Simplifying WorkSafe’s Latest Psychosocial Risk Guidelines

Did you know WorkSafe released its Managing Psychosocial Risks at Work Guidelines in June 2025?

The launch was pretty low-key, but the implications are serious. Every business, no matter how small or what industry, has

a legal obligation to manage psychosocial risks at work.

And now there’s no excuse – the new guidelines from WorkSafe provide clear advice for businesses on managing psychosocial risks at work.

But what do they actually mean in practice? Let’s break it down in plain language.

What are psychosocial risks?

Good question – this is a technical term likely to make most people’s eyes glaze over!

• Psychosocial = refers to how a person’s thoughts, emotions and behaviours interact with their social environment (in this case the workplace).

• Psychosocial hazards = the factors at work that may cause psychological (mental) and physical harm.

• Psychosocial risk = refers to the likelihood that a psychosocial hazard will cause harm.

• Cause of psychosocial hazards = how work is designed, social factors at work and/or the work environment.

• Impact of psychosocial hazards = can lead to serious physical and mental health impacts such as anxiety, depression, fatigue, burnout, cardiovascular disease, musculoskeletal disorders, fatigue-related accidents, and even chronic illness. It can also cause social harms such as substance abuse and conflict between work and family life.

Examples of psychosocial hazards

• Work Design: unmanageable workloads, unclear roles, unrealistic deadlines.

• Social Factors: bullying, harassment, poor leadership, lack of support.

• Work Environment: unsafe or isolated work environments, exposure to traumatic events.

“Psychosocial risks” sounds technical — instead I describe them as "the work-related factors that can negatively impact an employee’s health and wellbeing — physically and mentally".

Or think of them as the “invisible hazards” of work.  Just like a slippery floor can cause physical harm, poor leadership, culture, work design, and excessive demands can cause both psychological (mental) and physical harm.

While many factors influence how these hazards can affect people, the Health and Safety at Work Act (HSWA) requires all businesses to identify and manage the both the physical and psychological risks that come from work.

👉 Key takeaway: psychosocial risks don’t just show up as “stress” or “mental health challenges.” Chronic workplace stress can lead to heart disease, stroke, diabetes, autoimmune conditions, musculoskeletal injuries, fatigue-related accidents, and even the common cold.

Why should you care?

Because it’s the law.

Under the HSWA, businesses (PCBUs) must ensure work does not harm people — physically or mentally. This isn’t new. We’re a decade on from this being included in the HSWA, but many businesses still aren’t treating mental harm seriously or think it’s “soft.”

And ignoring psychosocial risks isn’t just risky for your people — it’s risky for your business too. When people are stressed, fatigued or injured they are unable to perform and be productive which in turn impacts the bottom line.

Here’s the reality:

• Harm is whole-body – excessive work demands affect brain, heart, muscles, and immune system.

• It’s not just office jobs – physically demanding roles (construction, tourism, hospitality etc) are at highest risk for wear and tear.

• Stress reduces safety – fatigue and chronic stress undermine focus, decision-making, and adherence to safety protocols.

• Ignoring it is a legal and leadership failure – you have a duty to protect your people.

Here's some examples:

• A construction worker doing 10-hour shifts under heavy load and deadline pressure risks chronic stress, fatigue, and accidents.

• A café manager juggling staff shortages, peak hours, and customer demands may be silently heading toward burnout or health issues.

• An office administrator with clear boundaries and support may work long days without the same level of impact — showing how work design and culture really matter.

👉 Key takeaway: psychosocial risks aren’t just solved with mental health days or EAP — they’re reduced or eliminated through how work is designed and considering how work impacts both physical and mental health.

What do the guidelines say? 

The good news is the guidelines are practical and clear. Here’s what they emphasise:

✅ Identify psychosocial risks - with input from employees

✅ Assess and prioritise - like you would physical hazards

✅ Put controls in place - policies, processes, support systems

✅ Monitor and review - are your controls are working?

✅ Support recovery and return to work - what's the guidance and process for this?

These guidelines are your roadmap for treating psychosocial hazards like the serious health and safety issue they are.

👉 Key takeaway: the responsibility sits with business owners and leaders to act.

Responding when harm occurs

Even with good systems, let's be real harm will still happen. Have a clear plan:

• Respond quickly and fairly to reports of harm

• Support recovery and return to work

• Escalate serious cases when needed — WorkSafe can step in if risks aren’t being managed

• Ensure your team know what support is available — EAP services, HR support, flexible rostering, wellbeing check-ins

• Unsure what to do? Reach out to experts who do (like me 😉).

The bottom line

Psychosocial risks are not reduced or eliminated with “nice-to-have” wellbeing initiatives. They’re real workplace hazards with legal obligations that require strategic thinking and system-level solutions.

They’re not just about mental health either — they’re about physical and mental health and safety. Chronic stress from excessive demands, poor leadership, or unsafe environments can break down the body just as much as the mind.

Businesses have made huge strides in physical safety. Now it’s time to lift psychological and mental safety to the same standard.

Harm is harm. Mental and physical injuries both deserve urgent prevention and care.

What can you do right now?

Start small, start practical. Here are some first steps:

• Talk with your people – Ask what’s stressful, overwhelming, or impacting their health and wellbeing.

• Look at work design – Are workloads fair? Are roles clear? Are deadlines realistic?

• Check your culture – Can people speak up safely? Is poor behaviour addressed?

• Plan your response – Have clear processes for bullying, conflict, or burnout.

• Learn and adjust – Make psychosocial risks part of your regular H&S reviews and toolbox meetings.

👉 The new guidelines are an opportunity to do better for your business and your employees. Let’s not wait for another headline tragedy before we act.

How Wellbeing First can help you

All of our workplace wellbeing offerings are designed to guide and support organisations to adhere to the WorkSafe's guidelines and are based on global standards such as ISO 45003 and the Australian Codes of Practice.

• Wellbeing Tick - The focus on psychosocial risk commences in Level Two of the Wellbeing Tick Accreditation under the Reduce the Risks pillar. It helps workplaces to start the journey by defining the language, learning how to identify and monitor risks and creating processes for raising and resolving concerns around psychosocial hazards. In Level Three, the work continues to evolve into Senior Leadership Commitment, Psychological Safety and a Case Study on an identified psychosocial risks/s worth 25% of the Accreditation Outcome.

  
  

• Culture Check - The same criteria is followed from Wellbeing Tick but it's a self-assessment process with less support. An ideal starting point for workplaces wanting to embark on their psychosocial hazard management journey.

  
  

• Wellbeing in Practice - our tailored coaching and mentoring programme that meets the team and organisation where they're at. At a cadence you feel is appropriate, we agree upon key objectives and work towards building a plan and strong foundations.

  
  

• Insights to Action - builds on Wellbeing in Practice to include an company-wide deep dive survey and/or focus groups to identify key wellbeing insights and gathers a psychosocial risk assessment.

👉 Like to know more and chat about how to fulfil your legal obligations? Book a free intro chat with Philly or head over to www.wellbeingfirst.co.nz.