Director's Brief

Psychosocial Risk & Due Diligence: A Practical Guide for Boards

What directors and board members need to know about their personal obligations under evolving work health and safety laws, and practical steps to meet them.

Your due diligence obligations under WHS law

Five questions every board should be asking

Practical first steps for immediate action

1. The Context: Why This Matters Now

Australian organisations have made significant progress in prioritising physical work health and safety. Regulators now expect the same level of focus and oversight to be applied to psychosocial risks.

Directors have individual legal obligations under Work Health and Safety (WHS) laws to exercise due diligence in relation to their organisation's compliance. This includes taking reasonable steps to understand psychosocial risks in the workplace and confirming that appropriate resources and processes are in place to manage them.

Key Statistics

Mental health conditions account for 9% of all serious workers' compensation claims – a 36.9% increase since 2017-18

Psychosocial hazards can stem from job design, management practices, the work environment, and workplace behaviours or relationships

Unlike physical hazards, psychosocial risks are often less visible and may only become apparent after harm has occurred

2. What Are Psychosocial Hazards?

Psychosocial hazards are factors in the design or management of work that increase the risk of work-related stress and can lead to psychological or physical harm. These may include...

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