Code of Practice — Managing Psychosocial Hazards at Work

The full title is the Code of Practice: Managing Psychosocial Hazards at Work, published by Safe Work Australia. The code becomes legally binding from 1 July 2026 under Section 26A of the WHS Act. The code applies to all workplaces and all industries. It identifies 14 common psychosocial hazards: job demands, low job control, poor support, lack of role clarity, poor organisational change management, low recognition and reward, poor organisational justice, traumatic events or material, remote or isolated work, poor physical environment, violence and aggression, bullying, harassment including sexual harassment, and conflict or poor workplace relationships. The code requires PCBUs to identify which psychosocial hazards are present in their workplace, assess the level of risk considering the duration, frequency, and severity of exposure, implement controls using the hierarchy, and review control effectiveness through worker consultation and data analysis.

The code applies to every PCBU in every industry. Psychosocial hazards are present in all workplaces regardless of the nature of the work. Construction and mining industries face specific psychosocial risks from remote and isolated work, traumatic events, and workplace culture. Healthcare and emergency services face high exposure to traumatic events and emotional demands. Education, retail, and hospitality face bullying, harassment, and violence from both colleagues and members of the public. Professional services and corporate environments face risks from excessive workload, low job control, and poor change management. The code places specific obligations on officers to exercise due diligence in relation to psychosocial risk management, meaning directors and senior managers must be actively engaged in identifying and controlling psychosocial hazards, not merely responding to complaints after harm has occurred.

The code requires PCBUs to use the same systematic risk management process for psychosocial hazards as for physical hazards. Hazard identification must go beyond individual complaints to examine systemic factors including work design, organisational culture, management practices, and workplace relationships. Methods for identifying psychosocial hazards include worker surveys, analysis of human resources data including absenteeism, turnover, and complaint patterns, review of incident and workers' compensation claim data, workplace observation, and consultation with workers and health and safety representatives. Risk assessment must consider whether the hazard is a single event or a pattern of exposure, the duration and frequency of exposure, and the severity of potential psychological harm. Controls must follow the hierarchy, with organisational and job design changes preferred over individual-level interventions. The code explicitly states that providing an employee assistance program alone is not an adequate control measure. Monitoring and review must be ongoing, with worker consultation integrated into the review process.

First, conduct a psychosocial hazard identification using a combination of anonymous worker surveys, analysis of HR data including turnover, absenteeism, and formal complaints, review of workers' compensation claims for psychological injury, and consultation with health and safety representatives. Second, assess the identified psychosocial risks using a structured methodology that considers frequency, duration, and severity, and prioritise hazards for control implementation. Third, develop and implement controls that address the root causes of psychosocial risk at the organisational and job design level, such as reviewing workload distribution, clarifying roles and responsibilities, improving change management processes, and establishing clear and accessible complaint resolution procedures. Fourth, provide training for managers and supervisors in recognising psychosocial hazards, responding to worker concerns, and implementing the controls specified in the risk assessment. Fifth, establish ongoing monitoring including periodic worker surveys, regular review of HR and incident data, and scheduled consultation with workers and their representatives to assess whether controls are effective.

Workers' compensation claims for psychological injury have increased significantly across all Australian jurisdictions in recent years, with average claim costs substantially exceeding physical injury claims due to longer recovery periods. After 1 July 2026, failure to follow the code constitutes a standalone offence. Regulators have confirmed that psychosocial risk assessments will be audited alongside physical hazard assessments during workplace inspections. Category 2 penalties of up to $1,731,500 for a body corporate apply where workers are exposed to psychosocial hazards that the PCBU has failed to manage. Improvement notices can be issued requiring PCBUs to conduct psychosocial hazard identification and implement controls within specified timeframes. The reputational consequences of psychosocial hazard enforcement — particularly for bullying and harassment — can be severe. Businesses that proactively implement the code benefit from reduced psychological injury claims, improved retention, and enhanced productivity.