2025 Psychosocial Hazard Laws -What Every Director Needs to Know
Directors, this one’s for you. The 2025 psychosocial hazard laws just made mental health a compliance issue. If you can’t prove you’re managing psychosocial risks, you’re exposed. Here's what every director needs to know
In 2025, NSW and Victoria introduced new laws that put psychosocial hazards — things like stress, burnout, bullying, workload, isolation, and poor management practices on the same legal footing as physical safety risks.
This means that if someone in your workplace is psychologically harmed, and you can’t show that you took steps to prevent it, you can be personally liable as a director or officer.
Employers are now legally required to identify, assess and control psychosocial hazards — prevention is no longer optional. Regulators are inspecting, enforcing and prosecuting. Fines are substantial, but the reputational and cultural costs are often worse.
So what does psychosocial risk look like? You don’t need a “toxic” culture to be at risk. You just need:
-Unrealistic workloads or chronic time pressure
-Poor communication, unclear roles, or leadership gaps
-Conflict or bullying that goes unaddressed
-Constant organisational change or job insecurity
-Teams working remotely with little connection or support
These are all psychosocial hazards which are now legally recognised risks.
The Good News! Prevention is absolutely possible. You don’t need a massive HR department — you just need the right support including :
✅ Confidential assessments, support and early intervention for employees
✅ Training and coaching for managers to spot early warning signs
✅ Psychosocial hazard and work design assessments, for compliance and to guide adjustments
✅ Tailored workshops to reduce risk and build capability
Don’t wait for a complaint, audit, or fine to find out the hard way. Protect your people & yourself — before it’s too late.
support@betterworklife.com.au