The code provides practical guidance on how to manage risks to psychological health in the workplace.  

The code encompasses a broad overview of risks to psychological health. It is relevant to all workplaces. 

The size of the mental health problem 

Psychological injuries include conditions such as depression, stress, anxiety, and post-traumatic stress disorder.  

In all Australian jurisdictions, psychological injuries are only compensable if they arise out of or in the course of employment. In NSW, workers’ comp laws qualify this further by stating that the employment must have been a substantial contributing factor to the injury. Moreover, claims for psychological injuries are not generally accepted if they are related to reasonable management action undertaken in a reasonable way by the employer, for example, in connection with work performance, disciplinary action, transfer or deployment, dismissal, and so on. 

Despite these restrictions, workers' comp claims for mental health conditions increased by 73% in the 19 years from 2000-01 to 2019-20, Australia-wide.  

Mental stress claims involved the longest median time lost for all years since 2000-01. By 2019–20, median time lost for these claims had risen to more than three times the median time lost for all claims (29.3 working weeks, compared to 7.0 for all claims).

Mental stress also accounted for the largest rise in median compensation payments from 2000–01 to 2019–20. This increased by 273% from $14,500 in 2000–01 to $53,900 in 2019–20., making it a very expensive problem for employers and pushing up the cost of workers comp insurance. 

These numbers are likely to underestimate the true size of the problem. Research indicates that as many as 60% of eligible employees don’t apply for workers' compensation. 

Though it’s clearly a massive problem, less than 9% of NSW workplaces say they have a systematic approach to managing psychological health issues. 

Most workers comp claims for psychological injuries are attributed to a mix of work-related harassment, or workplace bullying, excessive work pressure, exposure to occupational violence, or a traumatic event. 

If mental health at workplaces can be improved, there will be fewer organisational disruptions and associated costs, and performance and productivity may also receive a boost.

What’s in the code? 

The 39-page code provides information and advice on work-related psychosocial hazards and risks to psychological health. It explains who has duties in relation to psychological health and what’s involved in managing the risks. 

It sets out detailed guidance on identifying, assessing, controlling and monitoring the risks and management strategies, and includes sections on responding to reports of psychosocial risks or incidents, and on supporting a safe return to work. 

It also has two appendices, including one with many examples of control measures, and another with an example of a risk register.