In this three-part series on the impact of the Managing the Risk of Psychosocial Hazards at Work Code of Practice, we will look at what changes have been brought into effect due to the Code, but also take a deeper dive into some of the extensive guidance information that the Code provides.

Since its publication in April 2023, Queensland’s Managing the Risk of Psychosocial Hazards at Work Code of Practice (2022) has reshaped how businesses think about workplace safety -putting psychological health on a par with physical health and safety in legal duties and everyday operations. The Code, introduced under the Work Health and Safety Act 2011, was the first legally enforceable psychosocial hazards code of its kind in Australia, giving employers clear, practical steps to identify, assess and control psychosocial risks like stress, bullying, harassment, poor job design and other workplace pressures.

One of the most significant impacts for Queensland businesses in the nearly 3 years since its release, is the shift from “passive compliance” to “proactive risk management”. The Code requires all employers, from small enterprises to large corporations, to adopt a systematic risk-management approach for psychosocial hazards. This means identifying hazards, assessing risk levels, implementing controls and reviewing effectiveness in much the same structured way physical hazards are handled. It also explicitly applies to all workplaces covered by the WHS laws, including contractors and volunteers, and makes clear that organisations must either comply with the Code or demonstrate an equally effective alternative approach.

For many businesses, this has entailed cultural and operational change. Employers are investing more in mental health training, as well as communicating and consulting with workers to understand how workplace design, management practices and interpersonal behaviours can affect staff wellbeing. Consultation and worker involvement are core features of the Code’s guidance, helping organisations tailor risk controls that suit their context, operations and importantly, their workforce.

From a legal and compliance perspective, the Code forms part of the evidence that Regulators use when assessing whether a business has met its legal obligations. This has encouraged more organisations to document their psychosocial risk strategies and to integrate them into broader health and safety systems to mitigate the risk of enforcement action, workers’ compensation claims or reputational harm.

There have also been positive business outcomes linked to the Code’s adoption. Many employers report improvements in workplace morale, reduced conflict and more open dialogue about mental health and wellbeing. Proactive psychosocial risk management can lead to lower absenteeism and increased productivity as staff feel safer and more supported – a benefit highlighted by Regulators and workplace advisers as one of the key incentives for compliance.

However, challenges remain. Smaller businesses in particular have noted the resource and knowledge burden of implementing structured psychosocial risk processes, especially where dedicated WHS expertise is limited. Whilst the Code clarifies obligations, it also increases expectations on employers to understand and act on complex psychological risk factors.

Overall, Queensland’s Psychosocial Hazards Code of Practice has pushed businesses toward more mature, legally anchored and proactive approaches to mental health and wellbeing, shifting both organisational culture and regulatory practice across the state.

In next month’s Insight, we will explore the Code in more detail, highlighting the extensive guidance available to support organisations in identifying psychosocial hazards in the workplace.

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