Bosses to be slapped with on-the-spot fine if they break this new workplace rule: What you need to know

A new type of workplace inspector can issue on-the-spot fines to employers if they have a negative impact on their workers' mental health. 

The NSW state government has announced a massive $127.7million investment over four years to address psychosocial hazards in companies from June 2025. 

These are issues which negatively impact workers' mental health such as poor support, low job control, bullying or harassment. 

As part of the campaign, SafeWork NSW will introduce 51 new inspectors, 20 of whom will be focused on psychosocial incidents.

Specialist staff will be able to issue employers with on-the-spot fines, 7News reports. 

They will also ensure companies have a mental‑health contact and investigate any relevant incidents reported to SafeWork. 

The role will also allow the inspectors to organise resources for employers and improve ways of preventing psychological injury.

Recently trained inspector Mercedes Wilson said she took on the new role after working as an injury management specialist in the compensation industry.

New inspectors whose aim is to protect employees from mental health hazards at their workplace have been introduced in New South Wales (stock image)

New inspectors whose aim is to protect employees from mental health hazards at their workplace have been introduced in New South Wales (stock image)

The NSW state government announced a massive $127.7million investment over four years to address psychosocial hazards in companies from June 2025

The NSW state government announced a massive $127.7million investment over four years to address psychosocial hazards in companies from June 2025 

'An uplift in psychosocial inspectors is going to help prevent those injuries from occurring in the workplace and allow for a safer and healthier work environment,' she said. 

SafeWork NSW Commissioner Janet Schorer said that inspectors have not come from one specific background.

Some new inspectors have worked in psychology, social work and nursing.

Minister for Work Health and Safety Sophie Cotsis said every worker has the right to be safe at work. 

'We will take a firm stance to address persistent issues, working with industry, unions, workers and their representatives to secure compliance with our work health and safety laws,' she said. 

Mental health conditions are the 'most expensive work-related injury or illness claim', according to the Melbourne-based law firm Piper Alderman.

SafeWork Australia's most recent report on psychological health in companies across the country found the median compensation paid for mental health conditions was more than three times higher than for physical injuries and illnesses.

It also found mental health conditions accounted for nine per cent of all serious workers' compensation claims in the year 2021 to 2022, marking a 36.9 per cent increase since the year 2017-18. 

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