Written by Associate, Lucy Diggle and Managing Principal, Jennifer Tutty
A New Era for Workplace Wellness
From 1 December 2025, Victorian employers enter a new chapter in workplace health and safety where psychosocial hazards need to be front of mind.
The Occupational Health and Safety (Psychological Health) Regulations 2025 (Vic) (the Regulations) create clear, enforceable duties to identify, assess and control psychosocial hazards at work.
Psychological health now sits beside physical safety as a core compliance obligation, where employers must take proactive steps to manage risks to mental health, not just respond after harm occurs.
If your business employs people in Victoria, these new rules apply to you. Whether you are running a creative agency, architecture practice, arts organisation, a tech startup or a hospitality venue, you will need structured systems to protect the psychological health of all employees, contractors and labour-hire workers.
This article explains what the new obligations mean and how your organisation can comply effectively while fostering a healthy, high-performing workplace.
What are Psychosocial Hazards?
A psychosocial hazard is a work-related factor that can negatively affect an employee’s psychological wellbeing or cause stress, anxiety, burnout or trauma.
These hazards may arise in the design of work, systems of work, management, or interpersonal interactions.
Examples include:
– Bullying and aggression
– Harassment or gendered violence
– Exposure to traumatic content
– High job demands (tight deadlines, long hours)
– Low job control (little say over how or when tasks are done)
– Poor organisational change management
– Low recognition and reward
– Poor workplace relationships
– Remote or isolated work
– Poor environmental conditions
Any workplace factor that causes negative psychological responses such as fear, humiliation or exhaustion can be a psychosocial hazard.
Why These Changes Matter
The Human and Business Impacts
Psychological injury claims are rising rapidly in Victoria, with mental health–related absences lasting longer and costing more than physical injury claims. The human impact is equally significant. Chronic stress, anxiety and burnout reduce engagement and can damage culture.
The Legal Shift
Victorian employers are already required to ensure the health and safety of employees, which includes psychological health. However until now, in Victoria there has been very little guidance on how this duty is to be met. The new regulations make these duties more explicit by imposing specific obligations on employers in respect of managing psychosocial risks in the workplace.
The Cultural Opportunity
Managing psychosocial hazards is not just about compliance. It’s a cultural investment. Organisations that address mental health risks proactively report higher morale, lower turnover and improved productivity.
The Legal Framework: Who Must Comply?
The Regulations apply to all employers in Victoria.
Employer’s obligations extend to their:
– Employees
– Independent contractors
– Labour-hire workers
The Compliance Method: Identify, Assess, Control, Review
WorkSafe Victoria outlines psychosocial risk management as a continuous improvement cycle of four steps:
- Identify hazards
- Assess risks
- Control risks
- Review and revise controls
Each step requires consultation, documentation and clear responsibility. This is not a “set and forget” model; it requires active review and employee involvement at all stages.
See below for a breakdown of each of the above steps.
Step 1: Identify Psychosocial Hazards
Identification means pinpointing the workplace factors that could cause harm to mental health. Consultation with employees is mandatory and must occur before decisions are made about hazard management.
Action items:
– Engage employees and Health and Safety Representatives in open discussion.
– Use anonymous surveys, exit interviews and direct observation.
– Review patterns in absenteeism, turnover and complaints.
– Identify high-stress areas, excessive workloads or unresolved conflict.
Questions to Guide You:
– Are workloads and deadlines realistic?
– Do employees understand their roles and responsibilities?
– Are support and recognition adequate?
– Are employees experiencing bullying or unreasonable pressure?
Hazards in creative and professional environments often include unpredictable deadlines, demanding clients, and exposure to distressing or reputationally sensitive material.
Step 2: Assess the Risks
Once hazards are identified, assess their level of risk. This means evaluating the likelihood of harm, the potential severity of that harm, and how often exposure occurs.
Key Risk Questions:
– How likely is exposure to occur?
– How severe could the consequences be?
– Are employees repeatedly exposed to multiple hazards?
– Are some employees more vulnerable due to experience, health or role (for example, in High Risk Groups, such as the ones below)?
High-Risk Groups:
– New or young workers
– Migrant employees
– Workers with known pre-existing injuries or trauma
– Employees from minority backgrounds who may face discrimination
Risk assessment helps prioritise which hazards need the most urgent and comprehensive controls.
Step 3: Control the Risks
After assessment, take steps to eliminate risks that create psychosocial hazards where possible.
If elimination is not reasonably practicable, reduce risks through changes to work design, systems, management and environment.
If reducing these risks is not reasonably practicable, employers must provide employees with any necessary information, instruction, training or supervision to enable them to perform their work in a way that is safe and without risks to their health.
The “Reasonably Practicable” Standard
Employers must act as such a reasonable person would in the circumstances by implementing reasonably practicable measures.
When deciding what is reasonably practicable, employers should consider:
– Likelihood and severity of harm
– Available knowledge and control measures
– Suitability and cost of those measures
Examples of Effective Controls
| Hazard | Control Measures |
| High job demands | Adjust workloads, review deadlines, increase staffing, provide rest breaks |
| Low support | Train leaders, provide supervision and peer support channels |
| Bullying or aggression | Introduce zero-tolerance policies, confidential reporting, mediation processes |
| Remote work isolation | Schedule regular virtual check-ins and ensure access to wellbeing resources |
| Poor change management | Communicate early, involve staff, provide transition support |
| Exposure to traumatic content | Rotate tasks, provide counselling and debrief sessions |
Training alone is not enough. It must complement structural and environmental changes.
Step 4: Review and Revise
Effective psychosocial risk management is iterative. Once controls are in place, employers should schedule regular reviews and respond promptly to operational changes, incident data and workforce feedback.
