Psychosocial Hazards: What Victorian Employers Actually Need to Do

For years, workplace wellbeing has sat somewhere between HR initiative and nice-to-have.

Well, now that’s changed.

From 1 December 2025, Victoria introduced the Occupational Health and Safety (Psychological Health) Regulations 2025 which require employers to manage psychosocial risks in the same way they manage physical safety risks.

In other words: workplace stress isn’t just a culture issue anymore, it’s a legal obligation. But what does that actually mean for employers running real businesses?

Let’s unpack it.

First things first: What is a psychosocial hazard?

A psychosocial hazard is anything about the design, management, or culture of work that could harm someone’s psychological health.

Common examples include:

• Excessive workloads or unrealistic deadlines

• Bullying or poor behaviour

• Poor leadership or lack of support

• Exposure to traumatic material

• Sexual harassment or aggressive behaviour

Many of these already sit in HR conversations. The difference now is that they’re formally recognised as workplace safety risks under OHS law.

What Victorian employers must now do

Under the new regulations, employers must:

1. Identify psychosocial hazards

2. Eliminate or reduce risks where reasonably practicable

3. Review control measures regularly

And importantly: the regulations expect businesses to change how work is organised, not just run training.

For example:

HazardWeak ResponseBetter ResponseHigh workloadStress management trainingAdjust staffing, priorities or deadlinesWorkplace conflict“Team culture workshop”Investigate behaviour, set expectationsPoor leadershipManager training onlyClear performance expectations for leaders

Training alone isn’t considered sufficient if structural changes are possible.

What this looks like in real workplaces

The biggest mistake we see? Treating psychosocial hazards like a policy exercise. Let’s be real here - WorkSafe won’t be impressed by a document sitting on SharePoint.

Instead, think about real operational changes, such as:

• Reviewing workloads during peak periods

• Training managers to recognise early signs of burnout

• Documenting how complaints and incidents are handled

• Consulting staff about risks in their role

The regulations also expect consultation with employees and Health and Safety Representatives where relevant.

The practical takeaway

You don’t need a 40-page risk register. But you do need to show that your business is actively identifying and managing psychological risks.

Start with these three simple steps:

1. Identify the biggest stress points in your team

2. Look at whether the work itself needs redesign

3. Make sure managers know what “psychological safety” means in practice

Because the truth is this:

Most psychosocial risks don’t start with HR. They start with how work is organised and how people are managed.