The Australian state has led the way in mandating the identification and management of psychosocial hazards in the workplace.
HR Policy Global Insights: With a labour force of around 4 million, Victoria occupies a significant position in the Australian business sector. It is the first state in Australia to implement specific and explicit psychosocial risk regulations and a compliance regime. Employers have been given a reasonable lead time to understand and implement control measures to maintain compliance for the regulations which take effect on December 1, 2025. Companies with employees across various Australian states should anticipate a broader application of similar standards in other states over time.
The Bigger Picture
New Occupational Health and Safety (Psychological Health) Regulations 2025 take effect on December 1, 2025 in Victoria. They mandate that employers identify and manage psychosocial hazards in the workplace with the same rigor as physical hazards.
Key requirements for employers
- Identify psychosocial hazards: Employers must look for factors in work design, management, and interactions that could cause negative psychological responses.
- Control risks: After identifying hazards, employers must implement control measures to eliminate or reduce the risk, following a hierarchy of controls.
- Review and revise controls: Employers must monitor and review the effectiveness of control measures and revise them as needed.
- Apply the hierarchy of controls: Simply providing information, instruction, or training is not enough. Employers must first focus on eliminating risks by addressing the source, for example, through work design and management systems.
Examples of psychosocial hazards include:
- Bullying, aggression, or violence
- Exposure to traumatic events or content
- High job demands or low job control
- Low recognition and reward
- Poor relationships, unclear roles, or isolation
- Gendered violence and vicarious trauma
The regulator has provided a comprehensive compliance code to assist employers to understand the sources of psychosocial risk and the practical steps which can be taken to identify, monitor and reduce risks.
It is noteworthy that the new regulations differ from the initially released draft in two key ways:
- Employers will not be required to report psychosocial complaints to WorkSafe every 6 months
- Employer will not be required to put in place written prevention plans for identified psychosocial hazards (note – this is a requirement in Australia for the state of Queensland).
Notes for Employers
- Non-compliance with the Regulations may constitute a breach of the Occupational Health & Safety Act 2004 (Vic), with penalties of more than $360,000 for individuals and $1.8 million for companies.
- It is therefore important for Boards, Executives and others in leadership positions to understand their obligations as ‘Officers’ in respect to the new regulations
- While written prevention plans are not mandatory, they are considered a good practice and should be considered as part of the overall risk management approach
