Workcover Update: Upcoming Psychological Health Regulations Explained

Important updates to the psychological health regulations, effective 1 December 2025, have recently been released.

In this article, our Workcover lawyers provide a brief overview of the upcoming changes in work health and safety.

Initially announced by the Allan Labour Government on 1 October 2025, the new Occupational Health and Safety Regulations (Psychological Health) 2025 focuses on the importance of identifying and managing psychosocial hazards in the workplace. These psychosocial hazards are recognised as equally important as physical hazards.1

While the current regulations require employers to provide and maintain a working environment that is safe and without risks to health, the new regulations are being introduced to clarify and strengthen employers’ obligations to manage psychosocial hazards in the workplace, thereby encouraging a more open dialogue around mental health and wellbeing.

Some of these psychosocial hazards include:

• bullying;
• sexual harassment;
• aggression or violence;
• exposure to traumatic events or content;
• high job demands;
• low job control;
• poor support; and
• any other aspect of work design, systems, management, tasks, or interaction in the workplace that may cause harmful psychological responses, posing a risk to an employee’s health and safety.2

Additionally, four key steps have been identified in the risk management process, which are as follows:

1. Identify hazards;
2. Assessing risks;
3. Control risks; and
4. Review and revise risk controls.3

To comply with the new regulations, employers will need to develop a deeper understanding of psychosocial hazards, the potential negative psychological responses workers may experience (e.g. stress), and the resulting consequences such as depression and anxiety.

WorkSafe Victoria has helpfully released guidance on the warning signs employers should be aware of, which may indicate that an employee being at risk of harm. Some examples include:

• Cognitive – negative thinking patterns;
• Emotional – feelings of dread, feeling anxious;
• Behavioural – withdrawal, changes in performance; and
• Physical – increased sickness.4

While it is a positive step to recognise psychosocial factors as equally important as physical ones, and to remove ambiguity around employers’ responsibility for psychological wellbeing, it will take time to see whether this will lead to a reduction in workplace mental injury claims.

What is important, however, is that these changes may meaningfully foster more open conversation about mental health and wellbeing, reduce stigma, and encourage workers to feel more comfortable and confident in expressing when their mental health may be negatively impacted.

For additional information, please refer to this link to view WorkSafe Victoria’s official webpage and video resources.

To discuss your situation or understand how these changes may affect you, contact one of our workers compensation lawyers on 03 9070 9816.

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1 Jacinta Allan, Premier of Victoria, Protecting The Mental Health of Workers In Victoria (Media Release, Victorian Government, 1 October 2025) https://www.premier.vic.gov.au/protecting-mental-health-workers-victoria

2 Occupational Health and Safety (Psychological Health) Regulations (2025) (Vic) reg 4

3 WorkSafe Victoria, Psychological Health Regulations: Information Sheet (Information Sheet, WorkSafe Victoria, 30 September 2025) (https://content-v2.api.worksafe.vic.gov.au/sites/default/files/2025-09/Information-sheet-psychological-health-regulations-2025-09.pdf)

4 WorkSafe Victoria, Compliance code: Psychological Health (Compliance Code, WorkSafe Victoria, 2025) https://www.worksafe.vic.gov.au/compliance-code-psychological-health-part-2-understanding-psychosocial-hazards