From 1 July 2026, NSW employers must be able to demonstrate how they are managing psychosocial hazards in the workplace, not simply rely on workplace policies.**
Amendments to the Work Health and Safety Act 2011 (NSW) now require persons conducting a business or undertaking (PCBUs) to either comply with an approved Code of Practice or demonstrate that an alternative approach provides an equivalent or higher standard of health and safety.
For most organisations, the benchmark will be the **NSW Code of Practice: Managing psychosocial hazards at work**, making it more important than ever to have a documented and proactive psychosocial risk management framework.
What has changed?
Psychosocial hazards—including excessive workloads, bullying, harassment, workplace violence, poor role clarity, inadequate support and poorly managed organisational change—have long fallen within employers’ WHS obligations.
The key change is that employers must now be able to demonstrate how these risks are identified, assessed, controlled and regularly reviewed. A policy sitting on an intranet or in an employee handbook will no longer be sufficient evidence of compliance.
Instead, employers should have practical systems in place that actively manage psychosocial risks as part of their overall WHS framework.
What employers should do
NSW employers should review their WHS systems and ensure they:
- identify psychosocial hazards across roles, teams and work practices;
- consult workers about psychosocial risks and workplace concerns;
- undertake and document psychosocial risk assessments;
- implement effective control measures, prioritising higher-order controls such as workload redesign, improved resourcing and clearer reporting structures;
- regularly review whether controls remain effective; and
- maintain records demonstrating the steps taken to manage psychosocial risks.
Employers should also ensure officers and senior leaders receive regular reporting on psychosocial risks as part of their due diligence obligations under WHS legislation.
Why it matters
SafeWork NSW has reported increasing regulatory activity relating to psychosocial hazards, reflecting a growing focus on psychological health as a core workplace safety issue.
Businesses that cannot demonstrate a systematic approach to managing psychosocial risks may face enforcement action, including improvement notices, prosecutions and significant penalties under the WHS Act.
Key takeaway
NSW employers should treat these reforms as an opportunity to review their psychosocial risk management framework. Regulators will expect more than well-drafted policies—they will expect evidence of a proactive, documented and regularly reviewed system for identifying and controlling psychosocial hazards.
Watch this space Victoria!
*This article is intended to provide general information only and should not be relied upon as legal advice. Specific advice should be obtained for individual circumstances.*
