SafeWork NSW's psychological health strategy: Increased workplace checks for New South Wales businesses

SPOTLIGHT ON PSYCHOSOCIAL HEALTH – PART 1

SafeWork NSW has announced its Psychological Health and Safety Strategy 2024–2026, building on the progress flowing from the previous NSW Mentally Healthy Workplaces Strategy 2018–2022. SafeWork NSW’s new strategy outlines how it intends to continue to raise awareness of psychological hazards in the workplace, build capability for compliance among New South Wales businesses, and foster a culture of compliance by escalating its enforcement activities. Businesses operating in New South Wales should take steps promptly to review their compliance systems in anticipation of SafeWork NSW’s renewed focus.

This announcement follows recently published data from the State Insurance Regulatory Authority which illustrates a 30% increase in claims citing psychological injuries between 2018-19 and 2022-23, compared to an 11% increase for physical injury claims in the same period.^[1]  The focus of SafeWork NSW’s new strategy aligns with the regulatory priority to reduce the prevalence of psychological injuries occurring in the workplace.

What does this new strategy involve?

SafeWork NSW has set the following strategic goals for its new strategy:

In order to achieve these goals, SafeWork NSW has flagged upcoming education and training initiatives, the publication of guidance tools, and media campaigns. Importantly, as part of this new strategy, SafeWork NSW has also signalled that the focus of its investigation activities will be on large businesses and high-risk industries, specifically the education, healthcare, and social assistance sectors, as well as the broader New South Wales public administration.

In particular, SafeWork NSW has highlighted that businesses can expect additional planned inspector compliance visits and further revisits by inspectors to non-complying businesses. Inspectors will also be completing “Psychosocial WHS Checks” when visiting a businesses or government agency with 200 or more workers.

How should a business respond to SafeWork NSW’s strategy?

Businesses operating in New South Wales should adopt a risk-based approach to implementing safeguards to minimise the risks associated with psychological hazards in their workplace.

Specifically, businesses should:

Practically, this will mean that businesses operating in New South Wales should implement a work health and safety policy, follow the procedures within that policy to review the hazards and risks in their workplace, and then implement control measures to ensure the psychological safety of workers. Consultation with workers should also occur throughout this process.

For example, many businesses have arranged for their workers to have access to employee assistance programs, provided access to additional paid leave entitlements, and undertake regular work allocation and resourcing reviews to avoid burnout and the associated mental health risks. However, ultimately the control measures implemented by any business must be specific to the unique hazards and risks faced by that business. What is appropriate and reasonably practicable for a large business to implement may be unachievable or inappropriate for a small to medium sized business.

It is worthwhile noting that workplaces which are psychologically healthy and implement considered measures to address psychological hazards experience many other material benefits. For example:

• increased productivity, or more accurately, the business can avoid the lost productivity and costs associated with presenteeism and absenteeism;
• reduced staff turnover and a more positive reputation amongst jobseekers; and
• reduced workers’ compensation premiums.

Next steps - Demonstrating compliance

One of the first steps in any SafeWork NSW investigation is to request copies of documents which support the safe system of work implemented by the business. Therefore, it is essential that businesses have documentary evidence to demonstrate they have considered psychological hazards in their workplace and have implemented specific measures to address the risks arising from those psychological hazards.

This may be in the form of a work health and safety policy which establishes an identification and review process for psychological hazards, as well as a documented risk assessment to evidence this review process is occurring. The further benefit of documented risk assessments is that the business can demonstrate that the identified risks have been addressed by control measures. It is also important that businesses document ongoing reviews of hazards and control measures, as well as the steps taken to action the outcome of any review that occurs, to further prove compliance with the obligation to monitor and review psychological hazards, risks and control measures.

For further guidance on how businesses should respond to psychological hazards in the workplace, refer to SafeWork NSW’s Code of Practice: Managing psychosocial hazards at work.

The failure to take the necessary steps to identify and address psychological hazards in the workplace (and have the evidence of doing so) may be that the business and/or its directors will be unable to demonstrate that they have complied with their obligations arising under the Work Health and Safety Act 2011 (NSW). A business (operating as a PCBU) has an obligation to, so far as is reasonably practicable, ensure the health and safety of workers. Directors and other officers have their own personal duties to undertake due diligence to ensure the PCBU is complying with its obligations. To investigate a breach of the PCBU’s compliance, SafeWork NSW may commence an investigation, issue warnings or notices (such as an infringement, improvement or prohibition notice), or even commence a prosecution for serious or repeated breaches. SafeWork NSW's new strategy indicates it will continue to proactively utilise its enforcement tools. 

You can access a copy of SafeWork NSW’s Psychological Health and Safety Strategy 2024–2026 here.