Victoria workplace mental health claims set to rise

Report proposes 'self-funding' insurance model for export industries

Workplace mental health claims in Victoria are projected to worsen further, doubling at current rates to make up a third of all WorkSafe claims by the end of the decade, the state’s workplace health and safety regulator said today to mark World Mental Health Day.

WorkSafe, which manages the state’s workers’ compensation scheme, says of the 28,682 claims received in the 2021/22 financial year, 4340 were for mental injury.

Work-related mental injuries currently account for 15.1% of all new claims, up from 13.1% in the preceding financial year.

WorkSafe says it expects the proportion of claims for psychological injuries to grow to a third of all claims by the end of this decade.

Executive Director Health and Safety Narelle Beer urged employers to mark World Mental Health Day by making sure they have policies, processes and training in place to address risks such as bullying, aggression, trauma, fatigue, stress and high job demands.

She says mental injuries often needed more recovery time than physical injuries, meaning more time off and higher costs.

Three-quarters of workers with a physical injury are back on the job in six months while only 40% of workers with mental injury return to work within that time.

“Just because a mental injury is harder to see, doesn’t mean it can’t be prevented,” Dr Beer said.

“We’re putting employers on notice that they have a legal obligation to make sure their workplaces are psychologically safe.”

She says employers who fail to take reasonable steps to prevent mental injury can face prosecution under the Occupational Health and Safety Act, including potential fines of up to $332,000 for an individual or $1.66 million for a body corporate.

See also  Zurich introduces climate offering for commercial clients

“Our message to employers is clear, if you turn a blind eye to bullying, harassment, or other psychological health hazards then you’re risking your workers’ safety, lost productivity and potential hefty fines,” Dr Beer said.

WorkSafe will use social media to remind employers of the need to address psychological health hazards at work throughout this month.