Is Your Company Ready to Address Psychosocial Risks?

On June 6, Safe Work Australia introduced significant revisions to the model Work Health and Safety (WHS) Act and regulations, highlighting two critical adjustments regarding psychosocial risk management and the proposed ban on penalty insurance. These reforms are designed to intensify WHS protocols and enhance workplace safety.

✅Managing Psychosocial Risks

Previously focused on bullying and wellbeing, the scope has now broadened to how work is structured and carried out. New definitions and guidelines for assessing psychosocial hazards and risks have been established, compelling employers to address psychological harm alongside physical safety.

✅The Challenges of Psychosocial Risk

Management and employers face the daunting task of identifying what constitutes psychological harm and adapting workplace dynamics accordingly. This includes addressing the needs of all employees to prevent undue stress or anxiety and monitoring behaviors to mitigate psychosocial risks. While Safe Work Australia has provided a framework for managing these risks, it lacks specific guidance on measuring and managing them, especially in terms of synergistic effects.

✅Insurance Provisions

The amendments introduce offences related to insuring against WHS penalties, essentially prohibiting contracts that cover liability for monetary penalties under the WHS Act. However, businesses canstill insure against investigation costs and legal fees.

✅What This Means for You

These changes are not yet enforceable but are expected to be adopted across Australia soon. Employers should stay informed about WHS law changes and proactively align their psychosocial risk management strategies with the upcoming regulations. Additionally, businesses should reassess their insurance policies in light of these amendments.

Connexus will continue to seek clarity on these regulatory updates and advise on compliance strategies. Despite the intention to reduce workplace stress and anxiety, the burden placed on businesses to solve psychosocial issues may not be a comprehensive solution.

In summary, employers should engage with their staff to address workplace concerns, adjust policies where necessary, and document their efforts to manage psychosocial risks effectively.