For years, we’ve understood that if you injure yourself at work, your employer has responsibilities, and you have rights. Physical injuries have long been recognised as workplace hazards, something you can claim compensation for and something businesses must actively prevent.

Now, the Australia is shifting its definition of a workplace injury, to include psychological harms, too. Stress, burnout, trauma and toxic workplace behaviour are no longer seen as personal weaknesses or “part of the job.” New codes of practice around psychosocial risks have been adopted in states across Australian including Queensland, Australian Capital Territory and New South Wales.

Looking specifically at the NSW Work Health and Safety Act, mental health has always been included in the definition of “health” — but with the introduction of the Psychosocial Hazards Code of Practice, employers are now expected to treat psychological risks with the same seriousness as physical ones.

Here's what you need to know.

What is the Psychosocial Hazards Code of Practice?

Under WHS laws, people conducting a business or undertaking — known as PCBUs — must eliminate or minimise psychosocial risks so far as is reasonably practicable. It’s the same legal test used for physical risks, now applied explicitly to mental health.

The Code of Practice doesn’t introduce new laws, but it does clarify how existing obligations apply to psychological harm. There is only a legal effect once a jurisdiction formally approves it, which NSW has. That means that, in this state, workplaces are required to treat psychosocial hazards as genuine safety risks, and they can be held accountable if they don’t.

Put simply: if you work in NSW, and your employer uses this Code of Practice, they have a legal responsibility to protect you from foreseeable psychological harm. This extends beyond things like workplace bullying or harrassment, to everyday pressures, structures and conditions that can erode mental wellbeing.

So, what counts as a psychosocial hazard?

According to the NSW Code, 'psychosocial hazards' are aspects of work and workplace situations that create a stress response — one strong enough to lead to psychological or physical harm.

These hazards can stem from four broad areas:

• How work is designed, organised, managed and supervised – think workload, deadlines, and leadership style
• Tasks or roles with inherent psychosocial risks – such as emergency response, frontline healthcare, or roles involving exposure to traumatic content
• The equipment or physical environment itself – for example, work done in unsafe spaces or environments that heighten stress
• Social factors and workplace relationships – including conflict, poor communication, exclusion or harmful behaviour.

Individually, any of these factors can cause harm. But the Code emphasises that workers are most at risk when multiple hazards stack up — for example, when a high workload is combined with unclear expectations, poor support and conflict within a team.

Some specific examples listed in the NSW Code include:

• Role overload: chronic high workloads, impossible deadlines, unpredictable hours, or work that demands constant emotional labour
• Role underload: monotonous work, or long periods with too little to do
• Exposure to traumatic events: common in emergency services, healthcare, legal roles, or anyone engaging with distressing content
• Inadequate recognition: effort going unacknowledged, or limited pathways for growth
• Unfair or inconsistent processes: especially around performance, rostering, workload allocation, or organisational change

How are psychosocial hazards dealt with?

Like physical risks, psychosocial hazards must be managed through a structured process. The Code of Practice breaks it down into four steps:

1. Identify the hazards

Workplaces need to actively look for sources of psychological harm. This usually involves talking to workers, reviewing complaints or incidents, and noticing patterns of stress or burnout.

2. Assess the risks

Once hazards are identified, employers must consider how often they occur, how severe the impact could be, and whether multiple hazards are happening at once.

3. Control the risks

Employers then need to put practical measures in place. This might mean adjusting workloads, improving communication, offering better supervision, or clarifying expectations.

4. Review and refine

Workplaces change, so employers must keep checking in, making sure the measures are working and adjusting them when they’re not.

Feature image from Suddenly 30.