Psychosocial Hazards at Work: Employer Duties & Examples
Psychosocial hazards are parts of the way work is designed, managed and experienced that can harm a worker's psychological or physical health. In NSW, the Work Health and Safety Act 2011 (NSW) requires employers, called PCBUs, to manage them so far as reasonably practicable, and the SafeWork NSW Code of Practice: Managing psychosocial hazards at work (2021) explains how. This guide is for employers, site managers and workers, and it covers what the hazards are, who is responsible, how to manage them and where to go for bullying, injury and fitness-for-work questions.
- Psychosocial hazards such as bullying, harassment, high job demands and poor support must be identified, assessed and controlled under the Code of Practice: Managing psychosocial hazards at work (2021).
- Employers (PCBUs) must manage these hazards like any other safety risk, so far as reasonably practicable, and must consult their workers while they do it.
- Workers who are bullied can report it to SafeWork NSW or apply to the Fair Work Commission for an order to stop bullying, and nobody should be told to put up with it.
- Employers in NSW generally need workers compensation insurance through icare, and operating without a required policy can lead to fines of up to $55,000 and/or 6 months' imprisonment.
What are psychosocial hazards?
A psychosocial hazard is anything in the design or management of work, or in the social setting of work, that could cause psychological or physical harm. It is a safety issue, not a personality issue.
Most hazards come from how work is organised rather than from one difficult person. A site that rosters the same crew for long stretches with unclear instructions can create a hazard without anyone meaning to.
| Term | Meaning | Why it matters |
|---|---|---|
| Psychosocial hazard | A factor at work, such as high job demands, poor support or bullying, that can cause psychological or physical harm. | It is treated like any other work health and safety hazard and must be controlled. |
| PCBU | A person conducting a business or undertaking, which covers most employers, host employers and labour hire providers. | PCBUs carry the main duty to manage risks so far as reasonably practicable. |
| Code of Practice | The SafeWork NSW code, Managing psychosocial hazards at work (2021), which explains how to identify, assess and control these hazards. | It sets out practical guidance that regulators and courts can refer to. |
| Job demands | The volume, pace, complexity and emotional load of the work a person is asked to do. | Sustained high demands are a recognised hazard, not a sign of weakness. |
| Poor support | A lack of help, resources, training or supervision when a worker needs it. | New starters and casual workers are often most exposed. |
| Bullying | Repeated unreasonable behaviour toward a worker that creates a risk to health and safety. | Workers have reporting paths, and employers must manage it as a hazard. |
Who psychosocial hazards apply to
Duties sit with everyone who controls or influences the work. Most private-sector workplaces fall under the national model laws as adopted in NSW, and other states have their own versions, so check the regulator in the state where you work.
| Group | What applies |
|---|---|
| Employers and PCBUs | Must manage psychosocial hazards so far as reasonably practicable, consult workers and review controls when something changes. |
| Full-time and part-time employees | Covered by the employer's duty, and expected to follow reasonable safety instructions and report concerns. |
| Casual employees | Covered in the same way, and often more exposed because of changing rosters and less access to supervisors. |
| Labour hire workers | Employed by the labour hire provider. The provider and the host employer both have duties and must coordinate their controls. |
| Contractors and volunteers | Still protected so far as reasonably practicable, even if the pay and employment rules are different. |
| Small business owners | Face the same duty as larger employers, and may use external HR support to put a simple process in place. |
Psychosocial hazards: duties and rules in NSW
The law is practical and does not require a perfect workplace. It asks you to find the hazards, weigh the risk and act in proportion.
| Item | What it says | Where to read more |
|---|---|---|
| Primary duty | The PCBU must ensure, so far as reasonably practicable, the health and safety of workers, including psychological health. | Work Health and Safety Act 2011 (NSW) |
| Practical guidance | The Code of Practice: Managing psychosocial hazards at work (2021) explains how to identify, assess and control hazards. | SafeWork NSW |
| Bullying paths | A worker can report to SafeWork NSW or apply to the Fair Work Commission for an order to stop bullying. | SafeWork NSW and Fair Work Commission |
| Workers insurance | Compulsory in NSW unless the employer pays $7,500 or less in annual wages, has no apprentice or trainee and is not in a group for premium purposes. | icare |
| Penalty for no policy | Fines of up to $55,000 and/or 6 months' imprisonment for operating without a required policy. | icare |
How to manage psychosocial hazards step by step
The Code follows the usual safety cycle. Run it with your workers, not for them.
