Australian workplace health and safety regulators have significantly increased their focus on psychosocial hazards. This article examines current regulatory expectations and their implications for governance assurance.
The regulatory framework
Psychosocial hazards are now explicitly addressed in workplace health and safety legislation across Australian jurisdictions. The harmonised model WHS laws, codes of practice, and regulator guidance establish clear expectations for PCBUs to identify, assess, and control psychosocial risks.
Key regulatory instruments include:
- Model Code of Practice: Managing psychosocial hazards at work
- State and territory WHS regulations with specific psychosocial provisions
- Regulator guidance materials and compliance resources
- Enforcement policies addressing psychosocial hazards
Enforcement trends
Regulators are increasingly using their enforcement powers in relation to psychosocial hazards. Recent trends include:
- Proactive compliance campaigns targeting specific hazards
- Improvement notices requiring systematic risk assessment
- Prosecutions for failures to manage psychosocial risks
- Director and officer liability actions for due diligence failures
Regulatory focus areas
Regulators consistently emphasise systematic approaches over ad-hoc interventions, documentation and evidence of risk management activities, and genuine consultation with workers about psychosocial hazards.
What regulators expect
Based on published guidance and enforcement activity, regulators expect organisations to demonstrate:
- Systematic identification: Proactive processes to identify psychosocial hazards across all work groups and activities
- Risk assessment: Documented assessment of identified hazards considering likelihood and consequence
- Control measures: Implementation of controls following the hierarchy, with evidence of effectiveness
- Review and improvement: Regular review of risk management approaches and continuous improvement
- Worker consultation: Genuine engagement with workers about hazards and controls
Assurance implications
For boards and officers, regulatory expectations create assurance requirements. Demonstrating due diligence requires evidence that appropriate systems exist and are being implemented. Key assurance activities include:
- Regular reporting on psychosocial risk management to the board
- Independent review of management systems and controls
- Verification that risk assessments are current and comprehensive
- Confirmation of adequate resource allocation
Conclusion
Regulatory expectations for psychosocial risk management are clear and enforcement is increasing. Organisations that implement systematic, documented approaches will be better positioned to demonstrate compliance and protect their governance position.