Understanding Victoria’s New Psychological Health Regulations: Building Mentally Safe Workplaces

What Are Psychosocial Hazards?

Psychosocial hazards are elements of work design, management, or environment that can cause harm to an employee’s mental health or wellbeing. They can arise from:

• the way work is structured or managed
• the systems or pace of work
• interpersonal or organisational culture

Examples of psychosocial hazards include:

• High job demands or unrealistic workloads
• Low job control or unclear expectations
• Bullying, aggression, or workplace conflict
• Exposure to traumatic material or events
• Sexual harassment or gendered violence
• Poor communication or lack of managerial support

While these issues can seem intangible compared to physical risks, their impact is just as real. Left unaddressed, they can contribute to anxiety, depression, burnout, and long-term psychological injury.

Why These Regulations Matter

Under Victoria’s Occupational Health and Safety Act 2004, employers already have a duty to provide a workplace that is “safe and without risks to health.” The key change now is the explicit recognition that “health” includes psychological health — and that employers must take proactive steps to manage and reduce psychosocial risks.

This means mental health at work is no longer a “nice to have” — it’s a legal obligation.

By introducing these regulations, WorkSafe Victoria aims to ensure psychological wellbeing is taken as seriously as physical safety. Employers must identify, assess, and control risks related to psychological harm in the same structured way they already do for physical hazards.

The Four Key Steps to Managing Psychosocial Risk

1. Identify the Hazards
   Begin by recognising potential stressors in the workplace. Are workloads too high? Are staff supported during change? Are there unresolved interpersonal tensions or unclear roles?
2. Assess the Risks
   Determine how likely it is that each hazard could cause harm, and who might be affected. For example, prolonged exposure to high job demands can increase the risk of burnout or fatigue-related errors.
3. Control the Risks
   Take reasonable steps to remove or reduce the risk. This may include changing workloads, improving communication systems, redesigning roles, or providing additional training and support.
4. Review and Revise
   Risk management isn’t a one-off process. Employers must regularly review controls to ensure they remain effective, especially during times of organisational change or increased pressure.

What Employers Must Do

The new regulations require employers to:

• Consult with employees (and health and safety representatives) on psychological health matters that directly affect them
• Implement practical changes to eliminate or reduce risks, where reasonably practicable
• Use education and training as supporting measures — not as the sole solution
• Review and improve risk control strategies regularly

If it’s not possible to eliminate a hazard entirely, employers must use a combination of measures to minimise harm — such as adjusting workloads, improving supervision, or redesigning the workspace to reduce stressors.

Building a Mentally Healthy Workplace

Beyond compliance, these regulations offer an opportunity to build a workplace culture that values and protects psychological safety. Mentally healthy workplaces often report:

• Reduced absenteeism and staff turnover
• Higher morale and engagement
• Stronger collaboration and trust among teams
• Improved productivity and innovation

At ACT Curious, we work with organisations to help translate these obligations into real-world action. Through training, leadership coaching, and our Employee Assistance Program (EAP), we help employers and teams build awareness, manage psychosocial risks, and strengthen resilience.

Moving Forward

The introduction of Victoria’s Psychological Health Regulations reflects a broader understanding of what “health and safety” really means in the modern workplace. Protecting mental health is not just about preventing injury — it’s about fostering environments where people feel safe, supported, and able to perform at their best.

By acting early — assessing risks, consulting with employees, and promoting open dialogue — organisations can ensure compliance while also creating more engaged, sustainable, and compassionate workplaces.

Conclusion

From December 2025, psychological health will hold equal footing with physical health in workplace safety. By embedding these principles into everyday practice, employers can move beyond compliance and towards genuine care.

Because when people feel mentally safe at work, everyone benefits — teams communicate better, perform better, and thrive together.

For more information or guidance on how to prepare your organisation for the new Psychological Health Regulations, contact ACT Curious EAP for tailored support, training, and wellbeing consultation.