The Victorian Government is bolstering existing laws around psychosocial hazards in the workplace, with new regulations expected to take effect in December this year.
According to a statement by Victoria’s Minister for WorkSafe and TAC, Ben Carroll, the new regulations will strengthen existing laws, make employer obligations clearer, and recognise psychosocial hazards to be just as important as psychical hazards.
“These regulations will provide clarity for employers about what they need to do to keep their workers safe from psychosocial hazards and uphold their duties under the OHS Act,” said Carroll.
Laws around mental health are getting stronger
If talk about psychosocial hazards sounds familiar to you, it’s for good reason: Victorian businesses (as well as businesses in every other state and territory) already have an obligation to protect employees from psychological harm.
Victoria is the last state to introduce its own legislation. It previously relied on the Occupational Health and Safety Act 2004 and a Code of Compliance to reduce these work-related risks.
Regulation around preventing psychosocial hazards is now in place around the entire country and only getting stronger. But what are psychosocial hazards, and how do laws like these impact your business’ operations?
A legislative trend that will impact your small business
Psychosocial hazards are factors that can negatively impact workers’ mental health, well-being, and overall job satisfaction.
These could include overwhelming job demands, lack of role clarity, and/or poor support in the workplace.
Organisational social worker Louise Thompson said that small businesses in particular can be at risk of psychosocial hazards.
“Ironically, the same qualities that make working for an SME appealing – such as agility, flexibility, and a reputation for less bureaucracy and red tape – also create psychosocial hazards and a risk to worker safety,” Thompson explained. “Many operate on stretched resources, have a hands-off approach to safety, and reactive instead of proactive systems.”
Thompson wrote about these hazards – and how they can be prevented – in a previous article for Inside Small Business. You can read it here.
What do I need to do as a small-business owner?
As a small-business owner, you need to make sure you are taking steps to prevent psychological harm from occurring in your workplace. If you have been found to have failed in your obligation to prevent harm, you could face fines, legal action, and workers’ compensation claims.
Australia has seen a 30 per cent surge in mental health-related workers’ compensation claims over the four years to mid-2023. In Victoria alone, 18 per cent of all new WorkCover claims in 2023-24 were about work-related mental injuries.
The good news is that most states and territories (bar South Australia, Tasmania, and Northern Territory) have a compliance code to help employers meet their obligations and reduce legal risks.
To complement the strengthened regulations, the Victorian Government will provide employers with “extra guidance” around prevention plans.
For more information about mental health hazards in the workplace and how you can prevent harm to employees, including SME-specific information, Safe Work Australia has a comprehensive collection of resources on the topic.
