Psychosocial risk is not an HR problem.
It is a personal legal obligation for every director.
Under the WHS Act, officers of a PCBU have a personal duty to exercise due diligence on psychosocial risk. Failure is not a corporate liability — it is individual criminal liability. Here is what that obligation requires in practice.
What the law actually says
The WHS Act s.19 places a primary duty of care on PCBUs to ensure psychological health and safety of workers. Under s.27, officers of a PCBU have a personal dutyto exercise due diligence — they must:
- Acquire and keep up-to-date knowledge of WHS matters
- Understand the nature of the operations and associated hazards
- Ensure the PCBU has appropriate resources and processes
- Ensure the PCBU has processes for receiving and responding to information
- Verify that those processes are actually being used
This is not satisfied by delegating to HR. Directors who cannot demonstrate active oversight are personally exposed.
Personal Liability Warning
Officers can be prosecuted individually under WHS legislation.
A corporate penalty does not discharge an officer's personal obligation.
Waiting for an incident before acting does not satisfy due diligence — the obligation is proactive and ongoing.
What a regulator expects to see
When WHSQ, SafeWork NSW, or another regulator investigates a psychosocial incident, they look for specific evidence traits.
Systematic Identification
Evidence that hazards were identified systematically—not just when a complaint arose.
Documented Assessment
Formal records of risk assessment with documented evidence, not just informal talk.
Traceable Controls
Controls implemented with a traceable record of dates, owners, and outcomes.
Genuine Consultation
Proof that workers were consulted at every stage, satisfying the s.47 obligation.
Defined Review Cycles
Evidence of reviewing control effectiveness on a regular, pre-defined cycle.
Mandatory Plans
Prevention plans in place for harassment and bullying hazards (QLD mandatory).
Most boards are flying blind
The Australian Institute of Company Directors (2024) found that boards must designate committee oversight of psychosocial risk.
Most boards receive no structured reporting. They see WC claims after the fact. They do not see:
Without this, a director cannot demonstrate they were actively monitoring psychosocial risk — which is exactly what due diligence requires.
Leading vs Lagging Metrics
Annual Survey Results / EAP Usage Rate
Live Consultation Gaps / Overdue Hazard Reviews
"PsychProof is designed to produce exactly this evidence trail — structured for board consumption, not just manager documentation."
AICD 2024 Guidance Checklist
Five essential elements of defensible board oversight of psychological safety.
Psychosocial hazards integrated into WHS risk register reviewed by the board
Senior executive assigned personal responsibility for psychosocial safety
Regular board reporting on consultation records and control implementation status
Independent audit conducted within 12 months — not self-assessed
Prevention plans in place and attested for harassment and bullying hazards