Psychological safety is now the law: What employers need to know
New Psychological Health Regulations formally came into effect on 1 December 2025, with most other states already having this legislation in place.
For employers, this marks a significant change as managing psychosocial risks is now a legal obligation under occupational health and safety law, not just a wellbeing initiative.
The message is clear: psychological safety must be treated with the same seriousness as physical safety.
Why this matters
The new regulations require employers to identify, assess, and control psychosocial hazards in the workplace. These hazards can arise from work design, management practices, or workplace interactions, and they often compound each other. High workloads combined with low support, for example, can significantly increase the risk of harm.
Failing to manage these risks is no longer just a cultural issue. It may expose organisations to regulatory action, significant fines, or, in serious cases, criminal penalties. Similar requirements already exist in several other states, and broader national alignment is expected.
The regulations also reinforce that policies alone are not enough. Employers must be able to demonstrate that risks are actively identified, addressed at their source where possible, and reviewed over time.
Some Examples
Workload and role clarity: If employees are consistently working excessive hours with unclear priorities, this is a psychosocial risk that must be assessed and addressed, not simply managed through resilience training.
Leadership and behaviour: If poor management practices, inconsistent decision-making, or unresolved interpersonal issues are contributing to stress or disengagement, employers are expected to take systemic action, not just respond to individual complaints.
Proactive intervention: If managers or colleagues observe signs of psychological harm, whether that’s an increase in workplace conflict, or repeated stress-related issues, there is an expectation to act early. Addressing concerns as they arise, rather than waiting for a formal complaint or incident, is a critical part of managing psychosocial risk.
These examples highlight why psychological safety needs to be embedded into how work is designed, led, and supported, rather than treated as a reactive issue.
What employers should do now
To prepare for and respond to the new regulations, employers must:
Review current policies, procedures, and practices to identify psychosocial hazards and include procedures for addressing them.
Train managers on what the hazards are and how to be proactive rather than reactive, by applying the hierarchy of controls to eliminate or reduce risks at their source.
Consult employees and health and safety representatives to understand where risks are concentrated.
Develop and document a psychosocial hazard risk assessment and prevention plan.
Review controls regularly, particularly after incidents or organisational change.
In short:
These regulations make psychological safety a core compliance and legal requirement. In addition, they also present an opportunity for businesses to strengthen their culture, build trust, and reinforce their values.