Psychosocial Hazards in the Spotlight: NSW Health District Faces WHS Charges
A NSW health district is facing charges under the Work Health and Safety Act (2011) for exposing two workers to psychosocial hazards linked to a poorly managed workplace investigation. SafeWork NSW alleges that the Western Sydney Local Health District (WSLHD) failed to ensure a fair and just process, creating a risk of psychological harm through poor organisational justice and a failure to resolve workplace grievances.
Workers subjected to unfair processes
In August 2020, two nurses from WSLHD were involved in an incident where a patient who had absconded from a secure mental health facility was placed in seclusion. Complaints were made about the nurses' conduct, triggering a clinical review. The nurses were subjected to investigative procedures that SafeWork NSW claims did not follow WSLHD’s own policies and lacked appropriate risk management.
Both nurses passed away in November 2020. SafeWork NSW is not alleging that WSLHD’s actions caused their deaths or that they suffered psychological harm, but that the organisation’s failure to follow proper investigative procedures created an unnecessary psychosocial hazard, specifically poor organisational justice and failure to resolve workplace grievances.
Note: Poor organisational justice is identified as a common psychosocial risk in Safe Work Australia’s Model Code of Practice for Managing Psychosocial Hazards at Work.
Obligations under WHS law
SafeWork NSW has charged WSLHD under sections 19 ("Primary duty of care") and 33 ("Failure to comply with health and safety duty–Category 3") of the WHS Act (2011). The prosecution argues that WSLHD failed to manage risks associated with workplace investigations, including poor organisational justice and failure to apply its own policies on workplace investigations.
In court, WSLHD argued that workers’ statements about their experiences were irrelevant because psychological harm was not an element of the offence. However, the judge ruled that these statements were relevant in assessing whether WSLHD had failed to control foreseeable risks of psychological harm.
A case that highlights the increasing focus on psychosocial risks
This case is one of the first we have seen where poor organisational justice is being directly called out as a psychosocial risk that was not adequately managed under WHS law. It signals a growing focus by regulators on psychosocial hazards, from dedicated enforcement teams within SafeWork to increasingly prescriptive WHS laws on psychological health introduced in recent years.
Our Founder and Principal Consultant, Amy Towers, explains:
“The landscape is shifting. We are seeing more attention from regulators on psychosocial risks, holding businesses accountable for inadequate management. This is evident through an increase in improvement notices related to psychosocial risk management and prosecutions such as this. Businesses need to be proactive in addressing these risks—failure to do so can have serious legal and operational consequences and affects workers’ health."
How Risk Collective has helped our clients manage these risks…
It’s interesting to see this case come up now, as Risk Collective is nearing the end of a project dealing with similar challenges—without the incident.
A recent client had already identified psychosocial risks not only in their performance management and workplace investigations but also in how they respond to critical incidents and the psychological impact on staff exposed to them. They engaged us to review and update their policies, procedures, risk registers, and legal registers to better manage these risks.
As we near completion, the organisation is now in a strong position to put these changes into practice and improve the way they support employees in high-stress situations.
Need support with psychosocial risk management?
Risk Collective are specialists in psychosocial risk management programs, helping businesses proactively manage these challenges. Our expert team, led by Amy Towers, Principal Consultant and Steven Booker, business psychologist, can assist in building and implementing effective strategies. If you want to know more about psychosocial risk management, reach out to us for a consultation.