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Psychosocial Hazards at Work: Employee Rights

Reading time: 5 mins

In 2025, employers across Australia face growing scrutiny over how they manage psychosocial hazards in the workplace. These risks ( like bullying, gossip, overwork, or exclusion) may seem “soft” issues, but under Australian law, they now trigger hard legal consequences.

With expanded duties under the Work Health and Safety Act 2011 (WHS Act) and greater awareness of mental health at work, it’s critical for every employer to understand their legal obligations. Our employment law team explores what psychosocial hazards are, what your duties involve, and how to avoid legal claims.

Key Takeaways

  • Psychosocial hazards include bullying, harassment, toxic culture, high workloads, and lack of support.

  • You have a legal right to a safe work environment – both physically and mentally.

  • You can take action by reporting the issue, accessing support, or seeking legal advice.

  • Employers must manage mental health risks under Australian Work Health and Safety laws.

  • Documentation and early reporting are crucial if you feel unsafe or unwell at work.

Farrah Motley is an Australian Legal Practitioner and the Director of Prosper Law

What Are Psychosocial Hazards in the Workplace?

Psychosocial hazards are aspects of your job that may cause psychological harm. Common examples include:

  • Bullying or verbal abuse

  • Chronic overwork or under-resourcing

  • Unclear expectations or role conflict

  • Lack of support or recognition

  • Discrimination, harassment, or exclusion

  • Repeated exposure to distressing situations

Unchecked, these hazards can lead to stress, anxiety, depression, or burnout.

What Are Your Rights as an Employee?

Under Australia’s WHS laws, your employer has a duty of care to protect your mental and emotional wellbeing at work.

As an employee, you’re entitled to:

  • A mentally safe and respectful workplace

  • Reasonable workloads and support

  • Clear job roles and expectations

  • The ability to report risks or concerns without fear

  • Access to complaint and grievance mechanisms

To understand how your employer is legally required to manage these risks, read our guide for businesses on psychosocial hazards in the workplace.

Signs You May Be Experiencing a Psychosocial Hazard

Watch for these red flags:

  • Constant anxiety, stress, or dread before work

  • Regular criticism or exclusion by colleagues or managers

  • Confusion over your role, responsibilities, or deadlines

  • Working excessive unpaid hours

  • Feeling unsupported, isolated, or unsafe at work

If any of these apply, you may be experiencing a psychosocial hazard.

What You Can Do as an Employee

If you’re experiencing a psychosocial hazard at work, there are practical steps you can take to protect your wellbeing and assert your legal rights.

1. Keep Records

Document dates, conversations, emails, and incidents.

2. Use Internal Processes

Raise the issue with your manager, HR, or health and safety rep.

3. Access Support

Talk to a GP, psychologist, or use your EAP if available.

4. Reach Out Externally

You can contact a WHS regulator in your jurisdiction or a workplace lawyer for help.

5. Know Your Legal Options

If your mental health is harmed due to employer negligence, you may be entitled to:

  • Workers’ compensation for psychological injury
  • Lodging a bullying claim with the Fair Work Commission
  • A general protections or unfair dismissal claim

Remember: Thousands of Australian workers are affected by psychosocial hazards each year. Seek legal help when necessary and know that your rights are protected by law.

Matter Example: Navigating Psychosocial Risk Allegations with Legal Support

A project coordinator at a mid-sized marketing firm, began experiencing daily verbal criticism from her manager during team meetings. Despite consistently meeting deadlines, she was often singled out, excluded from planning sessions, and overloaded with work after hours.

Over time, the employee developed anxiety and began taking sick leave more frequently. She reported the issue to HR, but no action was taken.

She then documented the incidents, spoke with her GP, and filed a formal bullying complaint with the Fair Work Commission.

She was eventually awarded compensation through a psychological injury claim and received legal support to negotiate her exit on fair terms.

If after-hours emails or calls are affecting your wellbeing, learn about your right to disconnect from work under Australian law.

Allison Inskip is a Senior Paralegal and highly experienced legal professional

Frequently Asked Questions

What qualifies as a psychosocial hazard at work?

Any work factor that could impact your psychological safety or wellbeing – like bullying, high stress, or toxic management practices.

If you’re based in QLD, you may find the WorkSafe Queensland page on psychosocial hazards helpful.

Can I make a complaint if I’m just feeling stressed or anxious at work?

Yes. If stress is work-related and caused by preventable factors, your employer has a duty to act.

If you’ve been treated unfairly after raising a concern or asserting your rights at work, you may have grounds for an adverse action claim.

What if my employer ignores my complaint?

You can escalate it to your state WHS authority or seek legal advice from an employment lawyer.

Can I be fired for reporting psychosocial hazards?

No. It’s unlawful for an employer to dismiss or punish you for raising health and safety concerns.

Did you know: If you’ve felt pressured to quit your job, you might be facing a forced resignation – find out what it means and what your rights are.

Can I get workers’ compensation for mental health issues caused by work?

Maybe. If your psychological condition is clearly caused by work and verified by medical professionals, you may be eligible for compensation.

About the Author

Farrah Motley
Director of Prosper Law. Farrah founded Prosper online law firm in 2021. She wanted to create a better way of doing legal work and a better experience for customers of legal services.

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