The PsychProof Newsroom

Comcare successfully prosecuted the Department of Defence for failing to manage psychosocial risks, and SafeWork NSW ordered two major organizations to pause their planned restructures after finding a 'serious and imminent risk' of psychological harm to employees. Employers must identify psychosocial hazards and implement controls, including completing a psychological safety risk assessment using a 4-step process.

The NSW government is investing $127.7 million over four years to deploy specialised psychosocial inspectors. Under the new measures, SafeWork NSW inspectors will focus on preventing and addressing workplace mental health risks and will be able to issue on-the-spot fines to strengthen compliance.

The Fair Work Commission dismissed a practice manager's claim of forced resignation, despite her allegations of unreasonable workload, pressure during sick leave, and retaliation after complaints, including a SafeWork NSW psychosocial hazard report. The Commission found that the employer had made documented supportive adjustments and maintained clear role communication, and reasonable contact during sick leave is not adverse action.

An Australian court made a landmark decision convicting the Department of Defence for failing to manage psychosocial risks arising from a performance management process. The department was fined A$188,000 after a worker died by suicide while on duty, highlighting the need to minimise psychosocial risks under the WHS Act.

Employers who fail to actively manage and document psychosocial risks face increased audits, investigations, and prosecution, applying to both OHS and workers' compensation. Frameworks require employers to eliminate or reduce risks before harm occurs, shifting from reactive measures to proactive work design and genuine consultation with employees.

Aggressive swearing and verbal abuse can lead to constructive dismissal, regardless of employer intent, as highlighted in a recent Fair Work Commission ruling. This decision underscores the power imbalance and emphasizes the need for employers to maintain acceptable boundaries, even in traditionally blue-collar environments.

Psychosocial safety has become a central pillar of WHS strategy, and in 2026 is expected to become a defining feature of organizational performance. Regulators are scrutinizing restructuring exercises for employee psychosocial safety, issuing enforcement notices for inadequate consultation and planning.

NSW has expanded safety laws to include digital work systems, requiring businesses to manage risks from AI, automation, and algorithms to prevent psychosocial and surveillance issues. This includes performing psychosocial risk reviews and ensuring human oversight.

The NSW Parliament passed the Work Health and Safety Amendment (Digital Work Systems) Bill 2025 (NSW) on February 12, 2026, making NSW the first state in Australia to regulate digital work systems in WHS laws. The bill introduces a primary duty of care to ensure workers' health and safety is not put at risk by digital work systems, which are defined as algorithms, artificial intelligence, automation, or online platforms.

The Australian Institute of Health and Safety (AIHS) has raised concerns over new digital safety laws in NSW.