SafeWork NSW Acts on Psychosocial Risks: Lessons from the Macquarie University Case
SafeWork NSW has once again signalled how seriously it is treating psychosocial risks in the workplace.
This week, the regulator issued an improvement notice to Macquarie University over its proposed plan to cut around 60 roles. The concern? That inadequate consultation placed staff at risk of psychological harm.
This follows a September case where SafeWork NSW issued a prohibition notice to the University of Technology Sydney, halting redundancies on the grounds of “serious and imminent risk of psychological harm.”
Together, these actions highlight a clear regulatory trend: psychological health is now clearly central to WHS compliance.
Why this matters to all employers
Psychosocial hazards are no longer a “soft” issue – they are a recognised part of workplace health and safety law. Regulators are prepared to intervene directly if organisations fail to:
Consult meaningfully with workers during restructures, downsizing, or other significant changes.
Identify and manage psychosocial hazards (such as job insecurity, workload change, poor communication, and lack of support).
Integrate psychological health into risk assessments and change management processes.
If universities – with their established HR and legal teams – can face notices of this kind, any employer is at risk if consultation and psychosocial risk management are weak.
What employers should be doing now
Audit your consultation practices – do they meet both WHS and industrial obligations?
Embed psychosocial hazard assessments into every major organisational change project.
Train leaders and managers to recognise and manage risks of psychological harm.
Document and review all risk assessments and consultation records – regulators will ask for evidence.
How Anzen Can Help
We work with organisations to:
Conduct gap analyses of current consultation and change management practices.
Develop psychosocial risk management plans that align with WHS law and the Code of Practice.
Provide training and coaching for managers on managing psychosocial risks during change.
Design consultation frameworks and communication strategies that withstand regulator scrutiny.
Final word
The Macquarie and UTS cases are a turning point. SafeWork NSW is making it clear that psychosocial risks are a frontline enforcement priority. Employers who treat consultation as a “tick-the-box” exercise risk legal action and reputational damage.
Now is the time to act proactively. If you’d like to explore how your organisation can strengthen its approach, let’s have a conversation.
Call Us | 1300 269 361
Email us | info@anzen.com.au