Reviews confirm that controls are effective, ensure no new hazards have emerged, and capture opportunities for improvement. All findings and actions should be recorded in a prevention plan or risk register.
Reviews are required when:
– Work systems or processes change.
– New information about hazards emerges.
– A psychosocial incident or injury occurs.
– An employee or Health and Safety Representative requests a review.
Regular review demonstrates diligence and creates an evidence trail of continuous improvement.
The Prevention Plan: Your Compliance Blueprint
A written Prevention Plan is the organising framework for psychosocial risk management. It consolidates identified hazards, control measures, responsible persons and review schedules.
A good plan should include:
– Organisation details and approval
– Consultation summary
– List of hazards and associated risks
– Controls and responsible officers
– Review schedules and outcomes
Treat the plan as a living document that evolves with your business. Update it whenever systems, roles or workloads change.
Embedding Psychological Health in Workplace Culture
Sustained compliance depends on culture. Policies and assessments set the baseline, but leadership, communication, employee consultation and accountability make psychological health part of the way people work.
Here’s some tips on how to embed psychological health into your culture:
Leadership Commitment
Senior leaders should model healthy behaviour, respect boundaries and respond swiftly to harmful conduct.
Policies and Procedures
Review or introduce policies on bullying, flexible work, fatigue, grievance handling and wellbeing.
Communication and Consultation
Maintain regular communication with staff about psychosocial risks and progress. Employees should see that their input leads to real change.
Training and Development
Train leaders and managers to identify and manage psychosocial risks. Senior Leaders must know how to address conflict, workload and wellbeing issues in line with the regulations.
Monitoring and Continuous Improvement
Track patterns in absenteeism, complaints and turnover. Use this data to refine systems and strengthen risk controls.
Common Pitfalls
Compliance under the the Regulations can fail when good intentions are not matched by structure. Avoid these possible mistakes:
– Relying solely on training or awareness without operational change.
– Failing to document assessments or reviews.
– Ignoring contractors or freelancers who fall within your control.
– Neglecting to consult employees and HSRs.
– Treating psychosocial hazards as an HR issue rather than a safety obligation.
Addressing these gaps early builds resilience into your compliance systems.
The Strategic Advantage of Psychosocial Safety
Strong psychosocial risk management delivers benefits far beyond compliance:
– Reduced absenteeism and turnover
– Enhanced engagement and performance
– Better innovation and collaboration
– Lower insurance costs
– Improved brand reputation and client trust
A psychologically safe workplace attracts talent and creates lasting competitive advantage.
Next Steps for Employers
Immediate Actions:
- Seek legal advice if you are unsure about your obligations or need support putting compliance steps into place
- Review the new Regulations and the WorkSafe Compliance Code.
- Consult employees about psychosocial hazards.
- Conduct a risk assessment and prioritise action areas.
- Document your control measures and assign accountability.
- Complete a Prevention Plan tailored to your workplace.
- Issue a Workplace Wellness Policy to your entire workforce including contractors and labour hire workers.
Ongoing:
– Review risk controls annually, after an incident or after major change.
– Integrate psychosocial safety into your OHS governance.
– Provide regular leadership and employee training.
– Maintain documentation for all consultation and review processes.
How Studio Legal can Help
Studio Legal delivers a structured program to move you from compliance requirements to cultural integration.
Our Workplace Wellness Series combines legal advice, ready-to-implement tools and activation support:
– Fact Sheet and Compliance Step Plan – a detailed legal summary and action checklist for meeting obligations.
– Management Workshop – a focused session for leadership teams covering new laws, compliance expectations and action planning.
– Ready-to-Go or Bespoke Policies – internal Workplace Wellness, Management Policies and Prevention Plans that meet regulatory requirements.
– Staff Presentation – a live session explaining obligations, policies and reporting processes.
Employers can choose between Essentials Packages (ready to go options) or Signature Packages (which add customised advice, tailored policies, leadership development and presentation delivery). Both provide clear, practical pathways to compliance and culture change.
For detailed information, visit studiolegal.com.au or contact our team on (03) 9521 2128 or hello@studiolegal.com.au.
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Frequently Asked Questions (FAQs)
1. When do the new regulations start?
The Occupational Health and Safety (Psychological Health) Regulations 2025 (Vic) take effect on 1 December 2025.
2. Who must comply?
All Victorian employers, including those engaging contractors and labour-hire workers.
3. What are psychosocial hazards?
Workplace factors that harm mental health, such as bullying, high demands, poor support and exposure to trauma.
4. What does compliance involve?
Employers must identify hazards, assess risks, implement control measures, consult employees and review regularly.
5. Is a Prevention Plan mandatory?
While not legally required, it is the best way to demonstrate compliance and accountability.
6. What are the penalties for breaches?
WorkSafe may issue improvement or prohibition notices and prosecute for serious non-compliance.
7. How often should reviews occur?
Whenever systems change, incidents occur, or new hazards are identified — at least annually.
8. How do these rules differ from general OHS obligations?
They specifically address psychological health and require proactive, documented processes.
9. What support is available?
WorkSafe Victoria provides guidance. Studio Legal offers tailored advisory, templates and workshops.
10. Why invest in psychosocial safety?
Beyond avoiding penalties, it enhances wellbeing, productivity and organisational success.
Written by Associate, Lucy Diggle and Managing Principal, Jennifer Tutty
Published 16 October 2025.
Photo by Israel Andrade on Unsplash
DISCLAIMER
The information in this article is of a general nature. It does not constitute formal legal advice and should not be relied on as such. Please see the full disclaimer in our website terms. Please contact Studio Legal if you are seeking advice about a specific legal matter.