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Reducing Psychosocial Hazards, Injuries and Claims

Workplace health and safety is no longer just about physical risks—it’s also about protecting employees from psychosocial hazards. Based on national data analysed by Safe Work Australia (2021), 8% of all work-related claims are attributed to psychosocial injuries, making them one of the top four causes of work-related injuries and disease in Australia. These figures underscore the pressing need for awareness, prevention, and proactive management to protect the nation’s workforce.

What is a Psychosocial Hazard?

A psychosocial hazard refers to any aspect of the working environment that causes excessive stress, potentially leading to physical or psychological harm. Common outcomes include:

  • Anxiety, depression, or post-traumatic stress
  • Sleep disorders and fatigue
  • Musculoskeletal injuries
  • Chronic disease

Examples of Psychosocial Hazards in the Workplace

Psychosocial hazards can arise from multiple sources, including:

  • Workload & Environment Mismanagement: High job demands, lack of support, or poor recognition of employee efforts.
  • Physical Conditions: Excessive noise, dust, or poorly maintained equipment.
  • Isolation & Remote Work: Poorly designed or isolated working environments.
  • Workplace Culture & Behaviour: Bullying, harassment, discrimination, and toxic organizational culture.

How to Reduce Psychosocial Hazards and Injuries

Safe Work Australia identifies several strategies to reduce risks and claims:

  • Task & Role Alignment: Match employee capacity with job demands to prevent overload.
  • Clear Processes & Systems: Ensure organisational structures are transparent and easy to navigate.
  • Safe Work Environments: Improve design, layout, and maintenance of facilities.
  • Positive Team Relationships: Encourage supportive leadership and healthy workplace interactions.
  • Regular Training & Awareness: Provide ongoing education about psychosocial hazards and employee responsibilities.

Why Employers Must Act

Some industries naturally face higher psychosocial risks due to the nature of their work. However, ignoring these hazards can lead to severe consequences—both cultural and financial.

For example, in August 2020, a case demonstrated the cost of neglect. An employee successfully claimed compensation after unfair dismissal led to psychosocial injury. The court found the employer breached its duty of care, awarding the employee $1,733,119 in damages and economic loss. This case underscores the importance of fair treatment, sensitivity, and adherence to workplace processes.

Building a Safer Workplace Culture

Employers must prioritize reducing psychosocial hazards to protect employees, strengthen organizational culture, and avoid costly claims. By fostering supportive environments, offering training, and ensuring fair processes, businesses can significantly lower risks.

At Assurance HR Management, we partner with businesses across Tasmania to provide:

  • WHS and HR Reviews
  • Training Programs
  • Compensation Claim Support
  • Conflict Resolution Services

📞 Contact us today at 1800 577 515 to discuss your workplace needs and protect your team from psychosocial hazards.

References

  • Elisha v Vision Australia Ltd [2022] VSC 754 (13 December 2022)AustLII
  • Safe Work Australia (2021). Key Work Health and Safety Statistics Australia 2020–21Safe Work Australia Report