Gone are the days when concerns about mental health and wellbeing were brushed aside as “too hard” or “too complicated”. Recent regulatory scrutiny on work, health and safety has ripped the mask off the problem. It’s time for businesses to understand that complying with psychosocial safety isn’t a shiny badge to wear; it’s a lifeline for a healthy work environment. Neglect it, and you’re cruising for a legal bruising, with hefty criminal penalties waiting for employers, officers, and workers who dare to flout the rules.

What is a psychological hazard?

A psychological hazard is something at work that can harm your mental health.

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According to the work health and safety laws, this includes things like:

• Pressure that is way off the charts. Bob is always given work that he cannot possibly handle.
  
• Being treated like a robot. Christina is micromanaged and cannot decide when to take breaks.
  
• Not getting the support you need. Sally is left to fend for herself without proper training.
  
• Roles that are as clear as mud. Angelo’s boss keeps changing his responsibilities like the weather.
  
• Never getting a pat on the back. Trevor rarely hears a word of appreciation.
  
• Brewing conflicts at work, even bullying and harassment, including sexual harassment.

How are the rules changing?

The rules are evolving, with a spotlight now on psychosocial risk.

In the past, work, health and safety laws had the backs of employees, albeit in a somewhat timid fashion.

First came the new rules about how to handle psychosocial risks. SafeWork NSW led the charge with the “Code of Practice: Managing Psychosocial Hazards at Work” in 2021. Then, other regions, such as the Commonwealth, Northern Territory, Queensland, Tasmania and Western Australia, followed suit.

These codes aren’t just ideas. They are orders. Businesses must toe the line with the code or face psychosocial risks head-on. It’s not just paperwork; it’s about finding hidden threats, understanding the damage they can do, and coming up with a plan to eliminate or at least manage them.

But the real bombshell came in June 2022 when the Model Work Health and Safety Regulations made it clear that businesses must take psychosocial risks seriously. It’s not a joke, and every corner of Australia is on board. To comply, you need to uncover psychosocial hazards as if they were hidden treasures, figure out how much harm they could cause, treat them like ticking time bombs, create plans to get rid of the threats or lock them up, and check if your plans are working.

These changes are not just minor tweaks. They declare that businesses must treat psychosocial risks as seriously as physical health and safety. It’s a fight, and your employees’ mental health and wellbeing are on the line.

And if you think the regulators are done, you’re in for a rude awakening. Work health and safety authorities across the board have declared that psychological safety is in their priority for 2023. They’ve set their sights, and you’re in the crosshairs.

What lies ahead?

Currently, there is a way to report serious workplace issues to work, health and safety regulators. However, it does not require businesses to report psychosocial hazards or deal with injuries and illnesses linked to them.

Safe Work Australia, the national work safety regulator, is doing something about it. In July 2023, they initiated a public consultation to revamp the rules for reporting incidents. The proposed changes are significant, including the prompt reporting of suicide attempts, tragic losses, and other fatalities associated with mental harm at work.

This is a big deal. It shows that injuries and psychosocial hazards are important in work health and safety regulation. A storm is brewing, and the legal world needs to prepare.

Why does all this matter?

If you think psychosocial hazards are abstract ideas, think again.

Consider the retail sector. It is a prime example of why you need to pay attention.

NSW has made it a criminal offence to harass or hurt retail workers while they are on the job. The penalties are harsh, too. Harassing someone could mean time in a cell for up to four years, causing physical harm could earn you a cosy six-year sentence, and if you ruin someone’s life, you could be looking at 11 years behind bars.

This is not just a knee-jerk reaction. Research said that 85 per cent of people who work in retail were impacted, and legislators in NSW acted swiftly.

The message is loud and clear: psychosocial hazards are real, dangerous, and landing people in prison. You and your organisation do not want to be caught with your pants down.

The bottom line

As the focus on psychosocial risks intensifies, businesses must act swiftly, with the legal profession taking the lead.

It’s not a gentle nudge; it’s a scream in the dark. Address psychosocial risks or prepare to face the wrath of the law.

It’s not just about following rules. It’s about proactively identifying and managing physical and psychosocial threats at work.

The legal profession isn’t just a spectator. It is the leader, protecting the mental wellbeing of employees and safeguarding the legal interests of organisations.

In this new world, the legal profession isn’t just important. It’s necessary to navigate the tricky path of psychosocial risk management.

This is no longer a choice; it’s a mandate.

Stefanie Costi is a lawyer who empowers victims of workplace bullying and harassment to take decisive action and educates organisations about its impact and preventive measures. Through her advocacy, Stefanie strives to create healthier and more respectful work environments where everyone can thrive without fear. You can find her here.