Managing Psychosocial Hazards in the Workplace: Is Your Business Ready?

New legislative changes have now come into effect which requires all Australian workplaces to identify and manage psychosocial hazards and risks alongside physical risks to workers. These changes apply to small, medium, and large businesses alike, and are non-negotiable.

Businesses in Queensland now have a duty of care as a new Code of Practice on managing ‘psychosocial hazards’ has been implemented across Australia. All businesses are included no one is exempt. under the Work Health and Safety Act 2011 (Qld) to manage psychosocial risks in the workplace.

Business Owners and CEOs should ensure they have taken all reasonably practicable steps to gain an understanding of the psychosocial risks within their organisations and ensure they implement processes, programs and policies to ensure compliance and minimisation of psychosocial risks to workers and customers otherwise they can leave themselves and the organisation open to large employment and lawsuits.

“Psychosocial hazards refer to aspects of work design, the work itself and the interactions between employees which can impact their mental health and emotional wellbeing”

What Are Psychosocial Hazards & Risks?

  • Exposure to traumatic events (e.g., accounts of abuse or neglect)

  • Violence and aggression from workers, customers, or the public

  • Bullying and harassment, including repeated unreasonable behaviour and discrimination

  • Lack of role clarity (e.g., conflicting or changing responsibilities and expectations)

  • Job demands, including high or low levels of effort and excessive time pressures

  • Work design, such as highly repetitive tasks

  • Poor organisational change management, including insufficient information, consultation,

    training, or support during times of change

  • Poor organisational justice and support

  • Low reward and recognition within the organisation

  • Poor workplace relationships, including interpersonal conflict

  • Remote or isolated work

Managing Psychosocial Compliance in the Workplace

How we interact at work, the design and management of the work that we all do, and the environment we work in can impact on our psychosocial health – both positively and negatively. It is normal for all of us to experience some level of stress during our working lives – when this stress becomes frequent, severe, or prolonged, it impacts our health and exposes the employer to lawsuits and reputational risk.

Safe Work Australia has released an infographic to assist employers with this process. It recommends managing psychosocial hazards by following the same four-step risk management process that is used to manage physical hazards.

This involves undertaking the following steps in consultation with workers:

  • Identify any psychosocial risks;

  • Assess the impact of all identified risks;

  • Control risks by eliminating and minimising them as much as possible; and

  • Review any control measures implemented, to ensure they are effective.

Due Diligence on Psychosocial Risks

Officers and managers should be particularly mindful of how this change impacts on their due diligence obligations under the WHS Act.

Managers should ensure that they have taken all reasonably practicable steps to gain an understanding of the psychosocial risks to ensure that the business has and implements, processes for complying with the duty to eliminate or minimise psychosocial risks to workers.

Consequences of Psychosocial Non-compliance

The consequences of not being compliant in your business can lead to:

  • Employment and labour lawsuits;

  • Immediate shutdown of operations;

  • Reputational damage;

  • Large fines; and

  • Business interruption.

How Harissa Business Partners Can Help

Step 1

We undertake a Psychosocial Risk Assessment within your business and give you a score and report that identifies gaps and areas for improvement. 

Step 2

The report outlines the risk level and the areas the business is most exposed. We build a detailed roadmap that addresses the risk and exposure areas identified in the Psychosocial Risk Assessment. This will help to ensure your HR practices, programs and procedures are up-to-date and compliant to minimise HR lawsuits and drive employee engagement.

Step 3

We work with you to develop, manage and implement business processes, programs and procedures in line with the new legislation to ensure your business is compliant with the new psychosocial risks and hazards legislation relating to health and wellbeing of employees.