In Short
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All jurisdictions must now address psychosocial risks (such as bullying, harassment and excessive workload) the same way they manage physical risks
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NSW has broadened the definition of psychological injury, placing greater responsibility on employers
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National updates on fatigue, heat stress and gig-economy coverage may increase WHS obligations
Tips for Businesses
Review how work is designed, assess psychosocial hazards and update your WHS policies. Make sure managers understand their role in preventing psychological harm and responding to concerns early. If you use contractors or gig workers, keep across potential changes to insurance and workers’ compensation cover.
Officers must continually ensure their organisations stay compliant and remain informed about work health and safety issues. This WHS update highlights recent changes to support officers in meeting their obligations and keeping up to date with WHS developments.
Legislative Update
New Victorian Psychological Health and Safety Regulations
From 1 December 2025, Victoria’s new Occupational Health and Safety (Psychological Health) Regulations came into effect. These Regulations require employers to:
- identify psychosocial hazards in the workplace; and
- to eliminate or reduce psychosocial risks so far as is reasonably practicable.
Importantly, because similar regulatory frameworks are now in place across Australia, all jurisdictions require workplaces to manage psychological hazards under work health and safety laws.
To effectively address psychosocial hazards, employers may need to go beyond simply providing training or information. They need to consider making meaningful changes to work design, organisational structure, and workplace systems. This involves actively evaluating:
- how work is carried out;
- consulting and engaging with employees to identify potential issues; and
- implementing practical measures to prevent or minimise psychological harm.
NSW Passes Major Workers Compensation Reform Bill
On 18 November 2025, the NSW Parliament passed the Workers Compensation Legislation Amendment Bill 2025, introducing significant reforms to strengthen the workers’ compensation scheme.
Moreover, a significant change is the introduction of more precise, more comprehensive definitions for psychological injuries, which now explicitly include:
- bullying;
- excessive work demands;
- racial harassment; and
- sexual harassment.
The reforms also create a dedicated jurisdiction within the NSW Industrial Relations Commission to manage specific psychological injury claims and provide more explicit guidance on what constitutes “reasonable management action”. As such, this helps to distinguish fair and lawful managerial practices from conduct that may contribute to psychological harm.
By strengthening definitions and clarifying what constitutes reasonable management action, the reforms help employers get ahead of potential claims.
New Codes of Practice
Safe Work Australia has released a new model Code of Practice that provides practical guidance to employers on managing health and safety risks arising from workplace fatigue.
As summer approaches, the ACT has introduced its distinct Code of Practice: Managing the Risks Associated with Extreme Temperatures, which provides guidance for employers to identify and manage heat stress, as well as a decision-making framework to assess and control risks associated with cold stress.
Continue reading this article below the formNational Policy on Workers’ Compensation for Gig Workers
SafeWork Australia has developed a new national policy position to improve workers’ compensation protections for people working in the gig economy. Since many gig workers are often engaged as independent contractors, they continually fall outside traditional workers’ compensation systems. This national approach opens the door for states and territories to broaden access to compensation for injuries sustained while performing gig work.
If your organisation engages gig workers, you should speak to your insurer or an insurance broker to confirm coverage, discuss any necessary updates and ensure you have adequate insurance coverage policies in place.
Learn how to manage employment disputes and effectively protect your business from legal action. This guide delves into the most common employment disputes.
Cases and Incidents
What Happened?
In 2022, workers at a retail display installation company were struck by a sunglasses display cabinet that was only partially secured to the wall while they were restocking it.
Fortunately, the impact did not result in injuries, but the incident highlighted a significant hazard posed by falling objects in the workplace.
What Was the Outcome?
In entering its guilty plea, the company acknowledged that it could have reasonably eliminated or minimised the risk to workers by assembling the cabinet with all supplied components and adequately fixing it to the wall. Proper installation would have removed the hazard.
As a result, the company was fined $90,000 and ordered to pay the Prosecutor’s costs.
Key Takeaways
This case highlights that simple, low-cost controls, such as proper installation, adequate supervision, staff training, and adherence to manufacturer instructions, can prevent serious incidents. Investing time and resources in these fundamental measures is far more cost-effective than facing prosecution and financial penalties after an avoidable incident.
Work Health and Safety is fundamentally about taking steps to eliminate or minimise risks, so far as is reasonably practicable, to prevent harm before it occurs. This case is a prime example of that principle and reminds employers that liability can arise even in the absence of an injury.
Questions?
If you need legal assistance with a WHS matter or need help identifying an officer, book a consultation call on Prism. As a member, you can request unlimited legal advice consultations.
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