Psychosocial Safety 2026: The Code that becomes Law

The management of psychosocial hazards and risks in New South Wales workplaces is entering a new era.

From 13 October 2025, the Industrial Relations and Other Legislation Amendment (Workplace Protections) Bill 2025 introduces section 26A (to commence on 1.7.2026) to the WHS Act 2011 (NSW), transforming approved Codes of Practice including the Managing Psychosocial Hazards at Work (2021) Code from advisory guidance into legally enforceable compliance benchmarks. 

In parallel, the WHS Regulation 2025, particularly sections (formerly "clauses") 55C and 55D, formally defines how psychosocial hazards must be identified, controlled and reviewed as per 2025 amendments. Together, these changes elevate psychosocial risk management to the same compliance status as physical hazards.

Amendments to WHS Act establishes Legal Benchmark

Under new section 26A, a PCBU must either comply with an approved Code of Practice or demonstrate an equivalent or higher standard of health and safety. This is a significant shift. A regulator no longer needs to prove harm occurred; simply falling short of the Code may constitute a breach of the WHS Act. The Psychosocial Code becomes the default legal reference point for acceptable risk control, making compliance visible, auditable, and enforceable.

Following the 2021 Code Alone Is No Longer Enough

The 2021 Code still provides a solid foundation, it outlines hazard identification, risk assessment, consultation and early intervention principles consistent with WHS duties. However, the Code predates the 2025 Regulation and does not explicitly reference the mandated hierarchy of control or the wider regulatory considerations now required under sections 55C–55D.

Organisations relying solely on the existing Code without integrating the updated regulatory expectations will fail the “equivalent or better” test under new section 26A.

Higher-Order Controls Are Now Mandatory — Not Optional

The Regulation now requires PCBUs to manage psychosocial hazards using higher-order controls, not just policies or training. It also compels consideration of factors such as exposure duration, job design, workload, environmental layout, information and supervision.

To meet or exceed the Code under section 26A, PCBUs must be able to demonstrate that risk has been reduced so far as reasonably practicable, supported by measurable indicators, documented control effectiveness, and regular review cycles.

What Inspectors Will Demand in 2026 and Beyond

This new legal framework sets a clear compliance expectation. SafeWork NSW inspectors will expect:

• Clear mapping of your controls to the Code or robust justification of alternatives

• Proof the hierarchy of control was applied correctly

• Records of genuine worker consultation

• Documented reviews tied to Regulations 37–38

Failure to produce such evidence can be treated as both regulatory non-compliance and breach of statutory duty.

Psychosocial Risk Management Is Now Core Statutory Duty

For organisations, the implication is straightforward: psychosocial risk management is no longer optional or policy-driven, it is now a statutory requirement backed by clear performance expectations. Those who integrate the Code with the 2025 Regulation into their WHS systems will demonstrate genuine due diligence and minimise exposure to regulatory action. Those who do not risk falling short of the new legal benchmark.

If you would like support ensuring your psychosocial management system complies with, or exceeds, the new requirements, we can help. For more information on WHS training or WHS compliance services, or if you would like help to make your WHS management system even more robust, please feel free to contact us by email at train@courtenell.com.au or phone us on 02 9552 2066