Psychosocial Risk Management in NSW: Practical Steps for Employers from July 2026
Psychosocial risk management is now a key workplace compliance issue for NSW employers.
From 1 July 2026, the NSW Codes of Practice have become a stronger reference point for how businesses are expected to manage workplace risks, including risks to psychological health. In practical terms, employers should be able to show that they have considered psychosocial hazards in their workplace, spoken with workers where appropriate, taken reasonable steps to manage the risks, and kept a record of their actions. This does not need to be complicated, but it does need to be treated as part of normal workplace health and safety compliance.
What are psychosocial hazards?
Psychosocial hazards are aspects of work that may cause a stress response and lead to psychological or physical harm. They can arise from the way work is designed, managed, supported or carried out, as well as from workplace interactions and behaviours.
Common examples include:
High job demands
Poor support
Conflict or poor workplace relationships
Bullying and harassment
Poor communication
Exposure to traumatic events
Remote or isolated work
Fatigue
Poorly managed change
These issues can affect productivity, morale, absenteeism, turnover, workplace conflict, injury risk and workers' compensation claims.
Why this matters for Employers
For most small and medium businesses, psychosocial risk management is not about creating a complicated system. It is about being able to show that the business has considered the risks, spoken with workers where appropriate, taken practical steps to manage those risks, and reviewed whether those steps are working.
Practical steps employers can take
A sensible starting point is to apply a normal risk management approach.
This may include:
Implementing a psychosocial risk management policy
A policy helps set expectations around workplace behaviour, communication, support, reporting and how concerns will be managed.
Consulting with workers
Employers should speak with workers about psychosocial hazards and risks. This may occur through toolbox meetings, team meetings, surveys, check-ins or WHS consultation processes.
Running short employee check-in surveys
A simple survey can help identify issues such as workload, support, communication, conflict, role clarity or workplace change concerns.
Documenting risks and actions taken
Employers should keep records of issues raised, steps taken, controls implemented and follow-up action.
Reviewing workload, communication and support
Psychosocial risks often arise from work design, unclear expectations, poor communication, limited support or unmanaged workplace behaviour.
Considering support options
This may include an Employee Assistance Program, manager training, external workplace support or relevant NSW programs where suitable.
Updating workplace documentation
Employment handbooks, WHS frameworks, workplace policies, consultation processes and incident reporting procedures should reflect psychosocial risk obligations.
How Hendy HR can help
Hendy HR Consulting can assist employers with:
Psychosocial risk management policies
Toolbox meeting resources
Short employee check-in surveys
Handbook and WHS framework updates
Practical HR and WHS documentation
Broader workplace compliance support
For small and medium businesses, the key is to start with clear, practical steps that can be implemented and documented.
This article provides general information only and should not be treated as legal advice. Employers should obtain advice specific to their workplace, industry and circumstances.
