Growth mindset. Safer workplaces.
When most small business owners hear “workplace health and safety”, they think of trip hazards, PPE and first aid kits. Those still matter. But since 1 April 2023, Queensland employers have also had a clear legal duty to manage the risks to their team’s psychological health.
Here is the part that surprises people. Most psychosocial hazards are not accidents. They come from how work is designed and how people are led: workloads, rosters, how change is announced, and how a complaint is handled.
That makes it a leadership issue first, and a policy issue second.
This article walks through what the law expects, the hazards to look for, and why your mindset as a leader is one of the first things worth examining.
What does the law require in Queensland?
Three obligations now overlap, and most small businesses are caught by all three.
| Obligation | What it means for your business |
|---|---|
| Manage psychosocial risks | Identify psychosocial hazards and eliminate or minimise risks so far as is reasonably practicable. |
| Sexual harassment prevention plan | Maintain a written plan that workers can find and understand, and review it as required. |
| Positive duty | Take reasonable and proportionate steps to eliminate sexual harassment before it happens, rather than simply responding to complaints. |
The Queensland Code of Practice was updated on 1 September 2026 to align its sexual harassment provisions and issue resolution processes with the national model codes.
If you downloaded a copy before then, make sure you are working from the current version.
The 14 psychosocial hazards, in plain English
A psychosocial hazard is something arising from the design or management of work, the work environment, plant, or workplace interactions that may cause psychological harm.
The Queensland Code identifies 14 hazards. For small businesses, it helps to think about them in four groups.
| Group | Hazards identified in the Code |
|---|---|
| Job design | High and low job demands, low job control and low role clarity |
| People and behaviour | Poor support, poor workplace relationships including conflict, bullying, harassment including sexual harassment, and violence and aggression |
| Environment | Poor environmental conditions, remote or isolated work, and traumatic events |
| Management | Poor organisational change management, low reward and recognition, and poor organisational justice |
These hazards rarely arrive alone.
A team dealing with high workloads and poor management support is likely to face greater risks than a team experiencing either issue in isolation. It is important to look at how different hazards interact, not just tick them off individually.
One thing worth clarifying: fatigue often appears in workplace training material as a hazard. It is not one of the 14 specifically named in the Queensland Code, although it can result from high job demands and poor rostering.
Where your leadership mindset comes in
A mindset shapes how you interpret and respond to a situation: a mistake, a complaint, a change or a difficult conversation.
The same situation can either protect your team or contribute to psychological harm, depending on how you respond.
A fixed mindset tends to avoid risk, fear failure, blame others or the system, work in isolation and dismiss feedback.
A growth mindset looks for opportunities to learn, takes ownership of outcomes, works collaboratively and uses feedback to improve.
Nobody stays in one camp all the time. Most of us slip into fixed habits when we are busy, under pressure or dealing with something uncomfortable.
A useful self-check comes from the Conscious Leadership Group’s concept of leading from above or below the line.
Above the line, you are open, curious and willing to learn. Below it, you become defensive, closed off and more concerned with being right than understanding the situation.
Everyone drops below the line. What matters is how quickly you notice and shift.
Here is how everyday leadership habits can contribute to the psychosocial hazards your business needs to manage.
| When a leader… | It can contribute to… | A better response |
|---|---|---|
| Blames people when things go wrong | Poor organisational justice | Look at the system first, then the individual. |
| Keeps plans and expectations in their head | Low role clarity | Clarify roles, priorities and what good performance looks like. |
| Announces changes without asking for input | Poor change management | Consult early and explain why the change is happening. |
| Avoids difficult conversations | Unresolved conflict and potentially bullying behaviour | Address concerns early, fairly and consistently. |
| Dismisses concerns or feedback | Poor support | Listen, take appropriate action and close the loop. |
Three ways to keep your leadership mindset on track
1. See it as an opportunity to learn.
Instead of immediately looking for someone to blame, ask yourself: What can I learn from this, and what can the team learn too?
