Code of Practice | What Employers Need to Know

From 1 July 2026, there will be significant changes to how work health and safety obligations for NSW employers are regulated.

The changes centre around Codes of Practice, which are published by SafeWork NSW and provide practical guidance on complying with legal obligations across specific work health and safety topics.

From 1 July 2026, these Codes of Practice will become legally enforceable. This means that businesses will need to comply with applicable Codes of Practice or be able to demonstrate that their alternative approach meets an equivalent or higher standard of health and safety.

For NSW employers, this is an important shift. Codes of Practice have historically been treated by many businesses as guidance documents. From 1 July 2026, they will carry greater legal weight and will need to be actively considered as part of an employer’s WHS compliance framework.

What is changing?

In practice, this means that to comply with WHS laws, employers must either follow the specific obligations outlined in applicable Codes of Practice or be able to prove that their alternative methods meet the standard required.

This will be particularly important for Codes such as:

• Code of Practice: Managing psychosocial hazards at work; and
• Code of Practice: Sexual and gender-based harassment.

These Codes cover areas that have traditionally been viewed as HR or people management issues, including employee relations, workplace behaviour, job design, consultation, workload management and organisational change.

The change means these issues should not be treated as standalone HR concerns. They need to be considered through a WHS risk management lens, with appropriate systems, controls and documentation in place.

What do the Codes of Practice require?

The Codes of Practice require employers to take a structured approach to managing hazards and risks.

This includes:

• identifying relevant hazards, including psychosocial hazards and sexual harassment;
• assessing the risks arising from those hazards;
• selecting and applying control measures to eliminate or reduce risk so far as is reasonably practicable;
• consulting with workers about hazards, risks and proposed controls; and
• being able to demonstrate that this has occurred and is part of an ongoing review process.

The final point is particularly important. Employers should be able to show what they have done, why they have done it, who was consulted, what controls were implemented and how those controls are being monitored over time. Documentation is also essential to allow an employer to review what has been done to ensure continuous improvement, and update systems as workplace factors change.

This means documentation is critical. A business may be taking steps internally, but if those steps are not properly documented, it may be difficult to demonstrate compliance if SafeWork NSW makes enquiries. Employers need to be able to demonstrate that they have taken a systematic and ongoing approach to identifying, assessing and controlling relevant workplace risks.

​What is a psychosocial hazard?

For many businesses, WHS compliance has historically focused on physical risks, such as slips, trips, manual handling, machinery, hazardous substances or working at heights.

However, psychosocial hazards and in particular workplace behaviour risks are now a significant area of regulatory focus. These hazards can arise from the way work is designed, managed, supervised and experienced by workers.

Examples may include:

• high or sustained job demands;
• poor support;
• lack of role clarity;
• poor organisational change management;
• inadequate reward and recognition;
• exposure to traumatic material or events;
• remote or isolated work;
• poor workplace relationships;
• bullying;
• harassment; and
• exposure to violence or aggression.

For employers, this means compliance may require more than having an Employee Assistance Program, policies and training in place. While those measures are useful, they may only form part of a broader compliance response. For example, a business experiencing high workloads, staff shortages, complex client interactions or significant change will need to consider how those factors could potentially affect worker health and safety, and take reasonable measures to either eliminate the arising risks or reduce them as far as is reasonably practicable.

How can employers respond to psychosocial hazards?

For psychosocial hazards in particular, employers need to consider a range of factors when assessing risks and selecting appropriate control measures.

These include:

• the duration, frequency and severity of exposure to psychosocial hazards;
• how different hazards may interact with each other;
• the design of work, including job demands;
• environmental conditions;
• systems of work;
• workplace interactions and behaviours;
• interactions between workers, clients, customers and other third parties; and
• the information, training, instruction and supervision provided to workers.

Given the factors outlined above, managing psychosocial risks requires more  more than a generic policy, one-off training session or just having an Employee Assistance Program in place. Employers should consider how psychosocial risks are present in their actual workplace, workforce and operating environment, and what can be reasonably done to eliminate or otherwise minimise the risks.

When considering ways to control risk, employers should consider not just behaviours, but the design of work and what systems are in place to address work health and safety, including psychosocial safety.

What does this mean practically?

Practically, employers should review whether their current WHS and HR processes are sufficient to meet the incoming requirements.

This may include considering whether the business has:

• completed a psychosocial hazard risk assessment;
• consulted with workers about relevant psychosocial hazards;
• identified risks arising from work design, workload, workplace behaviour or change management;
• implemented control measures that address the actual risks present in the workplace;
• documented decisions and actions taken;
• reviewed whether existing policies and training are adequate and effectively implemented;
• ensured managers understand their responsibilities; and
• established a process for ongoing monitoring and review.

SafeWork NSW has also increased its compliance capability in this area, including additional inspectors with a focus on psychosocial hazards.

We have already seen an increase in clients seeking support to respond to SafeWork NSW visits, enquiries and correspondence relating to psychosocial hazards. This includes situations where concerns have been raised through anonymous employee or worker complaints.

This demonstrates the importance of being proactive rather than waiting until an issue is raised externally.

Director and officer responsibility

Directors, officers and board members should also be aware of their personal responsibilities.

Where a business fails to comply with its WHS obligations, officers may also be exposed to personal liability if they have not exercised due diligence to ensure the business is meeting its obligations.

This means leaders should understand the key changes, ensure appropriate systems are in place and be satisfied that the business can demonstrate how it is managing WHS risks, including psychosocial hazards.

What should employers do now?

With the changes commencing from 1 July 2026, now is the time for employers to review their current approach.

Employers should consider:

• which Codes of Practice apply to their workplace;
• whether current WHS systems align with those Codes;
• whether psychosocial hazards have been properly assessed;
• whether workers have been consulted;
• whether control measures are appropriate and documented;
• whether policies and training are current;
• whether managers understand their obligations; and
• whether the business can demonstrate an ongoing compliance process.

This review does not need to be overwhelming, but it does need to be practical, documented and tailored to the workplace.

How can Skildare assist?

Psychosocial hazards are an emerging area of compliance and can be challenging to navigate, particularly when compared with traditional WHS risks.

We have found that the best way to comply with Code of Practice obligations is to undertake a documented risk assessment process that involves consultation with the workforce.

Skildare has supported clients across different sectors to identify psychosocial hazards, assess risk, consult with employees and implement practical control measures.

Given the impending changes, now is a good time to either establish your risk management approach in this area or review what you currently have in place.

Need support reviewing your current approach, undertaking a psychosocial risk assessment or implementing these changes? Book a discovery call with our team today.

‍