Obligation vs legislation: Protect your employees and your business

$380,000 Fine for harmful work culture

A reminder for leaders to make employee mental wellbeing a priority + the new right to disconnect legislation.

Court Services Victoria (CSV), the agency responsible for investigating unexpected deaths, has been convicted and fined the maximum penalty for breaching the Occupational Health and Safety Act 2004. This Act mandates that employers provide and maintain a work environment that is safe and free from risks to employee health, including psychological health. CSV admitted it failed to implement adequate processes for identifying psychological risks in the workplace.

The court revealed that between 2015 and 2018, employees were exposed to traumatic materials, role conflict, high workloads, poor workplace relationships, and inappropriate behaviours.  

The impact of this toxic culture was severe. Several workers never returned to work, and one individual was diagnosed with work-related major depressive disorder, and tragically died by suicide.  

WorkSafe Executive Director of Health and Safety Narelle Beer said there was a strong link between a workplace's culture and the mental wellbeing of its workers.

"Everyone in an organisation has a role to play in creating a healthy and safe environment, but the development of a positive culture and appropriate risk control measures depends on leadership from the top," Dr Beer said.

"It is an employer's legal duty to do everything they possibly can to support their workers to thrive in their roles and ensure they leave work each day no worse than how they arrived."

Recommendations from SafeWork to prevent work related mental injuries:  

• Develop leadership skills: Invest in coaching, mentoring, and training to better support employees.

• Implement policies and procedures: Ensure clear reporting and response processes for psychosocial hazards like workplace trauma, bullying, and interpersonal conflict.

• Inform workers of their rights: Make sure employees know their entitlements if they become unwell or unfit for work.

• Manage workloads effectively: Have systems in place for workforce planning and workload management to ensure employees have sufficient resources and a realistic workload.

Lessons for employers

This conviction is a stark reminder of the responsibility which employers bear to actively eliminate psychosocial risks or, if that is not reasonably practicable, minimise them as much as possible. Psychosocial hazards are factors that could cause psychological harm, such as anxiety, depression, post-traumatic stress disorder, and sleep disorders. Policies, procedures, and training are essential to educate and equip leaders to mitigate these hazards.

Proactively managing these risks is not just about avoidance of criminal prosecutions or hefty penalties. More importantly, it is about the well-being of your people.

A reminder of the psychosocial hazards employers need to be aware of:  

• job demands

• low job control

• poor support

• lack of role clarity

• poor organisational change management

• inadequate reward and recognition

• poor organisational justice

• traumatic events or material

• remote or isolated work  

• poor physical environment

• violence and aggression  

• bullying  

• harassment, including sexual and gender-based harassment, and

• conflict or poor workplace relationships and interactions

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The right to disconnect

New legislation is now in place to further protect employees' mental health. As of August 22nd, 2024, organisations with 15 or more employees must respect the right to disconnect. This law allows employees to ignore work communications after hours without fear of repercussions, exists in addition to the Fair Work Act, and is enforceable with hefty fines of up to $94,000 for non-compliance.

A recent survey estimated that Australians worked an average of 281 hours of unpaid overtime annually. This legislation is another step by the government to protect workers' mental health. Employers should match these efforts with diligence and care for their employees. Together with the new psychosocial risk legislation, these measures allow employees to enjoy life outside of work, returning refreshed and ready to contribute. Upholding these values, practicing and communicating them, is a great place to start.

How to best protect your employees

Creating a healthy work culture begins with leadership. Those who set expectations, manage workloads, organise events, and lead teams have the most influence on employee well-being. As an employer, ask yourself: Do my leaders know when they are enforcing psychosocial hazards? Can they support employees through mental health challenges?

Leading mental health program  

Health at Work’s signature program, Leading Mental Health, is designed for emerging, frontline, and senior leaders. Using the Understand, Promote, Protect, and Act framework, this 4-hour workshop equips leaders with essential skills to create mentally healthy workplaces. The blend of contemporary theory, shared lived experiences, and practical activities makes this program engaging and rewarding for participants.

Four Essential Mental Health Skills for Leaders:

Mental Health 101

• Understanding mental health and its key contributors

• The impact of mental illness on the workplace

• What constitutes a mentally healthy workplace?

• The PERMA Wellbeing model

Promoting Positive Wellbeing

• Proactive strategies to build resilience

• Reactive strategies to identify stress indicators

• Developing a personal wellbeing plan

• Understanding the impact leaders have on the work environment

• Practical skills to promote the mental health of your team

Acting on Mental Health Issues

• Identifying and addressing mental health issues

• Promoting recovery and return-to-work pathways

• Recognising common mental health issues and signs

• Supporting employees with pre-existing mental health conditions

• Knowing when to seek appropriate support

• Implementing effective return-to-work practices

Protecting Employees from Mental Health Issues

• Identifying and reducing work-related risk factors

• Establishing policies, procedures, values, and business rules to safeguard employees

• Understanding the new psychosocial hazard obligations

Managers and leaders must have the confidence to discuss mental health in the workplace. With training, open communication, and careful evaluation, your workplace can protect and support your employees. Prioritising employee mental health in your budget isn’t just an investment in your people—it’s a safeguard for your entire organisation.

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