Psychosocial risk in manufacturing: Is your business compliant?

Victorian manufacturers must now identify, control and regularly review psychosocial risks under the Occupational Health and Safety (Psychological Health) Regulations 2025 (Vic), which commenced on 1 December 2025. A recent prosecution of a window and door manufacturer shows that regulators expect documented, proactive systems for managing workplace bullying and other harmful behaviour. Information, training and instruction alone will not meet an employer’s obligations. Manufacturers should review their systems of work now to make sure they comply.

Victorian manufacturers now have clear legal duties to manage psychosocial risk, and regulators are prosecuting employers who fall short. Since 1 December 2025, employers have been required to identify psychosocial hazards, control the risks and review those controls. A recent bullying prosecution shows what can go wrong when documented systems are missing.

What did the prosecution involve?

In January 2026, a window and door manufacturer was fined $10,000 plus costs of $7,499.50 in the Frankston Magistrates Court for failing to reduce the risk to the mental and physical health and safety of employees from workplace bullying. The employer had also failed to provide and maintain systems of work, including a documented system of work to identify, report, respond to and eliminate harmful workplace behaviour.

The Court found that the employer had no documented standard of behaviour expected of employees. In particular, the employer had failed to provide employees with:

• information on what constitutes inappropriate workplace behaviour;
• guidance on how and to whom reports of bullying could be made;
• clarity on the role of managers and supervisors in responding to reports; and
• an outline of the processes that would be triggered if harmful behaviour or bullying were reported.

The manufacturer pleaded guilty. The Court noted that, but for the plea, the fine would have been $25,000. The prosecution shows that safety regulators expect manufacturers to have proactive, documented systems for managing harmful workplace behaviour, not just reactive responses after an incident occurs.

What do Victoria’s psychosocial regulations require?

Victoria’s Occupational Health and Safety (Psychological Health) Regulations 2025 (Vic) (the Regulations) commenced on 1 December 2025. The Regulations are important for manufacturers because they apply to how employers manage safety for both employees and contractors.

Under the Regulations, employers must identify psychosocial hazards so far as is reasonably practicable. Employers must do this in consultation with employees (including contractors) and health and safety representatives. For manufacturers, common psychosocial hazards include high job demands, low job control, poor workplace relationships, bullying and harassment and exposure to traumatic events or occupational violence.

How must manufacturers control and review psychosocial risks?

Once hazards are identified, employers must take steps to eliminate any associated risk so far as is reasonably practicable. Where elimination is not possible, the risk must be reduced so far as is reasonably practicable. The Regulations set out a hierarchy of control measures, requiring employers to consider changes to the management of work, plant, systems of work, work design or the workplace environment before resorting to information, instruction or training as a control measure.

This hierarchy is a critical compliance point for manufacturers. Information, training and instruction can only be used as the sole control measure if no other control measures are reasonably practicable. Further, where a combination of control measures is used, information, training and instruction must not be the predominant measure. In practice, simply running a toolbox talk or issuing a policy will not, on its own, satisfy an employer’s obligations under the Regulations.

The Regulations impose an ongoing obligation to review, and if necessary, revise any measures implemented to control psychosocial risks. Reviews are required in the following circumstances:

• before any change is made to a thing, process or system of work that is likely to affect psychosocial risks;
• if new or additional information about the hazards becomes available;
• if an employee (or a person on their behalf) reports a psychosocial injury;
• if a reportable incident occurs;
• after receiving a request from a health and safety representative; or
• if, for any other reason, the existing control measures are no longer adequate.

What should manufacturers do now?

Manufacturers should build regular reviews into their safety management systems rather than treating psychosocial risk as a set-and-forget obligation.

Macpherson Kelley’s Employment, Migration & Safety team regularly advises employers on psychosocial risk management. If you would like help reviewing your systems of work or understanding how the Regulations apply to your business, please reach out today.

The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.