Psychosocial hazards at work: what NSW employers must do

Psychological injuries can be among the most complex and costly workplace injuries to manage, and regulators have made psychosocial hazards a clear priority. The legal position is now settled: psychosocial risks must be managed with the same rigour as physical risks, using the same risk management process.

This guide explains what NSW employers must do, the hazards the Code of Practice identifies, and how to manage them in a practical way.

What the law requires

The WHS Act defines health as both physical and psychological health, so the primary duty of care has always covered psychological harm. The NSW Work Health and Safety Regulation 2025 now sets out specific requirements for managing psychosocial risks.

Businesses must eliminate psychosocial risks so far as is reasonably practicable. Where that isn’t reasonably practicable, they must minimise the risks so far as is reasonably practicable by applying the hierarchy of control measures. In deciding on controls, they must consider all relevant matters, such as how long, how often and how severely workers are exposed, how hazards interact, and how work is designed, managed and organised.

Common psychosocial hazards

The NSW Code of Practice for managing psychosocial hazards at work identifies common hazards, including:

• Role overload (high workloads or job demands)
• Role underload (low workloads or job demands)
• Exposure to traumatic events
• Role conflict or lack of role clarity
• Low job control
• Conflict or poor workplace relationships
• Poor support from supervisors and managers
• Poor co-worker support
• Workplace violence
• Bullying
• Harassment, including sexual harassment
• Inadequate reward and recognition
• Hazardous physical working environments
• Remote or isolated work
• Poor procedural justice
• Poor organisational change consultation

Hazards often combine. High demands with low control and poor support, for example, create a much greater risk than any one of them alone.

How to manage psychosocial risks

1. Identify. Talk to workers and health and safety representatives, observe how work is done, and look at data such as absenteeism, turnover, complaints, exit interviews and workers compensation claims. Surveys can help, but they don’t replace conversations.
2. Assess. Consider how long, how often and how severely people are exposed, who is most at risk, and how hazards interact.
3. Control. Start with how work is designed: workloads, staffing, rosters, role clarity, decision-making, change consultation, and clear systems for reporting and responding to bullying, harassment and aggression. Then support these with training, information and individual support.
4. Review. Check that controls are working, and review them after complaints, incidents, restructures and other changes.

Why training alone won’t meet the duty

The Code is clear that higher-order controls, such as redesigning how work is done, should be considered before relying on training, information or individual coping strategies. A resilience workshop won’t fix chronic understaffing or unclear roles, and an Employee Assistance Program supports people after harm rather than preventing it.

Warning signs to watch for

• Rising sick leave or turnover in one team
• Repeated complaints about the same manager, process or customer group
• Long hours and skipped breaks becoming normal
• Conflict, withdrawal or reduced performance after a restructure
• Frontline staff dealing with aggressive customers without support

Frequently asked questions

Sources and further reading

• SafeWork NSW: Code of Practice for managing psychosocial hazards at work
• NSW Legislation: Work Health and Safety Regulation 2025

This article is general information only and is not legal advice. Last reviewed October 2026.