The NSW Code of Practice for Managing Psychosocial Hazards is a key guide for businesses nationwide. Though not mandatory, courts and regulators use it to assess what a PCBU should reasonably know about workplace risks.
The Code helps employers identify mental health risks and apply controls to manage them. Rising psychological injuries and costs from absenteeism and presenteeism highlight the need for this Code to support compliance with the primary duty of care.
Why This Code Matters
- Legal relevance: Even though compliance is not compulsory, the Code is frequently referenced by Safety Regulators and courts to assess whether employers are meeting their obligations under the Work Health and Safety Act 2011.
- National importance: Although issued in NSW, the Code is relevant across all jurisdictions, setting a benchmark for managing psychosocial hazards.
- Growing risks: Psychological injury claims have risen sharply in recent years, making proactive management essential for every employer.
What Are Psychosocial Hazards?
Psychosocial hazards are workplace factors that can harm mental health and wellbeing. Common examples include:
- High job demands and unrealistic workloads
- Poor support from managers or colleagues
- Bullying, harassment, or workplace conflict
- Lack of role clarity or job insecurity
- Remote or isolated work environments
These hazards can lead to stress, burnout, anxiety, depression, and physical health issues if not properly managed.
The code provides guidance around duties and obligations, provides information about known psychosocial hazards and risks.
Employer Responsibilities
Under the Code, PCBUs must:
- Identify psychosocial hazards in the workplace.
- Assess risks to psychological and physical health.
- Implement controls that are reasonably practicable, such as workload management, clear communication, and supportive leadership.
- Review and monitor the effectiveness of these controls regularly.
How ABILITY GROUP Can Help
At ABILITY GROUP, we understand the challenges employers face in managing psychosocial hazards. Over the past two years, we’ve seen a significant increase in psychological claims across personal injury schemes, highlighting the urgent need for effective risk management.
We partner with businesses to:
- Conduct risk assessments for psychosocial hazards.
- Develop and implement tailored control measures.
- Provide training and support for leaders and employees.
- Help organisations build a resilient, safe, and supportive workplace culture.
Key Benefits of Proactive Management
- Reduced claims and costs associated with psychological injury.
- Improved employee wellbeing and engagement.
- Enhanced compliance with WHS obligations.
- Stronger organisational reputation as a safe and responsible employer.
Take Action Today
Managing psychosocial hazards is not just about compliance, it’s about protecting your people and your business. Contact ABILITY GROUP today to learn how we can help you identify risks, implement effective controls, and prevent both physical and psychological injuries in your workplace.
ABILITY GROUP has seen a sharp rise in psychological claims over the past two years. Many clients struggle with managing psychosocial hazards at work, and we are here to help. Contact us to manage risks, prevent injuries, and implement effective controls to protect your people and business.
Title: Code of Practice – Managing psychological hazards at work
Source: NSW Government