The NSW Code of Practice for Managing Psychosocial Hazards at Work provides practical guidance for duty holders in New South Wales. Since 1 July 2026, NSW businesses must comply with an applicable approved Code of Practice or manage the hazard and risk through a different method that provides an equivalent or higher standard of work health and safety. Other jurisdictions have their own laws and guidance.
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: In NSW, an applicable code sets a minimum performance standard or an equivalent-or-higher alternative. Regulators and courts may also consider approved codes when assessing WHS obligations.
- Jurisdiction: This NSW code applies in its NSW legal context. Employers operating in other states and territories should check the applicable local WHS laws, codes and regulator guidance.
- 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