Understanding Psychosocial Risk in the Workplace
Psychosocial risks refer to workplace factors that affect employees' psychological health and wellbeing. These risks can stem from poor workplace relationships, high job demands, low job control, workplace violence, bullying, and other factors that contribute to stress, burnout, and mental health conditions.
Effective psychosocial risk management is now a key legal and organisational priority, as failing to address these risks can lead to serious health, safety, and legal consequences for businesses.
Work Health and Safety (WHS) Requirements for Psychosocial Risks
Under Australian WHS laws, employers have a legal duty of care to provide a safe and healthy work environment. This duty extends to managing psychosocial hazards in the same way as physical hazards. Safe Work Australia has reinforced that workplaces must systematically identify, assess, and control psychosocial risks to remain compliant.
Key WHS obligations include:
Identifying psychosocial hazards (e.g., excessive workloads, workplace conflict, job insecurity).
Conducting risk assessments to evaluate the impact of these hazards.
Implementing practical controls to mitigate the risks.
Regularly reviewing and monitoring psychosocial risks.
Consulting with workers to ensure risks are effectively managed.
Regulatory bodies, such as SafeWork NSW, WorkSafe Victoria, and SafeWork SA, are now actively auditing businesses for psychosocial risk compliance. Failure to manage these risks can result in fines, penalties, and enforcement actions.
Psychosocial Injuries and Workers’ Compensation Claims
Psychosocial hazards not only impact employee wellbeing but also contribute to significant financial costs for businesses due to workers' compensation claims. Work-related mental health conditions are one of the fastest-growing categories of claims, with high costs and extended time off work compared to physical injuries.
Key Statistics on Psychosocial Claims:
Work-related mental health conditions account for 9% of serious workers' compensation claims in Australia.
The average time off work for a psychological injury is 30+ weeks (compared to 6 weeks for physical injuries).
Compensation costs for mental health claims are more than double those of physical injury claims.
Bullying, harassment, and work pressure are the most common causes of psychological claims.
To mitigate the risk of costly workers' compensation claims, organisations must take a proactive approach to psychosocial risk management by integrating ISO 45003:2021 into their WHS processes.
ISO 45003:2021 – Psychological Health and Safety at Work
ISO 45003:2021 provides international best-practice guidance on managing psychosocial risks in the workplace. This standard is designed to complement ISO 45001 (Occupational Health and Safety Management Systems) and provides a structured approach to identifying, assessing, and controlling psychosocial hazards.
Key elements of ISO 45003:
Leadership and commitment: Senior management must drive workplace mental health initiatives.
Hazard identification: Recognising factors that contribute to workplace stress, burnout, and psychological harm.
Risk assessment and control measures: Implementing effective controls to eliminate or reduce psychosocial risks.
Employee consultation: Engaging with workers to ensure a mentally healthy workplace.
Monitoring and continuous improvement: Regularly reviewing workplace mental health programs and adjusting strategies accordingly.
Aligning with ISO 45003 ensures businesses stay ahead of compliance requirements and promote a mentally healthy work environment.
The Importance of a Psychosocial Risk Register
A psychosocial risk register is a structured document that records identified psychosocial hazards, associated risks, and control measures. Having a well-documented psychosocial risk register is now a compliance expectation, and regulatory bodies are actively auditing businesses to ensure these records exist.
What Should a Psychosocial Risk Register Include?
List of identified psychosocial hazards (e.g., workload demands, role clarity, workplace relationships).
Risk rating for each hazard (low, medium, high, or extreme based on likelihood and consequence).
Controls in place to mitigate each risk (e.g., workload adjustments, leadership training, conflict resolution strategies).
Consultation process with workers (documented feedback and engagement activities).
Ongoing monitoring and review mechanisms.
A well-maintained risk register ensures businesses are prepared for WHS audits and demonstrates a commitment to workplace mental health and compliance.
2-Hour Online Psychosocial Risk Register Training
To support businesses in meeting WHS compliance obligations, we have developed a 2-hour online training course that provides practical guidance on developing and managing a psychosocial risk register.
What You Will Learn:
✅ How to develop a psychosocial risk register from scratch or update an existing one.
✅ How to risk-rate hazards and prioritise actions based on severity and likelihood.
✅ Assigning practical, effective controls to manage psychosocial risks in the workplace.
✅ Ensuring compliance with ISO 45003 and WHS legislation.
✅ The consultation process – engaging workers and stakeholders in psychosocial risk management.
Psychosocial Risk Management Course Details:
💻 Live, Instructor-Led Training via Zoom
📜 Certificate of Attendance issued by SRA Global
🔢 Limited spots available – Secure your place now!
By enrolling in this training, businesses can ensure they are proactive in managing psychosocial risks, reducing liability and financial exposure from workers' compensation claims, and creating a safer, healthier workplace.
📌 Book your spot today and stay ahead of WHS compliance requirements!
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