The PsychProof Newsroom

From 1 July 2026, NSW PCBUs must comply with approved Codes of Practice — including the Managing Psychosocial Hazards at Work Code — or prove they meet an equivalent or higher standard.

The Industrial Relations and Other Legislation Amendment (Workplace Protections) Act 2025 (NSW) allows unions to commence civil penalty proceedings under the Work Health and Safety Act 2011 (NSW) from 1 March 2026, increasing the chances of litigation related to psychosocial hazards where systems don't clearly show risk identification, assessment, and control. Employers must have a justifiable, systematic strategy, conduct official psychosocial hazard risk assessments, and develop practical control measures.

The Fair Work Commission ruled it unfair when a NSW warehouse worker questioned her redundancy and was fired mid-shift, ordering the employer to pay compensation. The commission found the redundancy was not genuine on three grounds.

SafeWork NSW improvement notices related to psychosocial risks during a Department of Education's disciplinary investigation were largely upheld by the Commission, emphasizing the need to manage psychosocial hazards during workplace investigations.

The NSW Government has appointed 20 psychosocial inspectors as part of a SafeWork NSW expansion, enhancing enforcement, prevention, and workplace mental health outcomes. This initiative aims to strengthen the focus on psychosocial hazards and improve mental health outcomes in NSW workplaces.

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.

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.