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Psychosocial Hazards at Work: What Every Employer Needs to Know in 2025

Learn what Australia’s updated WHS laws mean for workplace wellbeing, and how to assess and manage psychosocial risks in 2025.

A new era of work is emerging, driven by the urgent need to prioritise people as much as performance. In Australia and globally, there's been a profound shift in how we view mental health and wellbeing at work. What was once considered a ‘nice-to-have’ is now a legal, ethical, and business-critical priority.

This shift has been cemented by updates to Australia's Workplace Health and Safety (WHS) laws, which now require organisations to actively identify, manage, and reduce psychosocial risks. These are the factors in a workplace that can cause psychological harm and they’re more common than you might think.

The Numbers Don’t Lie

Mental health statistics tell a confronting story:

  • 1 in 5 Australians aged 16–85 experienced a mental disorder in the past year - that’s over 4.3 million people, many of whom are showing up to work every day with unspoken struggles (ABS, 2025).
  • 44% of global workers report experiencing significant stress on the job, the highest level in more than a decade (Gallup, 2023).
  • Mental ill-health is now the leading cause of long-term sickness absence in Australian workplaces and is estimated to cost the economy up to $12 billion each year. (Thrive at Work / PwC)

It’s costing us - emotionally, culturally, and financially.

The 14 Psychosocial Hazards (Safe Work Australia)

To address these issues, Safe Work Australia has outlined 14 key psychosocial hazards that employers must assess and manage. Here's what they are:

  1. Job demands: Excessive workloads, time pressure or emotional strain.
  2. Low job control: Little autonomy over how and when work is done.
  3. Poor support: Lack of guidance, training, or managerial assistance.
  4. Poor workplace relationships: Conflict, bullying or lack of trust within teams.
  5. Poor role clarity: Unclear job expectations or overlapping responsibilities.
  6. Low reward and recognition: Lack of acknowledgment for contributions.
  7. Remote or isolated work: Limited interaction or support due to physical distance.
  8. Poor environmental conditions: Exposure to unpleasant or unsafe physical environments.
  9. Traumatic events or material: Regular exposure to distressing situations or content.
  10. Violence and aggression: Threats, abuse or assault at work.
  11. Harassment (including sexual harassment): Unwanted behaviour that offends, humiliates or intimidates.
  12. Inadequate organisational change management: Poor communication or support during change.
  13. Low procedural justice: Lack of fairness in decision-making processes.
  14. Low organisational justice: Feeling unfairly treated by the broader system or leadership.

Why It Matters and What’s at Stake

For businesses, ignoring these hazards is no longer an option.

The legal implications are significant but beyond compliance, psychological hazards are deeply tied to team performance, morale, and retention. Organisations that fail to act may face compensation claims, reputational damage, and a disengaged workforce.

“Psychosocial hazards can cause harm to workers' health, safety and wellbeing and they must be treated just as seriously as physical hazards.”
– Safe Work Australia

And it’s not just about avoiding legal consequences. When you proactively support employee wellbeing, your team thrives. You see better collaboration, higher engagement, and sustainable performance.

A Call to Courageous Leadership

This new era of workplace wellbeing calls for a new kind of leadership, one that values human sustainability as much as productivity.

Ask yourself:

  • Have we conducted a psychosocial risk assessment?
  • Do our leaders know how to create psychologically safe environments?
  • Are we doing enough to prevent burnout, or just reacting when it’s too late?

If you’re unsure, you’re not alone, but now is the time to act.

How to Begin Mitigating Psychosocial Hazards

Here are a few steps to start creating safer, more human-centred workplaces:

  • Conduct a psychosocial risk assessment: Evaluate your current environment and identify key stressors.
  • Train leaders and managers: Equip them with the tools to support their teams with empathy, clarity, and fairness.
  • Foster a culture of psychological safety: Encourage open dialogue, active listening and compassionate leadership.
  • Redesign work processes where needed: Simplify workflows, adjust workloads, and provide more autonomy.
  • Support recovery and rest: Foster a culture that genuinely values rest, healthy boundaries, and emotional recovery. The BRAVE™ Burnout Prevention Framework is a complete approach to building sustainable, high-performing teams.

Free Download: Psychosocial Hazards 101

Want a simple, clear summary of what psychosocial hazards are, how they cause harm, and what your WHS obligations are?

Download the free Psychosocial Hazards 101 Guide to learn the 4-step process recommended by Safe Work Australia, plus tips to take action with confidence.

Book a free discovery call to explore how we can support you through the process of identifying, assessing, and managing psychosocial risks in your workplace

At Balanced Elite, we help organisations not just comply with WHS regulations but embed wellbeing into the very fabric of your culture.

We believe culture change starts with courageous leaders and small, strategic shifts that build momentum. Let’s work together to create workplaces where people feel safe, supported, and ready to do their best work. 

Let’s explore what’s possible for you, your team, or your organisation

Whether you’re curious about coaching, workshops, retreats, or workplace wellbeing programs, this no-pressure call is a chance to connect, ask questions, and see if Balanced Elite is the right fit.

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