Home/Legal Duties

    Who's Responsible for Managing Psychosocial Hazards?

    Understand the legal requirements for managing psychosocial hazards and what each person or party must do.

    Written by Christian Ratten, Workplace Psychologist

    The Simple Answer

    Under Australian Work Health and Safety (WHS) laws, multiple parties have duties to manage psychosocial hazards.

    Key principle: Everyone has a role in managing psychosocial hazards in workplace.

    1

    Primary Duty – Businesses (PCBUs)

    The primary duty holder under WHS law.

    What is a PCBU?

    A Person Conducting a Business or Undertaking (PCBU) has the primary duty under WHS law. In simple terms, a PCBU is usually:

    A companyA sole traderA partnershipAn unincorporated association

    The Primary Duty

    To ensure, so far as is reasonably practicable, the health and safety of:

    Workers while they're at work
    Workers whose activities are influenced or directed by the business
    Other persons (like visitors or contractors) who might be affected by the work

    This includes psychological health and safety.

    What this means for psychosocial hazards

    As a PCBU, you must:

    1

    Identify psychosocial hazards in your workplace

    2

    Assess the risks those hazards create

    3

    Eliminate the risks where reasonably practicable, or minimise them if elimination isn't possible

    4

    Review your control measures regularly to ensure they remain effective

    This duty applies regardless of:

    The size of your business
    Your industry or sector
    Whether you're aware of the hazards
    Whether a complaint has been made
    2

    Directors and Senior Leaders Duty of Due Diligence

    Officers of a PCBU

    If you're an officer of a PCBU (such as a director, CEO, or other senior executive), you have a separate duty under section 27 of the WHS Act.

    Your duty is to exercise due diligence to ensure the PCBU complies with its duties.

    What "due diligence" means in practice

    You must take reasonable steps to:

    1

    Acquire and keep up-to-date knowledge of work health and safety matters

    This includes understanding psychosocial hazards and how to manage them

    2

    Gain an understanding of the nature of your operations and the hazards and risks associated with them

    What psychosocial hazards exist in your workplace? How severe are they?

    3

    Ensure the PCBU has appropriate resources and processes to eliminate or minimise risks

    Are systems in place to identify and control psychosocial hazards? Do you have enough staff, budget, and expertise to manage these risks?

    4

    Ensure the PCBU has appropriate processes for receiving and considering information about incidents, hazards, and risks

    How do workers report psychosocial hazards or complaints? Are you getting that information, and are you acting on it?

    5

    Ensure the PCBU implements processes for complying with duties

    Are policies being followed? Are risk controls actually in place and working?

    6

    Verify the provision and use of resources and processes mentioned above

    Don't just assume things are working—check

    What this means practically

    Officers can't delegate this duty. You can't say "HR handles that" or "the safety manager is responsible."

    You need to:

    • Understand what psychosocial hazards are
    • Know what's happening in your workplace
    • Ensure appropriate systems and resources are in place
    • Actively verify that risks are being managed

    Consequences of failing

    Officers who fail to exercise due diligence can be personally liable—including fines and, in serious cases, imprisonment.

    3

    Workers' Duties

    Everyone at work has responsibilities.

    Workers also have duties under WHS law (section 28). As a worker, you must:

    1

    Take reasonable care for your own health and safety

    2

    Take reasonable care that your actions (or omissions) don't adversely affect the health and safety of others

    3

    Comply with any reasonable instruction given by the PCBU to allow them to comply with WHS law

    4

    Cooperate with any reasonable policy or procedure relating to health and safety

    What this means for psychosocial hazards

    Workers must:

    Follow workplace policies (such as respectful behaviour policies)

    Report psychosocial hazards when they identify them

    Participate in consultation processes

    Not engage in behaviours that create psychosocial risks for others (such as bullying or harassment)

    Use any control measures that have been put in place

    Important: Workers are not responsible for designing or implementing control measures—that's the PCBU's duty. But workers must cooperate with reasonable controls and not create risks for others.

    4

    Other Duty Holders

    Additional responsibilities under WHS law.

    Other parties may also have duties under WHS law:

    Designers, manufacturers, importers, suppliers

    If you design, manufacture, import, or supply plant, substances, or structures used at work, you have duties to ensure they're safe—including considering psychosocial risks.

    Example: Software that's poorly designed and causes frustration or excessive workload could contribute to psychosocial risk.