- Consult workers and their health and safety representatives early, and ask what is making work harder, slower or less safe than it should be.
- Identify hazards by reviewing rosters, workloads, incident reports, complaints, absences and turnover, then check what each source says about job demands and support.
- Assess each hazard by asking how likely it is to cause harm, how serious the harm could be and how many people are exposed.
- Choose controls that change the work itself first, such as fixing staffing or deadlines, before relying on training or individual coping advice.
- Write the controls into a simple action plan with a named owner, a due date and a way to check the control is working.
- Review the plan on a set schedule and whenever the job changes, such as a new site, a restructure or a major contract.
- Keep records of consultation, decisions and reviews, so you can show what you did and why.
| Worked example | What happens |
|---|---|
| Hazard identified | A warehouse crew has unrealistic dispatch deadlines each Monday morning and little supervisor support for new casuals. |
| Assessment | Workers report constant rushing, and the incident log shows more near-misses on peak days. Exposure is high and the risk is rated as significant. |
| Control | The employer adds a second supervisor on peak days, resets dispatch deadlines and gives new casuals a buddy for their first shifts. |
| Review | The employer checks near-miss reports, asks the crew for feedback and adjusts the roster before the next peak period. |
Employer checklist for psychosocial hazards
Use this as a quick audit. Check your HR processes against the HR compliance checklist at the same time.
- Name who is responsible for psychosocial hazards in your business, and tell workers who to speak to.
- Consult workers when you assess hazards and when you change rosters, targets, supervisors or sites.
- Have a written policy for bullying, harassment and complaints that explains how reports are received and handled.
- Train supervisors to spot early signs, such as repeated sick days, conflict or sudden drops in performance, and to respond calmly.
- Coordinate with the host employer or labour hire provider so every placed worker has a safe system of work.
- Keep records of risk assessments, reports, controls and reviews, and check that they are actually used.
- Recognise good work fairly, and see our guide on employee rewards and recognition for ideas that do not rely on pay.
- Review your workers compensation arrangements with icare and your insurer, and keep your premium information up to date.
Psychosocial hazards and workers compensation in NSW
When a psychosocial hazard leads to an injury, the claim usually goes through the NSW workers compensation system. Prevention is cheaper and kinder than a claim.
Our guide to workers compensation in NSW explains who is covered and how a claim works.
- Check that you hold a workers insurance policy if you pay more than $7,500 in annual wages, employ an apprentice or trainee, or are in a group for premium purposes.
- Remember that operating without a required policy can lead to fines of up to $55,000 and/or 6 months' imprisonment.
- Report any injury to your insurer promptly, and keep notes of what the worker told you and when.
- Support a safe and timely return to work, with duties and hours adjusted if the worker's doctor recommends it.
Psychosocial hazards and workplace bullying
Bullying is one of the most visible psychosocial hazards. Employers must manage it as a hazard, and workers should never be left to simply put up with it.
Our guide to workplace bullying sets out the signs, the reporting paths and what a fair investigation looks like.
- Workers can raise bullying internally first, with a supervisor, HR or a health and safety representative, and keep notes of dates and events.
- Workers can report bullying to SafeWork NSW if the issue is not resolved or they do not feel safe raising it internally.
- Workers can apply to the Fair Work Commission for an order to stop bullying, which is a separate path from a complaint inside the business.
- Employers should respond quickly, protect the worker who reported, give the other person a fair chance to respond and record each step.
