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Workers Compensation Psychosocial Risk Assessment

August 2024

With the recent regulatory changes and a heightened focus on psychosocial health, it has become increasingly important for businesses operating in New South Wales to prioritise Workers Compensation Psychosocial Risk Assessment. This step is essential not only to ensure compliance but also to safeguard employee wellbeing. Moreover, at DKG Insurance Brokers, we fully understand the complexities of these new regulations and are therefore here to help you navigate them effectively.

SafeWork NSW’s New Psychosocial Health and Safety Strategy

On 22 May 2024, SafeWork NSW unveiled its Psychosocial Health and Safety Strategy for 2024–2026. This strategy aims to increase regulatory action against high-risk and large businesses, including government agencies, to ensure compliance with the latest psychosocial hazard laws, which were enacted in 2022 and are detailed in the NSW WHS Regulation 2017.

What Large Businesses Need to Know

If your business has 200 or more employees, you could be targeted by SafeWork NSW in the next 12 months as part of their program to ensure compliance with these new laws. SafeWork inspectors will be conducting “Psychosocial WHS Checks” during their visits, specifically looking at how well your workplace manages psychosocial risks.

DKG’s Managing Director, Luke Kelly, commented that, “It is the responsibility of all businesses, organisations and corporations to ensure the safety and wellbeing of their people. This duty falls directly on directors and CEOs to implement and maintain effective measures to meet these requirements. Failure to comply with WHS duties can result in regulatory action and potential prosecution for serious or repeated breaches.”

Understanding Psychosocial Hazards

A psychosocial hazard is an aspect of the work environment that may induce a stress response in a worker or other person, potentially leading to psychological or physical harm. Furthermore, these non-physical hazards must be managed with the same diligence as physical risks to ensure a safe workplace. In addition, the NSW WHS Regulation 2017 provides clear guidance on managing both physical and non-physical risks effectively.

Steps to Ensure Compliance

For large businesses with 200 or more employees, it is crucial to review and update your policies, processes and measures in preparation for these inspections. Here’s how DKG Insurance Brokers can assist:

  1. Risk Assessment and Identification: We conduct thorough assessments to identify potential psychosocial hazards in your workplace. This includes evaluating job demands, organisational culture, and employee relationships.
  2. Tailored Risk Management Plans: Based on our assessment, we develop customised risk management plans to address specific issues within your organisation. These plans are designed to mitigate risks and promote a healthy work environment.
  3. Training and Education: We can help organise training programs to educate management and staff about psychosocial risks and the importance of mental health. These programes equip your team with the knowledge and tools to recognise and address potential issues early.
  4. Support Services: In collaboration with mental health professionals, we provide support services for employees experiencing work-related stress or mental health issues. This includes access to counselling, employee assistance programs (EAPs) and other resources.
  5. Continuous Monitoring and Improvement: Our commitment doesn’t end with implementation. We continuously monitor the effectiveness of our risk management strategies and make necessary adjustments to ensure ongoing improvement.

Partner with DKG Insurance Brokers

Kelly concluded, “By partnering with DKG Insurance Brokers, you can be confident that you’re taking proactive steps to manage psychosocial risks effectively. Our expertise and holistic approach ensure that your business is not only compliant with regulations but also develop a supportive and productive work environment.”

Call one of our Account Managers at DKG Insurance Brokers on 1800 252 926 or email us at insurance@dkg.com.au to learn more about our Workers Compensation Psychosocial Risk Assessment services. We can help you build a workplace culture where mental health is valued and every employee feels supported and empowered.

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