16th December 2025

A national multidisciplinary study has found that many small and medium-sized enterprise (SME) decision-makers remain unaware of their legal obligations to manage psychosocial hazards, posing serious risks to worker wellbeing and compliance with work health and safety laws.

The research, conducted by Dr Rebecca Langdon, from the QUT School of Management, Associate Professor Nektarios Karanikas, from the  QUT School  of Public Health and Social Work and Associate Professor Carol Hon, from the QUT School of Architecture & Built Environment, surveyed 288 SME decision-makers across Australia to understand awareness and practices around psychosocial risk management.

Psychosocial hazards are aspects of work design, management, environment, plant, behaviours or interpersonal interactions that can lead to psychological (and potentially also physical) harm.

Key findings of the report include:

  • A large proportion of SME leaders were unaware of their legal obligations under WHS legislation.
  • Many SMEs lack formal policies or designated personnel for psychosocial risk management.
  • A significant number of decision-makers had never heard of the Code of Practice for Managing Psychosocial Hazards at Work.
  • The smallest enterprises (1–19 employees) appear least engaged, often relying on informal arrangements and rarely identifying hazards.
  • Many enterprises assign responsibility to HR personnel, despite obligations falling under WHS legislation.

Dr Rebecca Langdon said the findings highlight an urgent need for targeted education and practical tools for SMEs.

“Psychosocial hazards can seriously affect mental and physical health, yet many SMEs are not meeting their legal obligations,” Dr Langdon said.

“With SMEs employing around 65 per cent of Australia’s workforce, improving awareness and compliance is critical.

“We need scalable solutions and campaigns that make it easier for these businesses to protect worker wellbeing and meet regulatory requirements.”

The report is produced by the QUT Centre for Decent Work & Industry and the Australian Centre for Health Law Research.

Read the full report Psychosocial hazard management in SMEs online.

Top image, from left: Dr Rebecca Langdon, Associate Professor Nektarios Karanikas, and Associate Professor Carol Hon.

 

Media contact:

Rod Chester

QUT Media

media@qut.edu.au

07 3138 2361 / 0407 585 901 (After Hours)

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