Lessons from recent Australian psychosocial risk cases: implications for New Zealand organisations

Warning: this article discusses workplace suicide.
Recent psychosocial risk cases in Australia offer practical guidance for New Zealand organisations dealing with workplace processes that may give rise to psychosocial harm. They also serve as a reminder that organisations must manage psychosocial risks with the same level of care they apply to physical risks.
In New Zealand, we have seen WorkSafe issue an improvement notice in relation to alleged bullying and harassment at Starship children's hospital, and engage with several schools after allegations of bullying of staff, but nothing more significant. Recent Australian actions by regulators provide insight into how WorkSafe might in the future approach other psychosocial risks arising from workplace processes.
Defence worker's death
In late December 2025, Australia's Department of Defence (Defence) was convicted and fined AUD188,000 after a worker died by suicide while on duty at a Royal Australian Air Force base in New South Wales.
Before his death, the worker had been subjected to four separate "Work Plans" to improve his performance over a six-month period. Over the course of this process, he had exhibited escalating signs of distress and ill-health and was also experiencing issues in his personal life, all of which was known to Defence.
Defence pleaded guilty to breaching its primary health and safety duty under the Commonwealth Work Health and Safety Act, by failing to provide the necessary training for supervisors involved in the use of the draft Work Plan procedure as a performance management tool.
The regulator identified several risk controls that were available to (but not exercised by) Defence, including training supervisors on the identification of psychosocial risks during a performance management process. Defence was also criticised for not having taken steps to help relieve the worker's stress, including by referring the worker for support.
In addition to the fine, the sentencing Magistrate made an adverse publicity order, which requires Defence to publicly disclose details of its breach on terms imposed by the Court.
Restructuring in the tertiary education sector
2025 also saw New South Wales' health and safety regulator,SafeWork, intervene in two significant university restructures:
- At Macquarie University, an improvement notice was issued following a union complaint about communications around a major restructure involving substantial job losses and course cuts. The improvement notice required the university to consult with workers affected or potentially affected by the proposed changes, in accordance with agreed procedures.
- University of Technology Sydney (UTS) was issued a prohibition notice, requiring it to pause a planned staff reduction affecting hundreds of jobs, after reports of high stress and a "culture of fear" amongst staff. The prohibition notice was issued after the regulator investigated psychosocial risks arising from the restructure.
What can New Zealand organisations learn from these cases?
The Health and Safety at Work Act is closely modelled on the equivalent Australian legislation, so these cases have the potential to be nfluential here. We are yet to see WorkSafe try to prosecute failures relating to psychosocial risks, but the Australian cases show what may be in store for organisations failing to appropriately manage these risks when carrying out employment processes.
Key learnings are:
- Psychosocial risks are just as important as physical risks. Organisations must consider (and takes steps to mitigate) the risk of psychosocial harm caused by relationships, job design and the working environment.
- Policies and procedures are not enough, if they are not effectively implemented. Monitoring, training and supervision are essential, as is compliance with collective and individual employment agreements.
- A proactive approach is required. Organisations must identify and address risks pre-emptively, rather than reacting to issues when they arise. Be the fence at the top of the cliff, and not the ambulance at the bottom.
As expectations around psychosocial risk management continue to evolve, organisations may benefit from reviewing how they support psychological health and safety at work. If you would like guidance on navigating these issues or strengthening your workplace practices, our employment and health and safety team would be pleased to assist.





