17 July 2025 posted by Recovery Partners

As the nature of work and societal influences continue to evolve, supporting employee mental health can no longer be ignored. As a responsible employer, creating and fostering a supportive workplace that prioritises psychological health and wellbeing is not only necessary but in some cases is a legal obligation. Psychological injuries in the workplace are on the rise, accounting for 9% of all serious workers’ compensation claims in 2021-22, and a 36.9% increase since 2017-18. This growth is more than two times the rate of increase for all serious claims. Safe Work Australia data highlights a growing trend in mental health claims. Without early psychological intervention, organisations may face longer recovery periods and higher costs. Early psychological intervention can help to change the outcome of growing mental health related claims, but only if the contributing factors are recognised and addressed early.

The Impact of Mental Health Conditions on Workplaces
 

Mental health conditions can have a significant impact on the workplace, not only for the individual experiencing these challenges, but also for the wider team. A workplace that doesn’t protect its workers’ mental health can influence team dynamics, productivity, culture, and financial performance. For a long time, the way businesses focused on supporting their workers was largely through initiatives that helped to improve their physical health. However, data shows that comparatively psychosocial injuries are rising at a higher rate than physical injury claims.

In 2021-22, Safe Work Australia reported that for workers with mental health conditions, there was an average loss of 34.2 working weeks per serious claim. This was over four times longer than the average 8 weeks for all other injuries and illnesses. Additionally, the median compensation paid for mental health conditions was $58,615 per serious claim which is significantly higher than the $15,743 per serious claim for all injuries and diseases. Data also shows that there is a substantial impact on return-to-work outcomes. Not only has there been an increase in mental health related claims but compared to claims for other reasons there has been poorer RTW outcomes. Mental health conditions that are left untreated can in some cases escalate to chronic conditions or cause secondary psychological injuries.

The industry with the largest proportion of serious claims for work-related mental health conditions over this period were health care and social assistance. There was also a large increase in claims made in the public administration and safety industries.

Statistics on the number of serious claims for mental health conditions by industry

Source

What causes psychological injuries at work?
 

According to Safe Work Australia, the following psychosocial hazards were the biggest contributors to serious mental health claims.

Work Pressure and Burnout

High job demands without adequate support or resources can eventuate into prolonged stress and eventual burnout.

This could include:

  • An excessive workload.
  • Unrealistic deadlines.
  • Long hours.
  • Lack of support.
  • Constant changing of priorities.

Workplace Bullying and Harassment

Ongoing negative behaviours in the workplace can have a significant impact on an individual’s mental health.

This may include:

  • Persistent bullying.
  • Being excluded or isolated by colleagues.
  • Unfair treatment.
  • Harassment (verbal, physical, sexual and/or psychological).

Exposure to Trauma or Violence

Frequent or intense exposure to traumatic or violent situations can result in lasting psychological harm.

This can include:

  • Witnessing traumatic or violent events.
  • Verbal or physical abuse from clients, patients or customers.
  • Supporting vulnerable individuals.

Other psychosocial hazards that can impact workplaces are:

  • Low job control.
  • Lack of role clarity.
  • Poor environment.
  • Job demands.
  • Poor support.
  • Inadequate recognition.
  • Poor relationships.
  • Isolated work.
Why Early Psychological Intervention Makes a Difference
 

Early intervention for psychological injuries is vital in supporting a worker’s health and wellbeing. Adopting early intervention strategies can:

  • Improve return to work outcomes.
  • Reduce time lost and likelihood of further absences.
  • Create a positive work environment and employee perception of the workplace.
  • Reduce the cost of incapacity, recruitment and training costs.

The benefits of early psychological intervention in a workplace include:

  • Reduced time off work.
  • Prevention of conditions worsening.
  • Better coordination with employers and nominated treating teams.
  • Lower costs and improved return to work outcomes.
Practical Steps for Employers and Management
 

For workplaces that are experiencing a higher rate of mental health claims or are looking to mitigate the risk of psychological injuries, consider implementing the following workplace initiatives:

Want to find out more?

 

Our services are available nationwide. Our consultants love to have a chat, so go ahead and give us a call on 1300 OHS RTW (647 789) or email enquiries@rrp.com.au

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Disclaimer – these articles are provided to supply general safety information to people responsible for OHS in their organisation. They are general in nature and do not substitute for legal and/or professional advice. We always suggest that organisations obtain information specific to their needs. Additional information can be found at https://www.safeworkaustralia.gov.au/