Victoria’s New Psychological Health Regulations: What the New Regulations mean for Leaders in approaching Performance Conversations

Victoria is set to introduce new Occupational Health and Safety (Psychological Health) Regulations, anticipated to come into effect on 1 December 2025. These regulations place the importance of psychological health on equal footing with physical safety in the workplace, aligning Victoria with other Australian jurisdictions that have already implemented similar measures.

For leaders, these new regulations are not just a policy change – they require a mindset shift. With the increasing emphasis on health and wellbeing in the workplace, leaders must approach performance conversations with greater care, balancing accountability with empathy, and ensuring discussions are conducted in a way that supports employee mental health, as well as professional development.

Too often, performance conversations are treated like a checklist. But they’re actually important tools that a leader has at their disposal to support wellbeing and identify hazards early in the workplace.

The upcoming regulations are being introduced in response to the Boland Review, the Royal Commission into Victoria’s Mental Health System, and the Productivity Commission Inquiry into Mental Health. These reviews highlighted the need for greater management of psychosocial hazards in the workplace, and the new regulations are attempting to address that need in Victoria and align with regulations introduced in other Australian states and territories.

In addition to the regulations, the government has indicated a plan to release a supporting Compliance Code which will assist employers in fulfilling their duties under the new regulations. The draft regulations also indicate that employers with 50 or more employees will likely be required to report any psychosocial complaints they receive to WorkSafe Victoria.

While the regulations are not expected to mandate prevention plans, they will strongly promote them. A structured plan gives leaders a framework to assess risks and implement meaningful control measures. It also offers one of the clearest ways to demonstrate that your organisation is doing the work – not just reacting when harm occurs.

It’s a bit ironic – performance conversations should be one of the most effective tools leaders have to support people, shape culture and tackle psychosocial hazards effectively. But too often, they fall flat.

Most of us can remember a performance review that felt more like a box-ticking exercise. The leader was distracted. Potentially reading off a template. Maybe you were hoping to be offered additional support, or recognition for your hard work. Possibly, you were waiting for them to give you meaningful, constructive feedback to help you improve in your role that never came.

Honestly – these conversations can be so much more.

They offer leaders an opportunity to understand the wellbeing of employees and gain insight into how each individual experiences the workplace. Importantly, they allow leaders to identify psychosocial hazards that may be more hidden; or maybe the psychosocial hazard was right in front of their face all along, and they only noticed it after a conversation with an employee.

Done well, these conversations can clarify expectations, promote support and provide an opportunity for leaders to identify and manage psychosocial risks. When done badly, performance reviews can do more harm than good and can even become the hazard you’re trying to prevent.

• Educate yourself on psychosocial risks: In preparation of the new regulations, leaders should take steps to educate themselves on the regulations. Psychosocial hazards are currently a strong buzz word, but they are quite complex and require leaders to have both the knowledge and skills to bring them to light in performance conversations. Therefore, it is important that leaders stay informed and keep up to date with WorkSafe Victoria regarding the finalisation and implementation of the regulations.
• Reframe how you view performance conversations: Performance conversations should not solely be focused on tangible business objectives; rather, leaders should take these opportunities to engage with employees about their workplace experience and wellbeing.
• Normalise wellbeing as part of performance conversations: Regularly including wellbeing check-ins within performance discussions helps embed it as a natural and valued part of the conversation. These conversations provide a private space for leaders to check in on how employees are coping, fostering a culture of care and psychological safety. By asking open, respectful questions, leaders can create a culture where employees feel comfortable sharing concerns, knowing their wellbeing is genuinely valued.
• Listen actively: If an employee takes the opportunity to raise a psychosocial hazard within a performance conversation, whether directly or subtly, it is essential that leaders respond with clear, genuine acknowledgement. Demonstrating that the concern is taken seriously, and committing to action, builds trust and promotes psychological safety in the workplace.

If you’re feeling uncertain on how to approach these conversations, particularly when more sensitive topics such as mental health are raised, you’re not alone. But leaning into these conversations is essential for both compliance and care. Because ultimately, how you show up in these conversations, especially when they’re difficult conversations, shapes and defines both your culture and who you are as a leader.

We know that navigating performance discussions can feel challenging – and when a team member is facing mental health concerns or personal pressures, approaching these conversations requires even greater care and understanding. During our one-day workshop, Balancing Performance Conversations & Mental Health, leaders build practical skills to hold these important discussions with both confidence and compassion. Join us to strengthen your leadership toolkit and foster workplace conversations that support both performance and well-being.

We’re excited to bring Mapien’s workshop to Melbourne in June.

🧠 MELBOURNE WORKSHOP

📅  Wednesday 4th June 2025

⏲️  Full day (9am – 4:30pm)

🔗 Register here: https://events.humanitix.com/melbourne-2025-performance-conversations-workshops

For more information or if you’re interested to learn more about our upcoming workshop, please contact us and a workplace strategist will be in touch!