Your Team's Mental Health Is Now a Legal Duty.
Here’s What That Means.
Workplace mental health is no longer just good practice. It is a legal duty. Here is what psychosocial hazards are, what the law requires of businesses of every size, and how to meet that duty without overcomplicating it.
Looking after your team’s mental health is no longer just good practice. It is the law. Australian work health and safety rules now require you to manage psychosocial hazards, the same way you manage physical ones.
Under work health and safety law, health includes psychological health. As the person running the business, This applies to businesses of every size, and getting it right often starts with solid HR and IR foundations.
In Queensland, the Managing the risk of psychosocial hazards Code of Practice has been enforceable since 1 April 2023, and it is among the most prescriptive in the country.
Psychosocial hazards are the features of work that can harm mental health. Excessive demands, low control, poor support, unclear roles, bullying, harassment, violence, and exposure to trauma all count. Your duty is to find them, control them, and review them.
None of this needs to be daunting. It uses the same risk process you already apply to physical safety. This is general information, not legal advice.
If you take one thing from this article, take these four moves
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Everything below is optional depth. Read on for what the law says, what counts as a psychosocial hazard, and how to meet the duty in practice.
Digging Deeper
Below sits the supporting detail. It covers the legal duty, the hazards it captures, what the duty looks like across industries, and the practical steps to meet it.
What the law actually says
The work health and safety duty is not new, but it is now sharply in focus. The WHS Act gives the person conducting a business or undertaking a primary duty of care for workers’ health, and health expressly includes both physical and psychological health.
Recent changes added a clear, positive obligation to manage psychosocial risk, along with codes of practice that explain how to do so. Queensland’s code became enforceable on 1 April 2023, New South Wales acted from late 2022, and most other states and the Commonwealth have followed, with Victoria using its own regulations.
The duty covers businesses of all sizes. It extends to your workers, contractors, and volunteers, and requires you to protect others, such as clients, patients, and visitors, including from harmful behaviour by third parties. You cannot transfer or delegate the duty away.
In Queensland, codes of practice are enforceable. A court may treat the code as evidence of what is reasonably practicable, and an inspector can issue a notice where the standard is not met. A policy on the shelf is not enough.
That sounds heavy, but the standard is reasonableness, not perfection. The law asks what is reasonably practicable for a business of your size and type, so a small firm is not expected to do what a large corporation does.
What counts as a psychosocial hazard
A psychosocial hazard is anything in the design or management of work, the work environment, or workplace behaviour that can harm psychological health. The category is broad, and most of it is ordinary working life done badly.
Common examples include high or low job demands, such as excessive workload or time pressure. Low job control. Poor support from managers or peers. Unclear or conflicting roles. Poorly managed change. Inadequate recognition. Poor workplace relationships and conflict.
They also include remote or isolated work, exposure to traumatic events or material, violence and aggression, bullying, and harassment, including sexual harassment. These hazards are not always obvious; they can accumulate at low levels over time and often combine to worsen the overall risk.
The common thread is control. A hazard is rarely a single dramatic event. More often, it is a normal feature of work, demand, pace, support, or behaviour that is left unmanaged until it causes harm.
What it looks like across industries
The same hazards take different forms across sectors. In trades and construction, the live risks are often remote or isolated work, aggressive clients or members of the public, heavy time and physical demands, and exposure to serious incidents on site.
In professional services, the usual hazards are excessive workload, constant time pressure, an always-on culture, role conflict, and difficult or aggressive clients.
In allied health, staff face exposure to distress and trauma, sometimes aggressive or highly distressed patients, heavy emotional demands, and lone work during home visits.
In not-for-profits, the work is emotionally demanding and often under-resourced, with exposure to clients in crisis and the added duty of looking after both volunteers and paid staff.
Whatever the sector, the task is the same. Look honestly at how your particular work is designed and delivered, and ask where it could be quietly harming the people who do it.
What you must actually do
The duty uses the same four steps you already know from physical safety. Identify psychosocial hazards in consultation with your workers and look for patterns in your own data, such as turnover, absenteeism, and complaints.
