15 September 2025

Psychosocial Safety Regulations: Update for Victorian Business Owners [2025]

New regulations on psychosocial safety are coming for Victorian businesses.

From 1 December 2025, the new Occupational Health and Safety (Psychological Health) Regulations, will legally require Victorian employers to manage psychological hazards at the same level of importance that they do physical ones. The final regulations are due to be made in October 2025. A supporting Compliance Code will also come in October.

These regulations are a way to manage risk around psychological hazards and their impact on businesses.

 

What’s changing

Employers must identify, assess, and control psychosocial hazards and treat them on the same level as physical hazards. These new regulations will focus on managing risk, as well as on creating specific obligations for employers to identify and control psychosocial hazards in the workplace.

A compliance code supporting the regulations will be made available once the regulations are finalised. The code will give employers guidance on how to meet their duties under the new regulations.

 

Why are these regulations important?

Mental injury claims are already costing employers about $55,000 per claim, with workers taking 30 weeks off work on average (Safe Work Australia).

Real-life cases:

  • In October 2023, Court Services Victoria was fined almost $380,000 for a toxic workplace culture that contributed to one worker’s suicide. The charge against them was for failing to provide and maintain a safe workplace. Complaints by workers included allegations of bullying, favouritism, and cronyism, among others.
  • In June 2025, an employer was found guilty of failing to provide or maintain a workplace that was safe for its employees. The investigation found that the employer had “no formal systems in place to reduce, manage, or address inappropriate workplace behaviour.”

What are psychosocial hazards?

Psychosocial hazards are aspects of work that can negatively impact an employee’s mental health.

The Model Code of Practice: Managing psychosocial hazards at work by Safe Work Australia has grouped the most common workplace stressors into hazard categories, namely:

  • High/low job demands
  • Low job control
  • Poor support
  • Lack of role clarity
  • Poor organisational change management
  • Inadequate reward and recognition
  • Poor organisational justice
  • Traumatic events or material
  • Remote or isolated work
  • Poor physical environment
  • Violence and aggression
  • Harassment (including sexual harassment)
  • Conflict or poor workplace relationships and interactions

5 things businesses should do to get ready before the regulations are introduced

In light of these regulations being introduced, we recommend that Victorian employers and business owners do the following to stay ahead of the curve:

  1. Start with a risk assessment. Have a consultation with your team members and your HR department. Map psychosocial hazards in your workplace and rate each for likelihood and consequence.
    Need a risk assessment template or guidance in how to conduct one in your business? Contact our team to see how we can support you.
  2. Put baseline controls in place. We recommend doing the following to mitigate your risk:
    -Update respectful behaviour and sexual harassment policies (and any relevant policies)
    -Set up reporting channels (and have options for anonymous submissions)
    -Have defined triage timeframes for every complaint or incident
    -Educate and train managers and team members so they can spot hazards and report or respond correctly
  3. Use existing guidance while Victoria’s Compliance Code is being finalised. NSW and QLD Codes of Practice (plus Safe Work Australia’s model Code) already set a practical benchmark. Treat them as guidelines in the meantime.
  4. Review controls often, especially after change or incidents. Revisit your risk register after complaints, restructures, spikes in workload or traumatic events.
  5. Document everything. Keep evidence of risk assessments you’ve done, any consultation notes taken, training records, policy reviews, etc. Don’t think of it as merely ticking a box for compliance. It’s also a way to mitigate risk in the event of an incident or a complaint being made against your business.

 

Beyond compliance: promoting psychosocially safe workplaces

While regulations won’t apply until 1 December 2025, Victorian businesses can be proactive and take steps towards a psychologically safe workplace. Employers who act now and are proactive aren’t just complying with the law. They’re creating safer, more engaged workplaces.

Not sure where to start? Our team can help you act now (actually) and get your policies in place ahead of the regulations, all tailored for your business and your people. Book a discovery call to get the ball rolling!

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