Penalty Provisions

Breaches of work health and safety duties can result in substantial penalties under NSW legislation:

Category 1 (Reckless Conduct): Up to $3 million for corporations, $600,000 and/or 5 years imprisonment for individuals.

Category 2 (Failure to Comply with Duty): Up to $1.5 million for corporations, $300,000 for individuals.

Increased Penalty Notice Amounts (2025): Failure to comply with improvement notice increased from $4,500 to $11,250 for companies; failure to notify notifiable incident increased from $7,450 to $12,500.

Recent Enforcement Activity

SafeWork NSW has taken enforcement action regarding:

• Inadequate bullying prevention and response
• Sexual harassment in hospitality venues (16 improvement notices)
• Prohibition notice for psychological harm from poorly managed redundancy process
• Failure to implement hierarchy of controls for psychosocial risks
• Inadequate psychosocial risk assessments relying only on policies/EAPs

Workers Compensation for Psychological Injury in NSW

The State Insurance Regulatory Authority (SIRA) and icare manage workers compensation in New South Wales, including psychological injury claims.

Claim Trends

NSW psychological injury claims increasingly relate to work-related stress and burnout, workplace bullying and sexual harassment, exposure to traumatic events, and organisational change impacts. Effective management of psychosocial hazards NSW workplaces face reduces claim frequency and severity.

Prevention Benefits

Proactive psychosocial risk management following the hierarchy of controls delivers reduced workers compensation premiums, lower claim costs and duration, decreased absenteeism and presenteeism, improved productivity and retention, and enhanced employer reputation.

Best Practice Approaches in NSW

Leading New South Wales organisations demonstrate effective psychosocial hazard management aligned with 2025 requirements.

Higher-Order Controls Implementation

Best practice NSW organisations implement workload management systems with realistic demand allocation, adequate staffing levels based on work volume, work redesign to eliminate harassment opportunities, organisational structures promoting diversity and accountability, physical workspace improvements for safety, and management practices preventing bullying and harassment.

Integrated Management Systems

Successful NSW organisations integrate psychosocial risk management with existing WHS systems using hierarchy approach, human resources policies and procedures including recruitment, organisational development initiatives and culture change, business planning processes including resource allocation, and performance management designed to minimise stress.

Leadership and Accountability

High-performing organisations establish visible senior leadership commitment to psychological safety, clear management accountability for implementing higher-order controls, capability development for people leaders on prevention, performance metrics for psychological safety outcomes, and consequences for failing to prevent harassment or bullying.

Beyond Policies and EAPs

Leading organisations understand policies, training, and EAPs are necessary but insufficient, invest in systemic controls addressing work design and culture, allocate resources for higher-order controls, measure control effectiveness through worker feedback and data, and continuously improve based on evidence.

Common Implementation Challenges in NSW

NSW employers commonly face these obstacles when managing psychosocial hazards under strengthened 2025 requirements.

Moving Beyond Policies

Many organisations have relied on policies, procedures, and EAPs. The 2025 mandatory hierarchy requirement demands investment in higher-order controls like work redesign, adequate staffing, and cultural change—requiring resources and commitment.

Resource Allocation

Implementing higher-order controls requires investment. Smaller NSW businesses may struggle but must still comply. SafeWork NSW emphasises that reasonable practicability considers business resources alongside risk severity.

Cultural Resistance

Some workplaces resist addressing psychosocial issues or making systemic changes. Building awareness, demonstrating leadership commitment, showing business benefits, and highlighting enforcement risks helps overcome barriers.

Measurement Complexity

Assessing whether higher-order controls are working requires both objective measures (incident data, workload metrics) and subjective worker experience. Using multiple assessment methods provides comprehensive understanding.

Action Plan for NSW Employers

New South Wales businesses should follow these steps for psychosocial hazards NSW compliance under WHS Regulation 2025.

Immediate Assessment

Review current psychosocial risk management approaches against hierarchy requirements, identify any reliance on policies, training, or EAPs as primary controls, obtain SafeWork NSW codes of practice (general and sexual harassment), engage workers to identify existing concerns including harassment, and assess priority risk areas requiring higher-order controls.

