Psychological Health Regulations – Our take

Following a much anticipated build up, recently the Occupational Health and Safety (Psychological Health) Regulations 2025 and Psychological Health – Compliance Code were released by WorkSafe for operation in Victoria from 1 December 2025.

The Regulations and Compliance Code rounds out the compliance Framework for Psychological Health in Victoria by articulating the specific obligations and duties of employers in providing a safe place to work, from a Psychological Health perspective.

Employer obligations already exist under the OHS Act – in that they must provide and maintain a working environment for their employees that is safe and without risk. The Regulations and Compliance Code details a Risk Management approach to identify, assess and control Psychological Health risks and helps ensure obligations are met.

The Code:

• The Compliance Code is made up of 4 Parts and 3 Appendices. It works through definitions, obligations, detail and tools to assist organisations – Identify, assess and control psychosocial hazards and risks in the workplace.
• It also details reporting and responding to hazards and incidents – with suggested approaches.
• It emphasizes that Psychological Hazards can be a factor in any of the following:
  • Work design,
  • Systems of work,
  • Management of work,
  • Carrying out the work or
  • Personal or work related interactions.

• It provides significant detail for 16 possible Psychosocial Hazards :

1. Aggression or violence
2. Bullying
3. Exposure to traumatic events or content
4. Gendered violence
5. High job demands
6. Low job control
7. Low job demands
8. Low recognition and reward
9. Low role clarity
10. Poor environmental conditions
11. Poor organisational change management
12. Poor organisational justice
13. Poor support
14. Poor workplace relationships
15. Remote or isolated work
16. Sexual harassment

• For each hazard, it provides clear and concise – Examples of the Hazard, Examples of Risk Controls and Examples of Mitigation strategies through providing examples of information, instruction or training that can support the controls.

Our Take:

• The primary purpose of the Compliance Code is to implement a Risk Management Framework to the organisation – specifically around Psychological Health to Identify, Assess and Control Risks.
• In theory, this builds on an established Risk Management approach embedded within an organisation. We know for many businesses, this is not the case, and this may be cause for alarm.
• The Compliance Code really does highlight the potential harm poor people systems, practices and ways of work can have on employees.
• The guidance provided in the Compliance Code is a solid foundation to take a Risk Management approach to Psychological Health your workplace.

The Opportunity:

Putting in place some frameworks, people management tools and strategies will go a long way to mitigating the hazards highlighted from a Psychological Health perspective. Their implementation would be considered Controls from a Risk Management perspective:

• Employment Contracts: the implementation of these make the employment relationship really clear. The pay and conditions, the Award or Agreement alignment and the type and function of employment that an individual is being engaged, is a solid foundation to build role clarity and expectations (Hazards 5,6,7,9,11,13,13,14,15).
• Position descriptions: are a great way of providing clarity and direction of a role within an organisation. They detail clear expectations from the outset. They are critical from a recruitment perspective in establishing expectations, and just as important throughout the ongoing employment relationship in maintaining clarity and focus of the role. (Hazards 5,6,7,9,11,13,13,14,15).
• Policy, procedures and training so employees and managers are aware of the expectations of the organisation and are provided with the support to manage situations as they arise. (Hazards 1,2,3,5,6,7,8,9,11, 12,13,13,14,15,16).
• Clear and Accountable reporting lines – Organisation charts and direct supervision lines, including Delegations of Authority, are really great ways to articulate where individuals fit in an organisation and show the support available to them. It also enables clarity in responsibility and hierarchy. (Hazards 9,13,14)
• Performance appraisals and regular employee catch ups are great ways to provide support to employees and foster good manager and employee relationships by ensuring clarity in expectations and goal setting aligned with the organisations direction. (Hazards 5, 6, 7, 8, 9, 13, 14)
• Team meetings/ tool box meetings and other forms of team communication are great ways to provide clarity around roles and direction, as well as any foreseeable changes that are on the horizon. Effective communication channels enable great insight into what is happening and enables a consistent organisation message to be conveyed. (Hazards 5, 6, 7, 8, 9, 11, 12, 13, 14)
• EAP – Employee Assistance Programs are a really useful way of providing independent, confidential support to employees by professionals trained in this work. They do come at a cost, however you may be surprised at the benefits that they offer. (Hazards 2, 3, 5, 11, 12, 13, 14)
• Employee Engagement surveys – By asking employees their opinions and thoughts on their experiences at work is a really useful tool to make changes that are important to them. It also provides an opportunity for a voice, and being heard – critical elements to identify potential psychological hazards direct from your workforce. (Hazards 5, 13, 14)
• Rewards and Recognition programs – by celebrating success in its many forms – small and large – goes a long way to show employees you value their contribution. (Hazards 8,13, 14)

On first review, it does seem like an onerous task to develop, consult and then implement a Risk Management approach to all things Psychological Health, however, by going on this journey, it really will show some improvements business can make to the way they manage their people, and look to prevent psychological hazards from becoming significant incidents that may have lasting impacts on individuals and organisations.

It emphasizes that Employers can no longer view that good People Management systems and practices are a nice to have or an ambitious desirable state, there is now a compliance requirement to have good systems of work and practices in place to support the Psychological Health of employees.