2. Use the power of “yet”.
Saying “I don’t know how to do that yet” acknowledges that there is room to improve. It also helps create an environment where employees feel safer admitting they need support.
3. Make it safe to raise mistakes and concerns.
When people fear being blamed, they often stop reporting problems. That leaves you trying to manage risks you may not even know exist.
One important distinction: reasonable management action, carried out in a reasonable way, is not bullying. Performance conversations still need to happen. What matters is that they are handled appropriately, fairly and respectfully.
Managing psychosocial risks: Four practical steps
Psychosocial hazards need to be managed in much the same way as physical workplace hazards, with consultation with workers throughout the process.
1. Identify the hazards
Talk to your team, conduct a short survey and observe how work actually happens. Review incidents, turnover, sick leave and complaints. Consider the physical environment, including noise, lighting and ergonomics.
2. Assess the risks
Consider how often and for how long people are exposed to each hazard, how serious the potential harm could be, and whether several hazards are occurring together.
3. Implement controls
Work through the hierarchy of controls to eliminate hazards where possible or minimise the risks. A combination of measures will often be needed.
4. Review the controls
Check whether your measures are working. Review new or changing risks, consult with workers and make adjustments when needed.
Keep a written record. A short, dated risk assessment is a practical way to document the work you have done and the decisions you have made.
Work down the hierarchy of controls
The Queensland Code sets out three levels of control, starting with the most effective. Using excessive workloads as an example:
- Eliminate the hazard. Remove the source of the risk where possible. For example, redesign the work so deadlines are realistic.
- Redesign the work. Change the systems or arrangements contributing to the problem. This might mean adding staff during peak periods, changing rosters or fixing an inefficient workflow.
- Use administrative controls. Introduce policies, procedures, training and supervision, such as regular workload checks during team meetings. These are generally less effective because they rely on people consistently following the process.
Support measures such as an Employee Assistance Program (EAP), debriefing and counselling are also valuable. However, they help people cope with or recover from harm rather than necessarily removing the underlying hazard.
They should not be the only response when the way work is organised is contributing to the problem.
What does good look like in a small business?
Managing psychosocial risks does not need to mean creating a mountain of paperwork.
For a small team, a concise risk assessment and a practical prevention plan that are actually used can be more helpful than a thick manual that nobody reads.
Start by checking whether your business has:
- A written, dated psychosocial risk assessment.
- A sexual harassment prevention plan that workers can find and understand.
- A process for consulting workers about hazards, controls and workplace changes.
- Clear position descriptions, priorities and reporting lines.
- Managers who know how to raise concerns early and manage performance fairly.
- A safe way for employees to report concerns, with a fair and timely process for responding.
The aim is not simply to have the right documents on file. It is to make sure the way your business operates supports a psychologically safe workplace.
Practical guidance. Clear outcomes.
Ready to strengthen your workplace foundations?
Don’t wait for a complaint or a workplace issue to reveal gaps in your HR and safety processes.
Take a proactive approach. Book a free 20-minute Discovery Call with Kindred HR to discuss your current workplace practices, identify potential risks and work out what needs attention first.
You’ll get practical guidance on the next steps to help protect your people, strengthen compliance and build a healthier, more sustainable business.
Strong people foundations. Better business outcomes.
[Book your free Discovery Call] or text Jen on 0447 459 145.
Kindred HR provides practical HR and payroll advisory services to small businesses across Australia.
General information only, not legal advice. Seek advice from an employment lawyer for guidance on your specific circumstances.
Strong people foundations. Better business outcomes.
General information current at 27 October 2026. Kindred HR provides HR advice only, not legal advice. For legal advice about your specific circumstances, speak with an employment lawyer.
Sources
Emily Harvey, Hall & Wilcox, Leadership Webinar: Psychosocial safety in the workplace, 27 October 2026.
Managing the risk of psychosocial hazards at work – Code of Practice 2022, WorkSafe Queensland
Updates to WHS codes of practice, September 2026 – WorkSafe Queensland
Sexual harassment and sex or gender-based harassment – WorkSafe Queensland