First published on Friday, September 12, 2025
Last updated on Friday, September 12, 2025
Jump to section
In 2025, Australian employers face a growing responsibility to manage not just physical risks in the workplace, but psychosocial hazards—factors that can impact an employee’s mental health and wellbeing. With updated WHS regulations now mandating psychosocial risk management across most states, understanding how to assess and control these hazards is essential for compliance and employee care.
What are psychosocial hazards?
Psychosocial hazards are elements of work design, management, and social interactions that may cause psychological harm. Unlike physical risks, these hazards often go unnoticed—yet they can lead to serious outcomes like stress, burnout, anxiety, and depression.
Common examples Include:
Excessive workloads or unrealistic deadlines
Poor support from supervisors or colleagues
Bullying, harassment, or exposure to traumatic events
Low job control or unclear role expectations
Isolation, especially in remote or hybrid work settings
Why psychosocial risk management matters in 2025
Recent updates to WHS laws across NSW, VIC, QLD, WA, and ACT now require employers to treat psychosocial risks with the same level of seriousness as physical hazards. This shift reflects growing awareness of mental health in the workplace and aligns with international standards like ISO 45003:2021.
Failing to manage these risks can result in:
Legal penalties for non-compliance
Increased absenteeism and turnover
Reduced productivity and morale
Reputational damage
How to Conduct a Psychosocial Hazard Assessment
Employers should follow the standard WHS risk management process, adapted for psychosocial risks:
1. Identify Hazards
Use a combination of:
Employee surveys and feedback
Exit interviews and performance reviews
Absenteeism and turnover data
EAP (Employee Assistance Program) usage trends
Observations of workplace culture and dynamics
2. Assess the Risks
Evaluate:
Severity: How serious is the potential harm?
Frequency: How often are employees exposed?
Duration: How long does the exposure last?
Vulnerability: Are certain groups more affected (e.g. new hires, lone workers)?
3. Control the Risks
Apply the hierarchy of controls:
Eliminate the hazard where possible (e.g. remove unrealistic KPIs)
Minimise through:
Clear role descriptions
Manager training in mental health awareness
Flexible work arrangements
Anti-bullying policies and reporting mechanisms
Regular check-ins for remote workers
4. Review and Monitor
Conduct regular audits and employee feedback sessions
Update policies and procedures as needed
Track the effectiveness of controls over time
Psychosocial hazard management is no longer optional—it’s a legal and ethical imperative. By proactively assessing and controlling these risks, employers can foster a safer, healthier, and more productive workplace.
Identify hazards in the workplace with BrightSafe
Implementing a health and safety system is imperative for SMEs like yours. Designed for the protection of your staff and business, BrightSafe is the go-to choice.
See how you could minimise hazards and risks with our end-to-end system:
Easily identify and safeguard your business against 600+ health and safety risks
Prevent hazard exposure and accidents with real-time reporting
Stay compliant with an accurate digital audit trail
With 24/7 access to qualified health & safety consultants, plus a comprehensive library of risk assessments, templates, posters, and factsheets, this is the solution that your business needs.
