What Are Psychological Injuries At Work?

‍What Are Psychological Injuries?

Psychological injuries are mental health conditions caused or worsened by work. These can include stress, anxiety, depression, post-traumatic stress disorder (PTSD), and emotional burnout.

Unlike physical injuries, psychological injuries may not be visible but can be just as debilitating—affecting a person’s ability to concentrate, sleep, interact with others, or carry out daily work tasks.

Common warning signs include:

• Persistent low mood or irritability
• Trouble sleeping or fatigue
• Panic attacks or heightened anxiety
• Loss of motivation or withdrawal from others
• Feeling overwhelmed, hopeless, or emotionally numb

Early intervention is key—both for recovery and for making a valid WorkCover claim if the injury is work-related.

Common Causes of Psychological Injuries at Work

• Bullying or harassment
• Excessive workload or pressure
• Poor leadership or lack of support
• Exposure to trauma (e.g. first responders, healthcare)
• Job insecurity or toxic workplace culture

Legal Rights and Protections in Australia

In Australia, employers aren’t just responsible for physical safety—they also have a legal duty to protect your mental health at work.

Under Work Health and Safety (WHS) laws, businesses must identify and manage psychological risks. That includes things like stress, bullying, or unsafe workloads.

You’re also protected by national bodies like Safe Work Australia and the Fair Work Commission, which offer guidance and support if your mental wellbeing is being affected on the job.

Can You Claim Workers’ Compensation?

You can sometimes claim workers’ comp (WorkCover) for mental health issues caused by work — like bullying, harassment, or exposure to trauma.

What’s usually covered:

• Workplace bullying or harassment
• Exposure to traumatic incidents
• Unsafe workloads that clearly affect mental health

What’s usually not covered:

• Performance reviews
• Disciplinary action
• General stress from reasonable management decisions

If the claim is accepted, you may get time off paid, plus treatment costs covered. But it depends on the situation — and not every claim is approved.

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How Employers Can Prevent Psychological Harm

Creating a mentally healthy workplace isn’t just about reacting when things go wrong — it’s about building a culture that protects people from harm in the first place.

Build a Mentally Safe Workplace

Start with open communication, respectful leadership, and realistic workloads. Clear job expectations and fair treatment go a long way in reducing stress and uncertainty.

Focus on Early Intervention

Managers should be trained to spot the early signs of burnout, conflict, or distress — and know how to respond. Checking in regularly, not just when things escalate, helps catch problems early.

Offer Ongoing Support

Having an Employee Assistance Program (EAP) available shows staff there’s support when they need it. But beyond that, encourage people to use it, promote mental health days, and make wellbeing part of everyday conversations — not just a once-a-year initiative.

Preventing psychological harm isn’t one big action — it’s a mix of small, consistent steps that create a safe and supportive place to work.

*Disclaimer: This guide is for general information only and does not constitute legal advice. For advice specific to your situation, please consult a qualified legal professional.

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Related:

• EAP For Construction Businesses
• How Much Do EAPs Cost?
• EAP Counselling
• How To Respond To A Critical Incident

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