Psychosocial hazards and fitness for work
Fatigue, stress and personal circumstances can affect whether someone is fit to work safely. A fitness-for-work policy should be fair, private and tied to the real risks of the job.
Our guide to a fitness for work policy shows how to write one that is clear and respectful.
- Explain in writing what fit for work means for each role, such as safety-critical tasks, plant operation or working at heights.
- Treat health information as confidential, and share it only with the people who need to know to keep the worker safe.
- Offer support first, such as adjusted duties, extra breaks or an employee assistance programme, where the business has one.
- Avoid assumptions about a person's condition, and focus on observable behaviour and the inherent requirements of the job.
What workers can do about psychosocial hazards
If something at work is harming your health, you have options. Start with whatever feels safe and keep a record.
- Write down what is happening, with dates, times, places, who was present and the effect on you or your work.
- Raise the issue with your supervisor, HR or health and safety representative, and ask what will be done and by when.
- If it is not fixed, or if the person causing the problem is your supervisor, go to a more senior manager or the labour hire provider that employs you.
- Contact SafeWork NSW about unsafe work, or apply to the Fair Work Commission for an order to stop bullying.
- Call the Fair Work Infoline on 13 13 94 if the problem also involves pay, hours or dismissal, and speak to your doctor about your own health.
Common mistakes to avoid with psychosocial hazards
- Treating stress as an individual weakness, rather than looking at workload, support and the way the work is organised.
- Offering wellness sessions as the only response, when the hazard is deadlines, staffing or poor management.
- Waiting for a formal complaint before acting, when incident logs, absences and turnover already show a pattern.
- Skipping consultation, so the controls do not match what workers actually experience on site.
- Forgetting labour hire and casual workers, who may sit outside team meetings and informal support.
- Failing to record decisions, which leaves nothing to show a regulator or insurer that you took reasonable steps.
Smaller businesses can start with a simple plan and outside help. Read about an HR business partner and HR support for small business if you do not have in-house HR.
Psychosocial hazards FAQ
What are psychosocial hazards at work?
Psychosocial hazards are factors in the design and management of work, or in workplace relationships, that can harm a worker's psychological or physical health. Examples include bullying, harassment, high job demands and poor support. Employers must manage them as they would any other safety risk.
Who is responsible for managing psychosocial hazards?
The PCBU, which usually means the employer, carries the main duty under the Work Health and Safety Act 2011 (NSW). Host employers and labour hire providers share responsibility, so they should coordinate controls. Workers must also follow reasonable instructions and report concerns they have.
Which code applies in NSW?
In NSW, the Code of Practice: Managing psychosocial hazards at work (SafeWork NSW, 2021) explains how PCBUs must identify, assess and control these hazards. Other states and territories have their own regulators and versions, so check the one where the work is done.
What can I do if I am being bullied at work?
Keep notes, raise it internally and, if that does not work, report it to SafeWork NSW or apply to the Fair Work Commission for an order to stop bullying. Employers must manage bullying as a psychosocial hazard, so a complaint should be taken seriously and handled fairly.
Do psychosocial hazards apply to casuals and labour hire workers?
Yes. Casuals and labour hire workers are covered, and their exposure is often higher because of changing rosters and less access to supervisors. The labour hire provider and the host employer both have duties, so ask who handles reports on your site.
Do small businesses have to manage psychosocial hazards?
Yes. The duty applies to PCBUs of every size, but what is reasonably practicable depends on the size and risks of the business. A short consultation, a simple policy and a clear reporting path are a sensible start for a small team.
Next step: manage psychosocial hazards early
Pick one site or team, consult the workers, and list the hazards that show up in rosters, workloads and complaints. At TQN Personnel, we place and manage labour hire workers across Sydney and can help you plan safe, well-supported placements. This is general information, not legal, tax or financial advice, so check SafeWork NSW, the Fair Work Ombudsman or an employment lawyer for your situation.