In New South Wales (NSW), it is becoming increasingly common for workers to suffer psychological injuries as a result of their work or workplace conditions. Workers compensation is designed to provide financial support to workers who suffer injuries or illnesses related to their job, including psychological injuries.
In 2022, there were 497,300 reported work-related injuries in Australia. Of all work-related injuries, 6.8% were classified as ‘stress or other mental health condition.’ That is over 33,000 psychological injuries. In 2020, the NSW Population Health Survey reported that approximately 17% of people had experienced high or very high psychological distress.
From 2012 to 2016, psychological injuries accounted for approximately 6% of active claims. By 2021, this had almost doubled to 11% (about 20,603) of active claims. The State Insurance Regulatory Authority (SIRA) reported that NSW Government employers are disproportionately represented in primary psychological injury claims. Stronger Communities represented 45.3%, Education represented 31.1%, and Health Represented 20.7%.
It is important that workers understand that psychological injuries are common, and can be caused by a number of things including, but not limited to:
- Work-Related Stress: for example, if an employee’s job leads to excessive stress, anxiety, or other psychological issues, and these issues are directly linked to the workplace.
- Bullying, Intimidation and Harassment: for example, if an employee experiences workplace bullying, harassment, intimidation or discrimination, which leads to psychological harm.
- Traumatic Events: for example, if an employee witnesses or experiences a traumatic event at work, such as a workplace accident or violence, this may
It is essential that workers, who think they may have suffered a psychological injury, notify their employer as soon as they become aware of their injury. An employer is legally obligated to notify its workers’ compensation insurer within 48 hours of becoming aware that a worker has received a workplace injury. In NSW, worker’s compensation claims are generally administered by icare (Insurance & Care NSW).
To make a successful worker’s compensation claim in NSW, you will need to establish that the injury occurred in the course of your employment and that it was caused by your work or workplace conditions. This may involve providing medical evidence, including reports from healthcare professionals, to support your claim. Legal advice from a professional experienced in worker’s compensation cases can be invaluable in this process.
What are an employer’s obligations to avoid psychological harm to employees?
In New South Wales (NSW), as in many other places, employers have a legal obligation to ensure the psychological well-being and safety of their employees. This duty is outlined in the Work Health and Safety Act 2011 (NSW) and the Work Health and Safety Regulation 2017 (NSW). Specifically, the legislation requires that employers must:
- Provide a Safe Work Environment: Employers are required to provide and maintain a work environment that is without risk to health and safety, including psychological health.
- Identify and Manage Risks: Employers must identify and assess potential psychological hazards and risks in the workplace. This includes factors that may cause stress, anxiety, or other psychological harm.
- Implement Preventative Measures: Employers should take proactive steps to eliminate or minimize risks to psychological health. This can involve implementing policies, procedures, and training programs to prevent harm.
- Consult with Employees: Employers are obliged to consult with employees and their representatives about health and safety matters, including psychological well-being. Employees should have the opportunity to provide input and express concerns.
- Provide Support and Resources: Employers should provide support and resources to employees who may be experiencing psychological distress. This can include access to counselling services, employee assistance programs, and other forms of support.
- Report and Record Incidents: Employers must report and record incidents that cause or have the potential to cause psychological harm in the workplace. This data is essential for monitoring and improving workplace safety.
- Regularly Review and Improve: Continuous improvement is a key aspect of an employer’s obligation. This involves regularly reviewing policies and procedures and making necessary changes to enhance psychological well-being.
Failure to fulfil these obligations can result in penalties and legal consequences for employers. It’s important for employers to be proactive in addressing psychological harm in the workplace and creating a safe and supportive environment for their employees.
If you would like to discuss your individual circumstances, please reach out to us online or by phoning (02) 4050 0330.
