Workers Compensation and Mental Health
If you’re hiring people in Tasmania, mental health isn’t just “nice to have”—it’s part of your duty of care and a growing driver of claims.
As the local insurance broker Tasmania turns to for advice in these areas, RSM Tasmania is seeing more employers ask how workers compensation responds to psychological injuries like stress, burnout, bullying and trauma—and what they can do to prevent them.
Why this matters now
Employers have a legal responsibility to protect workers’ psychological health and safety—not only their physical safety. That duty sits alongside your workers compensation obligations.
worksafe.tas.gov.au
Nationally, mental health conditions made up around 9% of serious workers’ compensation claims in 2021–22, a ~37% rise since 2017–18, and these claims typically involve far more time off than physical injuries.
Safe Work Australia
What counts as a psychological injury?
In simple terms: a diagnosable mental health condition that is caused (to the required legal threshold) by work—for example prolonged work‑related stress, exposure to traumatic events, or sustained bullying/harassment.
Formal guidance for managing these claims emphasises early reporting, coordinated treatment and safe, staged return‑to‑work.
worksafe.tas.gov.au
Common psychosocial hazards we’re seeing
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- Workload & fatigue: chronic understaffing, unrealistic deadlines, excessive hours
- Poor role clarity: constant change, unclear expectations
- Conflict & conduct: bullying, harassment, client aggression
- Trauma exposure: first responders, health, community services
- Low support: limited supervision, poor recovery planning
Policy “gotchas” to review (now, not later)
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- Coverage clarity: Ensure psychological injury is clearly in scope and well understood by your leadership and HR teams.
- Claims pathways: Do staff know how to report a psych injury early (and confidentially)?
- Provider network: Line up experienced GPs/psychologists and RTW providers who understand psych claims.
- Supervisor training: Managers need scripts and steps for early conversations and accommodations.
- Documentation: Keep clean records of risks, controls, training and any performance‑management actions.
Five practical steps to reduce risk
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- Name the risks: Add psychosocial hazards to your risk register; consult staff and HSRs.
worksafe.tas.gov.au - Tidy the basics: Clear roles, reasonable workloads, predictable rosters, real breaks.
- Upskill leaders: Teach early warning signs and supportive check‑ins; separate performance issues from health.
- Make reporting easy: Anonymous options, timely triage, no‑blame culture.
- Plan recovery: Pre‑agreed duties for graded return‑to‑work; review and adjust frequently.
- Name the risks: Add psychosocial hazards to your risk register; consult staff and HSRs.
At RSM Tasmania, we help local employers tighten prevention, make sense of cover, and handle claims with care. For more information on Workers Compensation in Tasmania, our dedicated site has practical guides and contact options: https://wcomptas.com.au
Useful government resources
WorkSafe Tasmania – Rights & responsibilities for psychosocial hazards (clear summary of employer duties).
worksafe.tas.gov.au
Safe Work Australia – Psychological health & safety (latest national trends).
Safe Work Australia
WorkCover Tasmania Board – Best‑practice framework for psychological claims (claims management guidance).
worksafe.tas.gov.au
This article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at RSM Tasmania Insurance Brokers Hobart.
Talk to Roger Hosie and stay ahead with RSM Tasmania’s insights.
Call Now! (03) 6244 7854, or email .
