Under the Health and Safety at Work Act 2015 (H&S Law), "health" is defined as both physical and mental health and therefore businesses must manage psychosocial risks as seriously as they manage physical risks.

Psychosocial risks – such as stress, fatigue, burnout, and aggression in the workplace – are increasingly recognised as major contributors to workplace harm in New Zealand. Nowhere is this more evident than in the aged care sector.

Aged care workers operate in emotionally demanding environments. They support residents with complex health needs, dementia, end-of-life care, and challenging behaviours, often while navigating staffing shortages, time pressures, shift work, and high family expectations. When these pressures are not well managed, the impact on the business can be significant: increased sick leave, high turnover, compromised care quality, regulatory scrutiny, rising costs, and reputational damage.

Legal requirements for aged care operators

General requirements

An aged care operator is a "person conducting a business or undertaking" (PCBU) for the purposes of the H&S Law and has all the relevant health and safety obligations imposed on PCBUs under the H&S Law. These include obligations to ensure the health and safety of staff, as well as of residents and visitors to the facility.  

Aged care operators and other PCBUs must, so far as is reasonably practicable:

• provide and maintain a working environment that is safe and without health risks;
• provide and maintain plant and structures and systems of work that are safe and don't pose health risks;
• ensure the safe use, handling, and storage of plant, structures, and substances;
• provide adequate facilities for worker welfare;
• provide information, instruction, training, and supervision needed by workers; and
• monitor health and workplace conditions.

Psychosocial risks

Aged care providers must therefore manage psychosocial risks with the same level of care and diligence as physical risks such as manual lifting/handling or infection control.

This means proactively identifying and managing factors in the work environment that could cause psychological harm. Prevention is key as it will not be enough for businesses to only respond and take action after harm occurs.  

In aged care, factors that could risk psychological harm may include:

• Exposure to resident aggression or challenging behaviours
• Challenging interactions with residents' family members
• Chronic understaffing and/or excessive workloads
• Bullying or conflict within teams
• Long or unpredictable shifts
• Emotional strain from palliative or dementia care
• Poorly defined roles or inconsistent leadership

The law is clear: if harm arises from work-related stressors, it is a work-related risk. Businesses have a legal duty to eliminate this risk or, where a risk cannot be eliminated (for example the risk of violence from a dementia resident), minimise that risk so far as is reasonably practicable. This has been reinforced by recent case law which has demonstrated that failing to manage risks such as sustained high workload, unchecked bullying, or unmanaged occupational violence can result in legal consequences.

For aged care providers, this is particularly important. The courts are signalling that organisations cannot wait until a staff member experiences burnout, psychological injury, or makes a complaint. A reactive approach is not enough. Prevention must sit at the heart of operational planning, workforce design, and leadership practice.

WorkSafe treats psychosocial risk seriously and in 2025 published guidelines to assist businesses in managing psychosocial risks at work.

Managing psychosocial risks in the aged care context

For aged care operators, good practice in managing psychosocial risks include:

• Designing safe systems of work - Rosters must be realistic and roles and responsibilities should be clearly defined. Staffing levels should align with resident care needs. Systems should ensure workers are not routinely placed in situations where they are exposed to avoidable harm, including resident aggression without adequate support.
• Managing occupational violence and aggression - Clear policies, de-escalation training, incident reporting processes, and post-incident support are critical. Workers must feel safe to report concerns without fear of blame.
• Providing training and structured support - Managers and clinical leaders need the skills to identify early signs of burnout and stress. Regular supervision, debriefing after critical incidents, and access to wellbeing support services can make a significant difference.
• Engaging with workers - Frontline caregivers often see risks first. Regular, genuine consultation about workload, psychological safety, and team dynamics helps surface issues early – before they escalate.
• Leadership accountability - Culture is set at the top. Boards and senior leaders in aged care must treat psychosocial risk as a core issue, not a “soft” HR matter. When leaders model healthy work practices and prioritise staff wellbeing, it directly influences care quality and staff and resident safety.

However, as stated above, the law recognises that it may not always be possible to eliminate a risk. In a sector like aged care, that operates in an environment with a number of different challenges, it may be that it is not reasonably practicable to completely eliminate all of the risks of psychological harm. In these circumstances, it is important that an operator can demonstrate that it has completed a robust risk assessment, and that it has taken steps to manage risks so far as is reasonably practicable. If an operator has done this, then they are likely to be complying with its health and safety obligations.

A sound business decision

In aged care, staff wellbeing and resident wellbeing are often interlinked. A fatigued, unsupported workforce cannot consistently deliver safe, compassionate care.

Investing in psychologically safe workplaces is not only the right thing to do – it is a legal obligation and a sound operational strategy. Providers that actively manage psychosocial risks see stronger staff engagement, reduced staff turnover, improved outcomes, and better continuity of care for residents.

How can we help?

For aged care operators seeking guidance or clarity on how health and safety law applies in an aged care setting our Health and Safety team can advise you on practical and workable solutions to help you implement your legal obligations, tailored to the realities of aged residential care.

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