Victoria's new Psychosocial Regulations: key changes and what employers need to know

Since 2021, Victoria has proposed to introduce an amendment to the OHS Regulations specifically focusing on psychological health in the workplace. In 2022, the Victorian Government released an exposure draft of these regulations, the Occupational Health and Safety Amendment (Psychological Health) Regulations.

These regulations will supplement the existing OHS Act and its Regulations, placing stronger responsibilities on employers to identify, manage, and reduce mental health risks in the workplace.

On 21 February 2025, the Victorian Government announced plans to finalise and implement these regulations. The regulations are set to be made in October 2025, with implementation beginning on 1 December 2025. The changes will be supported by a new Compliance Code to provide employers with practical guidance on meeting their obligations.

The Government's announcement did not confirm whether the regulations would be in the same form as the exposure draft circulated in 2022, however we presume they will be in a substantially similar form.

What are psychosocial hazards?

In the exposure draft of the new regulations, psychosocial hazards are defined as:

1. the work design; or
2. the systems of work; or
3. the management of work; or
4. the carrying out of the work; or
5. personal or work-related interactions;

that may arise in the working environment and may cause an employee to experience one or more negative psychological responses that create a risk to their health and safety.

Examples of psychosocial hazards include bullying, sexual harassment, aggression or violence, exposure to traumatic events or content, high job demands, low job demands, low job control, poor support, poor organisational justice, low role clarity, poor environmental conditions, remote or isolated work, poor organisational change management, low recognition and reward, poor workplace relationships.

Work design means the equipment, content and organisation of an employee's work tasks, activities, relationships and responsibilities within a job or role.

Psychological response includes cognitive, emotional and behavioural responses and the physiological processes associated with them.

Current duties under the OHS Act

Victorian employers are already required to ensure the health and safety of employees, which includes psychological health. The OHS Act requires employers to provide and maintain a working environment that is, so far as is reasonably practicable, safe and without risks to health, including by identifying and managing psychosocial hazards.

However, in Victoria there is very little guidance on how this duty are to be met. This gap has been highlighted in several inquiries, such as the Boland Review (2018), the Royal Commission Inquiry into Mental Health (2020) and the Productivity Commission Inquiry into Mental Health (2020).

What will change for employers operating in Victoria

The new regulations will impose specific obligations on employers in respect of managing psychosocial risks in the workplace. It is expected that employers will be required to take the following steps (at a minimum) to minimise the risk of prosecution under the OHS Act:

• Identifying psychosocial hazards: Employers will have a positive duty to proactively identify psychosocial risks within the workplace, including by predicting the likelihood of those risks arising.
• Risk control measures: Employers must eliminate or reduce these risks wherever possible and review risk control measures at specified intervals.
• Developing prevention plans: Employers will be required to create written prevention plans addressing specific psychosocial hazards (which are expected to including bullying, sexual harassment, psychiatric harm associated with exposure to occupational violence, aggression and traumatic content/events, and high job demands).
• Reporting requirements: Employers (who have a threshold number of employees) will be required to periodically report to WorkSafe Victoria on the number of complaints received in relation in relation to bullying, sexual harassment, and occupational violence and aggression. The required information will likely include the type of psychosocial hazard, the gender of the persons involved in the complaint, and a description of the workplace relationship between the persons involved in the complaint.

These changes will align Victoria’s regulations with the model Work Health and Safety (WHS) laws in other Australian jurisdictions, though Victoria’s approach will be more comprehensive.

Comparison to other Australian jurisdictions

Victoria is the last Australian jurisdiction to introduce specific regulations regarding the management of psychosocial hazards.

Victoria’s new regulations are expected to be more detailed and prescriptive, offering a clearer framework for managing mental health risks in the workplace (see more information about the model WHS Code of Practice for managing psychosocial hazards at work, as applicable to other States and Territories here).

Therefore, it is crucial for organisations operating in Victoria and across Australia to fully understand their obligations under the new and existing regulations.

Legal risks of non-compliance

The introduction of new reporting requirements will provide a mechanism for WorkSafe Victoria to benchmark employers against one another, and may prompt inquiries or investigations of a particular workplace where high incidences of complaints or incidents are reported.

If non-compliance with the upcoming regulations is established, employers (and relevant individuals) may be exposed to significant criminal penalties.

With the introduction of more stringent duties under the new regulations, penalties for non-compliance are likely to become more frequent, and more severe.

How employers can prepare for the new regulations

Employers should take a proactive, risk-based approach to managing psychosocial hazards within the workplace.

Compliance with the new regulations may take many forms, but we recommend that employers prioritise the following:

• Review current practices: assess current practices to ensure they align with the forthcoming regulations and Compliance Code (once published), including identifying key activities that present additional risks including isolated working, apprentices, major change and performance and disciplinary processes;
• Risk assessment: develop processes to identify early signs of mental health issues, such as through the use of surveys and tools to gather information from the workforce +and reviewing existing data (e.g. retention data) to identify risk areas within the organisation;
• Update policies: ensure all OHS-related policies are up to date and consistent with the new regulations and the Compliance Code and include a psychosocial risk management framework;
• Ensure mechanism to capture data: review workplace systems for capturing data on all complaints received that involve bullying, sexual harassment, and occupational violence and aggression;
• Train staff: provide training to HR and management to raise awareness of new obligations, and to all staff to ensure that all employees understand the importance of psychosocial health in the workplace; and
• Readiness for October 2025: Employers should diarise a further review of all relevant systems and processes for compliance with the new regulations, once they are released in October this year.

Conclusion: building mentally healthy workplaces

Whilst it will never be possible to eliminate the risk of psychosocial harm to individuals within the workplace, Victoria’s new psychosocial regulations represent a significant shift towards prioritising mental health in the workplace. Employers must prepare for a more robust framework to identify, assess, and manage psychosocial hazards. By taking proactive steps now, organisations can reduce the risk of non-compliance and foster a mentally healthy workplace for all employees.