SafeWork NSW has unveiled a plan to address worsening employee mental health claims.

The state regulator’s Psychological Health and Safety Strategy 2024-26 outlines how it will help employers manage risks and comply with their duty to prevent psychological harm in workplaces.

The plan includes new initiatives such as industry forums to identify psychosocial hazards and resources to help employers comply with workplace health and safety regulations.

SafeWork NSW will also step up oversight of businesses, focusing on compliance in high-risk and large organisations.

“This includes inspectors completing psychosocial [work health and safety] checks when visiting any businesses or agency with 200 or more workers,” the strategy paper says. “If these organisations have not taken appropriate action in consultation with workers to comply with ... legislation, we will take regulatory action as appropriate.

“SafeWork NSW may prosecute workplaces that repeatedly do not comply or where they have seriously breached [work health and safety] laws.”

The strategy paper says psychological injuries continue to rise in number and severity despite past efforts to address the problem. NSW data shows psychological claims rose 30% between 2018-19 and 2022-23, compared with 11% for physical claims.

“The average cost and time off work in these cases is more than triple that of physical claims,” the paper says.

The paper says the annual cost of absenteeism due to mental ill health is an estimated $825 per employee, and the cost of psychologically unsafe workplaces to NSW is about $2.8 billion.

“By addressing psychosocial risks, we are not only protecting the health of our workforce, we are protecting the businesses of NSW from lost participation and productivity,” State Minister for Small Business Steve Kamper said.

Click here for the strategy.