SafeWork NSW has reinforced that employers must manage psychosocial risks like any other health and safety issue, after issuing a prohibition notice to the University of Technology Sydney (UTS) ordering it to pause staff reductions.
A SafeWork NSW spokesperson confirmed the notice requires UTS to halt its downsizing program until it takes steps to minimise the psychological impact on staff.
The university, which has posted financial deficits in recent years, is implementing cost-reduction measures to secure its sustainability. However, the prohibition notice warns that some staff “are and will be exposed to a serious and imminent risk of psychological harm” from the way workforce reductions are being managed.
The notice was issued after SafeWork investigated allegations from staff about a lack of consultation and the way the process was being conducted. It will remain in force until SafeWork is satisfied that the health and safety risks have been addressed.
The Work Health and Safety Act 2011 requires employers to manage psychosocial risks like any other health and safety issue.
What this means for your business
While this case arises from the higher education sector, the lessons apply equally to the civil construction industry. Under the NSW WHS Act and the Managing Psychosocial Hazards at Work Code of Practice, all PCBUs must identify and control risks that could cause psychological harm, whether from organisational change, work overload, poor communication, or lack of consultation.
Psychosocial hazards can arise not just from restructures, but from:
- Tight project deadlines and resourcing pressures
- Remote or isolated work
- Poorly managed conflict or performance processes
- Job insecurity from contract changes
Failing to address these risks can lead to regulatory enforcement, union action, reputational harm, and higher turnover.
Get informed – CCF NSW Member Webinar, 18 November 2025
To help members understand their obligations and practical steps to manage psychosocial risks, CCF NSW is hosting a webinar on 18 November 2025. The session will cover:
- Your WHS duties for psychosocial hazards under NSW law
- The latest SafeWork NSW enforcement trends
- Practical tools for identifying, assessing, and controlling psychosocial risks
Don’t wait for a prohibition notice, learn how to proactively manage psychosocial hazards and protect your people and your business.
Register Now for the Member Webinar. Click here to secure your place.