Psychological Injury Claims Are Rising

This is an abridgment of article by Mind Your Head

Recent data shows that psychological injury claims in Australia are increasing significantly. This highlights the growing need for organisations to treat mental health with the same level of importance as physical safety.

Psychological injuries, including stress, anxiety and depression, are now among the fastest-growing types of workplace claims. For employers, this is not only a wellbeing issue but also a financial and operational one. Psychological injuries often result in longer time off work, higher claim costs and greater strain on teams compared to many physical injuries.

Why Are Psychological Injury Claims Rising?

A range of workplace factors contribute to the increase in psychological injuries, including:

• High workload pressures and job demands
• Poor role clarity or unclear expectations
• Low levels of support from leaders or teams
• Exposure to traumatic or distressing situations
• Bullying, harassment or ongoing conflict
• Limited control over how work is performed

These risks can build gradually and may go unnoticed until they lead to significant harm.

The Human and Financial Impact

Psychological injury claims are typically more complex than other injury types. They often involve longer recovery periods, higher rehabilitation costs and more intensive case management.

Beyond the financial impact, psychological injuries can significantly affect a person’s quality of life, relationships and long-term health. This flow-on effect can also impact team morale, productivity and retention.

Mental Health Is a Safety Issue

The rise in psychological injury claims reinforces an important message. Mental health is a workplace safety issue.

Focusing only on physical hazards means organisations may overlook risks that affect workers every day. Supporting mental health requires more than awareness campaigns or training sessions. It requires practical action embedded into everyday work systems.

This includes:

• Identifying psychosocial hazards during risk assessments
• Designing work to support sustainable workloads
• Providing clear communication and appropriate supervision
• Encouraging early reporting and intervention
• Reviewing systems that contribute to ongoing stress

What This Means for Workplaces

To effectively manage psychological risks, mental health must be integrated into health and safety frameworks, leadership practices and workplace culture.

Practical steps include:

• Reviewing WHS systems to ensure psychosocial risks are included
• Supporting leaders to recognise early signs of distress
• Implementing controls that address the root causes of stress
• Ensuring workers can access support early

Workplaces that take these steps are better positioned to reduce psychological injury risks while building healthier and more resilient teams.