Between 2017-2018 and 2020-2021, a significant rise in psychological claims related to anxiety, stress disorders, depression, and post-traumatic stress disorder (PTSD) was observed across various industries in the ACT (Safe Work Australia). This increase may be attributed to a combination of factors, including greater awareness and recognition of mental health issues, improved reporting mechanisms, and potentially worsening workplace conditions that exacerbate stress and psychological strain. These conditions have become a leading cause of workers’ compensation claims in both the private sector and the Australian Capital Territory (ACT), reflecting a growing awareness of mental health challenges in the workplace.
During this period, 688 mental stress-related workers’ compensation claims were accepted. A staggering 43% of these claims were attributed to work-related harassment and workplace bullying, highlighting the importance to address unhealthy work environments (Safe Work Australia). Toxic workplace cultures can have long-lasting effects on employees’ psychological well-being, whether through direct harassment or more subtle forms of exclusion and intimidation. These negative environments contribute to heightened stress, anxiety, and a diminished sense of job satisfaction, ultimately impacting both individual employees, and overall workplace productivity. Addressing these issues requires not only reactive measures, but also proactive strategies that foster inclusivity and psychological safety. Another 24% of claims were due to work pressure, suggesting that excessive workloads and unrealistic expectations play a significant role in deteriorating mental health (Safe Work Australia). These figures reinforce the critical importance of fostering workplaces that balance performance expectations with employee well-being.
One notable trend was the gender disparity in psychological claims. Women were nearly twice as likely to have an accepted psychological claim compared to men, which may reflect both societal and workplace factors, such as gender-based discrimination, caregiving responsibilities outside of work, or the increased likelihood of women working in emotionally demanding professions. This disparity points to the necessity of tailored mental health initiatives that acknowledge and address the unique challenges faced by different employee demographics, ensuring that support systems are equitable and effective.
Industries most affected by these psychological claims included Health and Social Assistance, Administrative and Support Services, and Retail Trade. These sectors are known for their high-pressure environments, where employees frequently deal with emotionally charged situations, long hours, and, in some cases, understaffing. The nature of work in these industries—whether it be caring for vulnerable individuals, handling customer complaints, or managing demanding workloads—can heighten stress levels and increase the risk of burnout. Ensuring adequate support, resources, and staffing in these high-risk sectors is crucial to safeguarding employees’ mental health and preventing long-term consequences.
This data underscores the urgent need for businesses to take a proactive stance on mental health. Organisations must move beyond viewing mental well-being as an individual concern and instead treat it as a fundamental workplace priority. According to Safe Work Australia, under the model Work Health and Safety laws, employers are legally required to manage both physical and psychological hazards, including psychosocial risks that can affect mental well-being in the workplace. Implementing anti-bullying policies, fostering a culture of psychological safety, and ensuring leadership is equipped to support employees are key steps in mitigating workplace stressors. Creating an environment where employees feel valued and supported not only reduces psychological claims, but also enhances overall workplace morale and productivity.
Employers can actively promote mental health by encouraging open dialogue, ensuring easy access to support resources, and equipping staff with the training needed to recognise and address workplace stress and harassment. Implementing flexible work arrangements, establishing stress management programmes, and enforcing a zero-tolerance policy for workplace bullying are essential measures to reduce the frequency of these claims. Additionally, ongoing mental health awareness training for both employees and managers can help identify early warning signs, encourage timely intervention, and cultivate a more empathetic and resilient workforce. At Ascent Rehabilitation, we not only support individuals and workplaces when an injury occurs, but also help businesses take proactive steps to prevent them. If you would like guidance on managing psychosocial risks in your workplace, contact us at 02 6156 4109.
By taking meaningful action, businesses can not only reduce the number of psychological claims, but also create healthier, more supportive workplaces where employees feel empowered to thrive. A strong commitment to mental well-being ultimately benefits both employees and organisations, leading to greater job satisfaction, improved retention rates, and a more positive workplace culture overall.