Practical Guide for HR & People Leaders

Managing Psychosocial Hazards: A Compliance Guide for Australian HR

Australian WHS law now requires employers to identify and manage psychosocial hazards with the same rigour as physical ones. This guide sets out a practical five-step framework HR, People & Culture and Operations teams can use to meet their obligations and reduce the risk of psychological injury at work.

What are psychosocial hazards?

Psychosocial hazards are aspects of work design, work systems, management, social interaction and workplace behaviour that can cause psychological or physical harm. Common examples include high job demands, low job control, poor support, lack of role clarity, poor workplace relationships, remote or isolated work, workplace violence, bullying, harassment (including sexual harassment) and exposure to traumatic events.

Under the model WHS Regulations and equivalent state and territory laws (including the Code of Practice on Managing Psychosocial Hazards at Work), a person conducting a business or undertaking (PCBU) must eliminate psychosocial risks so far as is reasonably practicable, and where that is not possible, minimise them.

A 5-step compliance framework

The following steps mirror the risk management process set out in Safe Work Australia guidance and can be adapted to organisations of any size.

Step 01

Identify the hazards

Map the psychosocial hazards present in each role and team. Draw on staff surveys, exit interviews, incident and injury data, workers' compensation claims, absenteeism trends, workload reviews and consultation with health and safety representatives. Pay particular attention to high-demand roles, shift work, client-facing work and teams that have experienced recent change.

Step 02

Assess the risks

For each identified hazard, consider the duration, frequency and severity of exposure and the workers most likely to be affected. Combinations of hazards (for example, high demands plus low support) typically create greater risk than any single factor. Document the assessment so decisions can be reviewed and defended.

Step 03

Control the risks

Apply the hierarchy of controls. Eliminate hazards at the source where possible through changes to job design, workloads, rostering, reporting lines and leadership behaviour. Where elimination is not reasonably practicable, use administrative controls such as clear role descriptions, realistic workloads, respectful behaviour policies, manager training and structured support. Personal-level controls such as stress management and resilience training support the framework but do not replace organisational controls.

Step 04

Consult, communicate and train

WHS law requires genuine consultation with workers and their representatives on matters that affect their health and safety. Publish plain-English information on how hazards are being managed, train managers to recognise early warning signs, and give workers safe, confidential channels to raise concerns without fear of reprisal.

Step 05

Monitor, review and improve

Set leading indicators (for example, participation in wellbeing programs, manager check-ins completed, workload reviews conducted) alongside lagging indicators (claims, incidents, turnover). Review controls after any significant incident, restructure or change in work. Treat psychosocial risk management as an ongoing cycle, not a one-off project.

Compliance checklist

  • Psychosocial hazards are documented at the role, team and organisation level.
  • A written risk assessment exists and is reviewed at least annually.
  • Control measures follow the hierarchy of controls, with organisational changes prioritised over individual coping strategies.
  • Managers are trained to identify early signs of psychological strain and to respond appropriately.
  • Workers have accessible channels to raise concerns and are consulted on control decisions.
  • Incident, claim and turnover data is reviewed against psychosocial risk indicators.
  • Records demonstrate what was done, when, and why, in line with WHS regulator expectations.

Where workplace wellbeing programs fit in

Training on stress regulation, burnout prevention and resilience sits within Step 3 (administrative and worker-level controls) and Step 4 (communication and training). Evidence-informed workshops help workers recognise nervous system responses, apply practical regulation techniques and understand when to escalate concerns. They do not replace the need to address organisational drivers of harm, but they strengthen the overall control framework and demonstrate proactive compliance.

FLOW Workplace Wellbeing delivers healthcare-informed workshops and ongoing support designed to complement your WHS risk management process.

This guide is general information only and does not constitute legal advice. Refer to Safe Work Australia and your state or territory WHS regulator for the obligations that apply to your organisation.