Victoria – Psychosocial Hazard Legislation is Here

‍The Importance of Complying with New Victorian Psychosocial Hazard Legislation

Workplace mental health has become a growing concern in Australia, with Federal Legislation introduced in 2023 and other states and territories following suit. After what seems like an eternity of industry engagement and reviews, Victoria is finally taking steps to protect employees from psychosocial hazards. The new regulations are set to take effect from December 1, 2025, which means Victorian businesses must take proactive measures to comply. This legislation aims to ensure that workplaces address risks such as bullying, harassment, and workplace stress, creating safer environments for all employees.

Why Compliance Matters

Failing to manage psychosocial hazards not only harms employees but also affects businesses through increased absenteeism, increased turnover, and potential legal consequences. Mental injury claims have been on the rise, and this legislation aims to curb that trend by holding businesses accountable for maintaining mentally healthy workplaces.

What Businesses Need to Do

To comply with the new regulations, businesses should:

1. Identify and Manage Psychosocial Risks – Ensure employees have a clear path to reporting incidents, including anonymous reporting. Engage with your staff via surveys or other forms of consultation to ensure that you have correctly identified all risks across the business. Conduct risk assessments to determine potential hazards in the workplace, such as high workloads, poor workplace culture, or exposure to traumatic events.
2. Implement Preventative Measures – Develop and implement controls and strategies to mitigate risks, such as training programs, reporting systems, and clear policies on workplace behaviour.
3. Provide Employee Support – Ensure employees have access to mental health resources, such as Employee Assistance Programs (EAPs) or counselling services.
4. Monitor and Review – Regularly evaluate workplace mental health policies and make adjustments as necessary to maintain compliance. We have broken down the best practice 4 step process HERE.

The Benefits of Compliance

By following these regulations, businesses will not only meet legal requirements but also experience tangible benefits:

• Enhanced Employee Wellbeing – A mentally healthy workplace leads to higher morale, job satisfaction, and retention rates.
• Increased Productivity – Reducing stress and burnout results in improved efficiency and performance.
• Stronger Reputation – Companies that prioritise employee well-being are seen as employers of choice and more desirable workplaces.
• Legal Protection – Compliance helps mitigate risks of fines, compensation clams, lawsuits, and reputational damage.

Preparing for the Changes

With ample time before the 2025 enforcement date, businesses should start taking steps now to integrate psychosocial risk management into their workplace health and safety strategies. It is never too late to start, and we made you a guide to getting started with managing these changes below.

Final Thoughts

Victoria’s new psychosocial hazard legislation is a necessary step toward improving workplace mental health. By proactively addressing risks and fostering a positive work culture, businesses can create safer, more productive environments for their employees. Now is the time for Victorian companies to act, ensuring they are fully prepared to meet the new requirements and support their workforce’s wellbeing.

For further details on the legislation, visit Premier of Victoria.

ABOUT THE AUTHOR

Louise is the Clinical Director at Foremind, with over a decade of experience in the mental health sector, contributing to well-known Australian organizations like Beyond Blue, Lifeline, Headspace, and LivingWorks.

       Louise Thompson               Clinical Director      

Help is always available

Here are some useful resources for more help – for you and for your team:

• Lifeline – 13 11 14 and https://www.lifeline.org.au/ – offers fee, confidential, 24/7 telephone crisis support and lots of info and resources on their website
• Beyond Blue – https://www.beyondblue.org.au/ – info and support about mental health and suicide prevention
• Heads Up – https://www.headsup.org.au/ – the part of Beyond Blue that is specially developed for mental health in the workplace

This post has discussed challenging topics, which can be confronting for particular readers. If you need support, please feel free to contact Lifeline on 13 11 14 or 000 if you need immediate help to stay safe.

Find out more about how Foremind is making access to mental health mainstream for workers and supporting companies manage their Psychosocial Hazard compliance!