Planning and Development

Develop psychosocial risk management plan incorporating hierarchy of controls, identify higher-order controls needed (workload management, staffing, work redesign), establish genuine consultation processes meeting enhanced requirements, allocate appropriate resources for systemic controls, and define implementation timelines with leadership accountability.

Implementation Phase

Conduct systematic psychosocial risk assessments including sexual harassment, implement priority higher-order controls (not just policies), provide training to workers and managers as supporting measure, establish monitoring systems measuring control effectiveness, and document processes, decisions, and rationale for controls chosen.

Ongoing Management

Regularly review control effectiveness through worker feedback and data, update risk assessments when changes occur or incidents reported, maintain active worker consultation and HSR engagement, monitor incident, complaint, and claim trends, continuously improve based on evidence, and ensure compliance with IRC requirements for harassment/bullying matters.

Getting Support in New South Wales

NSW employers can access various support sources including SafeWork NSW advisory services (1800 641 641) and Respect at Work resources, health and safety consultants specialising in psychosocial risks and hierarchy implementation, organisational psychologists and workplace wellbeing professionals, industry associations and peak bodies with sector guidance, and legal professionals with WHS expertise on NSW requirements.

Mibo for NSW Workplaces

Mibo provides a comprehensive digital platform specifically designed for managing psychosocial hazards NSW employers must address under the WHS Regulation 2025. The solution helps New South Wales businesses comply with the Work Health and Safety Act 2011 (NSW), WHS Regulation 2025’s mandatory hierarchy requirements, and SafeWork NSW’s Managing Psychosocial Hazards at Work Code of Practice.

NSW employers using Mibo benefit from a next-gen psychosocial risk assessment aligned with SafeWork NSW expectations and hierarchy requirements, hierarchy of controls framework guiding control selection, streamlined hazard identification and reporting including sexual harassment, evidence-based control measures for NSW workplaces organised by hierarchy level, worker consultation tools meeting NSW’s enhanced consultation requirements, compliance documentation for SafeWork NSW inspections demonstrating hierarchy application, ongoing monitoring and review systems tracking control effectiveness, and sexual harassment prevention tools aligned with SafeWork’s Respect at Work approach.

The platform is particularly beneficial for NSW organisations operating across multiple Sydney and regional locations, managing remote and isolated workers, coordinating psychosocial risk management across diverse business units, demonstrating hierarchy of controls compliance for regulators, tracking higher-order control implementation and effectiveness, or responding to SafeWork compliance programmes. Mibo simplifies compliance while ensuring systematic management of psychosocial hazards NSW businesses face under strengthened 2025 requirements.

Conclusion

Managing psychosocial hazards NSW workplaces face is a fundamental legal obligation under the Work Health and Safety Act 2011 (NSW). The Work Health and Safety Regulation 2025, which commenced 22 August 2025, significantly strengthens these obligations by mandating use of the hierarchy of controls for psychosocial risks.

This represents a major shift from previous practice where policies, training, and EAPs were often considered sufficient. NSW employers must now implement higher-order controls such as improved work design, adequate staffing, workload management systems, and organisational culture changes to genuinely eliminate or minimise psychological harm.

SafeWork NSW’s establishment of the Respect at Work Taskforce, enhanced IRC powers for bullying and harassment matters, and targeted compliance programmes demonstrate serious regulatory commitment to psychological safety. The Managing Psychosocial Hazards at Work Code of Practice and Sexual and Gender-Based Harassment Code of Practice provide practical guidance for NSW employers to meet these obligations.

By implementing effective risk management processes following the mandatory hierarchy of controls, consulting meaningfully with workers, investing in systemic higher-order controls, and viewing psychosocial risk management as integral to overall workplace health and safety, New South Wales businesses protect workers, demonstrate compliance, and build healthier, more productive workplaces.

Effective management of psychosocial hazards NSW businesses face under 2025 requirements delivers benefits beyond compliance, including improved worker wellbeing and mental health, enhanced productivity and engagement, reduced workers compensation costs, decreased absenteeism and turnover, stronger organisational culture, and reduced legal and regulatory risk from IRC and SafeWork proceedings.