    Principal contractors

    On construction projects, the principal contractor has specific duties to manage health and safety risks for the entire site—including psychosocial hazards.

    Labour hire providers

    If you provide labour hire workers, you share duties with the host employer to ensure those workers' health and safety.

    Other persons at the workplace

    Anyone at a workplace must take reasonable care that their acts or omissions don't adversely affect others' health and safety.

    Example: A client or customer who behaves aggressively toward workers contributes to psychosocial risk.

    5

    Multiple Duty Holders

    When more than one party has duties.

    It's common for multiple parties to have overlapping duties—especially on sites with contractors, labour hire, or multiple businesses operating.

    The principle: Each duty holder must comply with their duties to the extent they have control over the matter.

    Example: Construction site with subcontractors

    Principal contractor

    Manages site-wide systems (e.g., rosters, communication, incident response)

    Subcontractors

    Manage hazards within their own work (e.g., workload, supervision, team culture)

    Workers

    Follow policies, report hazards, don't create risks for others

    Each party must do what they can, within their sphere of control.

    Key point

    You can't contract out of your WHS duties. Even if you engage contractors or consultants, the PCBU and officers still retain their legal duties.

    What Happens If Duties Aren't Met?

    Failing to meet WHS duties—including duties to manage psychosocial hazards—can result in:

    For PCBUs

    • Improvement notices requiring specific actions within a timeframe
    • Prohibition notices stopping work until risks are controlled
    • Fines up to $1.5 million (for Category 1 offences)
    • Prosecution in serious cases

    For Officers

    • Personal fines up to $600,000
    • Imprisonment up to 5 years (for serious breaches)
    • Personal liability even if the company is also prosecuted

    For Workers

    • Fines up to $150,000 (for serious breaches)
    • Disciplinary action by the employer

    Importantly

    Regulators across Australia are increasingly focusing on psychosocial hazards. Improvement and prohibition notices are being issued, and prosecutions are occurring.

    The standard is clear: psychosocial risks must be managed with the same rigour as physical risks.

    Free 2-Minute Assessment

    Are You Meeting Your Legal Duties?

    Most businesses have significant gaps in their approach to psychosocial hazards—and don't realise it until a complaint triggers an investigation. Find out where you stand before a regulator does.

    • Identify compliance gaps before a regulator does
    • Understand your current risk level
    • Get tailored priority actions
    • Access relevant resources for your situation
    Start Free Assessment

    No signup required • Results in 2 minutes

    ?out of 12

    Your Compliance Score

    0-3: Red Flag
    4-7: Partial Compliance
    8-10: On Track
    11-12: Strong Position
    Private & Confidential
    6 Questions
    Taking Action

    Practical Steps for Compliance

    What you should be doing

    If you're a PCBU

    1. 1

      Identify psychosocial hazards systematically (don't wait for complaints)

    2. 2

      Assess the risks they create

    3. 3

      Implement control measures using the hierarchy of controls

    4. 4

      Consult with workers throughout the process

    5. 5

      Keep records of your risk management activities

    6. 6

      Review controls regularly and when circumstances change

    If you're an officer

    1. 1

      Educate yourself on psychosocial hazards and what they mean for your business

    2. 2

      Ensure your organisation has appropriate systems and resources in place

    3. 3

      Ask questions: What psychosocial hazards exist? How are we managing them?

    4. 4

      Review reports and data on psychosocial risks regularly

    5. 5

      Verify that controls are actually being implemented and maintained

    If you're a worker

    1. 1

      Follow workplace policies and procedures

    2. 2

      Report psychosocial hazards when you identify them

    3. 3

      Participate in consultation processes

    4. 4

      Take care not to create risks for others through your behaviour

    5. 5

      Use any control measures that have been implemented

    When to Seek Advice

    Getting it right matters

    If you're unsure whether you're meeting your legal duties, or if you want to verify that your approach would withstand regulatory scrutiny, consider seeking advice.

    You might benefit from support if:

    You're unclear about what your specific duties require

    You've received a complaint or improvement notice

    You want an independent review of your systems

    You're planning changes that might affect psychosocial risks

    You need help developing or implementing control measures

    You want to chat to a workplace psychologist to get further understanding

    A confidential conversation with someone who understands psychosocial hazards can provide clarity and help you avoid costly mistakes.

    Let's chat