Psychosocial risks ‘now squarely in the crosshairs’ of regulators

The recent order from SafeWork NSW for UTS to pause its planned job cuts over serious psychological harm risks reflects a growing trend of regulators treating such risks as a core business-critical issue.

As reported earlier this month, the NSW workplace regulator has issued a prohibition notice to UTS’ plans to axe up to hundreds of jobs, as well as several courses. The notice followed reported emails being sent out to up to 800 staff members, advising them they could be in line to lose their roles under proposed restructures to address the university’s financial troubles, which intend to save up to $100 million in cost cuts.

However, SafeWork NSW has now issued a prohibition notice to the embattled university, effectively pausing UTS’ plans for now.

In a statement to HR Leader, a regulator spokesperson said: “SafeWork NSW can confirm a prohibition notice was issued to the University of Technology with regard to allegations of risk of psychological harm. The prohibition notice remains in place until SafeWork NSW is satisfied that the University of Technology has rectified the issues raised within the notice.”

“SafeWork NSW will continue to work with the University of Technology on the matter.”

The regulator’s move, DLPA co-founder and managing director Karlie Cremin told HR Leader, reflects a broader trend: regulators are increasingly treating psychosocial risk as a core business-critical issue.

“This is the type of activity we expect to see increasingly from regulators as psychosocial hazards gain greater focus,” she said.

“For too long, these risks have not been properly considered, but workers are now more educated about their rights and remedies.

“Psychosocial is now squarely in the crosshairs, and organisations need to ensure their houses are in order.

“It is not the ‘soft, fluffy stuff’ some organisations still treat it as. Psychosocial risk is business-critical.

“It needs to be engaged with, documented and appropriately managed across the entire life cycle of the workforce.

“We can expect further interventions like this as SafeWork and other regulators ramp up enforcement.”

Governance issues at Australian universities have been featured prominently in national news outlets in recent months. As reported last week, ANU chancellor Julie Bishop advised the university’s staff and students that Professor Genevieve Bell had resigned as vice-chancellor and president of the university, following months of disgruntlement at the university. In late March, ANU staff issued a vote of no confidence in its leadership, which the university dismissed as a “vehicle for disinformation”.