Assess the risk, considering how often, how long, and how severely people are exposed. Then control it using the hierarchy of controls. That means starting with how the work is designed and managed, not jumping straight to an awareness session.
Finally, maintain and review the controls regularly, not only after something goes wrong. Record what you found and did, with a simple risk register. Consult your workers throughout, because they see the hazards you may not.
Consultation is not a box to tick. The people doing the work usually know exactly where the pressure sits, so a genuine conversation is often the fastest way to find both the hazard and a workable fix.
Why this matters beyond compliance
Getting this wrong is costly. A psychological injury keeps a worker off for around 27 weeks on average, compared with about 5.5 weeks for a physical injury, and claims for psychological injury are rising.
The encouraging part is that the controls are the same things that lift performance. Manageable workloads, clear roles, fair treatment, and good support reduce both your legal risk and your turnover. Compliance and good business point in the same direction.
How to start, without overcomplicating it
You do not need a consultant to begin. Talk to your team about what is genuinely hard about the work. Pick the biggest hazard and a practical control you can implement. Write down what you find and what you do about it.
Then review it, and keep the conversation going. WorkSafe Queensland has free guidance written specifically for small business. This is general information, not legal advice, so check your state’s rules and seek advice for your particular situation.
Where to from here
Managing psychosocial hazards is now part of running a business safely, in the same way as managing trip hazards or ladders. The duty is real, it applies to you, and it is workable.
Know the duty. Identify your hazards. Control them at the source. Consult and review. Do that, and you meet your obligations while building the kind of workplace people want to stay in.
If you would like help meeting your psychosocial duty, from identifying hazards and writing a practical policy to building it into how your business runs, SBAAS can guide you through it. We help Australian small businesses across trades, professional services, allied health, and not-for-profits get this right. To learn more about how we work, visit https://sbaas.com.au/about-us/ or call (07) 3916 9896 to talk it through.
Sources
Clayton Utz. (2022). Safe Work Australia finalises Code of Practice for psychosocial hazards. https://www.claytonutz.com/insights/2022/august/safe-work-australia-finalises-code-of-practice-for-psychosocial-hazards
McKinsey Health Institute. (2023). Reframing employee health: Moving beyond burnout to holistic health. https://www.mckinsey.com/mhi/our-insights/reframing-employee-health-moving-beyond-burnout-to-holistic-health
Safe Work Australia. (2022). Model Code of Practice: Managing psychosocial hazards at work. https://www.safeworkaustralia.gov.au/doc/model-code-practice-managing-psychosocial-hazards-work
WorkSafe Queensland. (2023). Managing the risk of psychosocial hazards at work Code of Practice 2022. https://www.worksafe.qld.gov.au/laws-and-compliance/codes-of-practice/managing-the-risk-of-psychosocial-hazards-at-work-code-of-practice-2022
WorkSafe Queensland. (2025). Updated guidance: managing workplace psychosocial risks. https://www.worksafe.qld.gov.au/news-and-events/newsletters/esafe-newsletters/esafe-editions/esafe/august-2025/updated-guidance-managing-workplace-psychosocial-risks
Eric Allgood is the Managing Director of SBAAS and brings over two decades of experience in corporate guidance, with a focus on governance and risk, crisis management, industrial relations, and sustainability.
He founded SBAAS in 2019 to extend his corporate strategies to small businesses, quickly becoming a vital support. His background in IR, governance and risk management, combined with his crisis management skills, has enabled businesses to navigate challenges effectively.
Eric’s commitment to sustainability shapes his approach to fostering inclusive and ethical practices within organisations. His strategic acumen and dedication to sustainable growth have positioned SBAAS as a leader in supporting small businesses through integrity and resilience.
Qualifications:
- Master of Business Law
- MBA (USA)
- Graduate Certificate of Business Administration
- Graduate Certificate of Training and Development
- Diploma of Psychology (University of Warwickshire)
- Bachelor of Applied Management
Memberships:
- Small Business Association of Australia –
International Think Tank Member and Sponsor - Australian Institute of Company Directors – MAICD
- Institute of Community Directors Australia – ICDA
- Australian Human Resource Institute – CAHRI
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