NSW Code of Practice for psychosocial hazards becomes law from 1 July 2026

Changes to psychosocial regulations for business in NSW

• From 1 July 2026, the Code of Practice: Managing Psychosocial Hazards at Work ( ‘the Code’) stops being regulatory guidance and becomes a legally enforceable compliance benchmark, under section 26A of the Work Health and Safety Act.
• This means you must comply with the Code ( and other approved Codes) and prove that you meet or exceed it. Simply falling short of the Code may constitute a breach of the WHS Act.
• Before vs after: The Code moves from being admissible evidence and regulatory guidance to a legally enforceable standard.

As of 1 July 2026, all NSW businesses have a legal duty to comply with the Code or prove that their approach meets an equivalent or higher standard. Section 26A of the Work Health and Safety Act (WHS Act) transforms the Code from regulatory guidance to a legally enforceable standard.

It is important to note that interstate businesses with operations in NSW fall under the jurisdiction of the WHS Act 2011 (NSW), and must comply with section 26 A.

The new duty

The Code moves from being admissible evidence and regulatory guidance to a legally enforceable standard. This means that a regulator no longer needs to prove that harm occurred. Simply falling short of the Code may constitute a breach of the WHS Act.

This raises the bar on proving that you are meeting your legal obligations in relation to psychosocial safety. 

For example, policies or training alone are no longer sufficient. The Work Health and Safety Regulation 2025 now requires PCBUs to manage psychosocial hazards using high-order controls.

Now, you must meet or exceed the Code under section 26 A of the WHS Act, by demonstrating that risk has been reduced so far as reasonably practicable. This must be supported by measurable indicators, documented evidence in relation to the effectiveness of controls, with regular reviews being undertaken.

What matters is proof that your controls actually reduce risk. Fall short, and SafeWork NSW take action, including prosecuting the business, and/or fine officers personally up to roughly $133,000 - regardless of whether anyone's actually been harmed.

The Code provides a robust foundation, for the psychosocial risk management process: consult, identify, assess, control, review and monitor. Failure to produce evidence of compliance to the regulator, may be treated as both regulatory non-compliance and a breach of your statutory duty.

What the regulator is looking for

From 1 July, an Inspector will look for evidence of the following:

• Controls have been mapped to psychosocial hazards in the Code
• The hierarchy of controls has been applied, with elimination and higher-order controls being implemented as a priority ( in line with the NSW WHS Regulation 2025)
• There has been genuine and effective consultation throughout the entire risk management process
• The process of monitoring and reviewing controls have been documented 
• Higher-order controls are to be prioritised over the use of policies and training

How NSW compares to other states

NSW and Queensland are now the only Australian jurisdictions where compliance with approved WHS Codes of Practice carries this additional legal obligation. In Victoria failing to comply with approved Codes is not a breach. In all other states and territories, the Code remains admissible evidence and regulatory guidance only. However, this may change.

Key takeaways:

Psychosocial risk management is no longer a nice to have, it is a legal requirement and a governance imperative.

It is critical that businesses integrate the Code and WHS Regulations into their systems, in order to be able to demonstrate genuine due diligence and reduce the possibility of regulatory action.

You must have documented evidence that you have identified the psychosocial hazards your people actually face, consulted with your workers and implemented appropriate and effective controls.

Awareness of psychosocial hazards is simply not enough. Employers who fail to demonstrate compliance with the Code or a higher standard, face a regulatory or litigation risk.

The question for employers in NSW, is whether you will be able to prove compliance with the Code if the regulator comes knocking?

Your steps towards psychosocial compliance in NSW

1. Read, review and properly understand the Code of Practice - Managing Psychosocial Hazards at Work.
2. Provide psychosocial safety training to your leaders and workforce, in order to understand your legal obligations.
3. Obtain survey data in relation to psychosocial hazards occurring within your organisation.
4. Develop a psychosocial hazard risk register - you can download our psychosocial risk assessment template.
5. Apply the hierarchy of controls and prioritise higher-order controls. For example, altering the management of work, plant, system of work and workplace environment. Not simply just having a policy in place.
6. Ensure there is genuine and effective consultation with your people, not just a tick box exercise.
7. Proactively implement, maintain, monitor and review the effectiveness of controls and document this process. 

How Foremind can assist

We help organisations get intentional about building a mentally healthy workplace, with support systems embedded early and genuinely trusted by your people - so harm gets prevented before it escalates. Foremind is much more than an EAP: it's a compliance platform giving you early oversight and real-time data, so you can act early to prevent harm, or respond fast and properly when it does happen.

Take our Compliance Audit Checklist  to find out exactly where your gaps are. We'd love to help guide you through your psychosocial safety journey.

We offer psychosocial safety training for your workforce and leaders to be able to equip you with the knowledge and awareness to help you meet your legal obligations and go beyond. We also offer a Workforce Psychosocial Hazard Survey which will assist you pinpoint your psychosocial hazards and hotspots, within your organisation.

Foremind is an Australian-built, integrated platform helping organisations manage psychosocial hazards and deliver mental health and wellbeing support in one system.

FAQs

Does this create a brand-new legal duty?

‍No. Your duty to manage psychosocial risk already exists under the WHS Regulation. The burden of proof shifts from the regulator needing to prove harm to businesses needing to prove they have met the standards outlined within the Code.

Do we have to follow the Code exactly?‍

You must either comply with the Code or demonstrate that your alternative approach provides an equivalent or higher standard of safety, backed by evidence.

Is having an EAP enough to comply?‍

No. An EAP supports people after they've already been affected. The Code expects you to identify and control the hazard at its source, through things like work design and management of work, first.

What counts as a "higher-order control"?‍

The WHS Regulation now requires PCBUs to manage psychosocial hazards using higher-order controls from the Hierarchy of Controls. Such as workload management, role clarity, systems reviews, workplace planning, redesigning job roles, job rotation and manager support. Policies, training, and EAPs sit lower in the hierarchy and can't be your primary control.

Does this only affect psychosocial hazards?‍

No. Section 26A applies to all approved NSW Codes of Practice, more than 30 of them gain this enforceable status at once. Psychosocial hazards are simply the area attracting the most attention.

Does this apply outside NSW?‍

The 1 July change itself is NSW-specific. Queensland already gives its approved codes similar legal weight, and psychosocial regulation is tightening nationally, so businesses operating across states should treat this as a signal to prepare broadly, not just in NSW. Interstate businesses with operations in NSW fall under the jurisdiction of the WHS Act 2011 (NSW), and must comply with section 26 A.

What's happening with the People at Work (PAW) survey, and does it affect this?‍

The PAW survey was decommissioned on 1 July 2026. If you've relied on it for hazard identification, existing accounts, data and reports will stop being accessible from 2 October 2026. In which after that, the data can't be recovered. Since a survey only covers the "identify" step of the Code's process (not assess, control or review), you'll need a replacement survey or assessment process in place before your next review cycle regardless of the section 26A changes. Export any historical PAW data now, before access closes.

Disclaimer: The information contained in this article and on this website is general information only and does not constitute legal advice. Although all efforts have been made to ensure the accuracy and currency of the information presented, Foremind takes no responsibility for any errors or omissions. Please contact a qualified legal and or WHS representative for advice specific to your organisation.

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