New Year, New Rules: Why Employers Must Update Workplace Policies Ahead of December’s OHS Shake-Up

Employment Law: 07 October 2025

Author: Bianca Mazzarella - Our People

New psychosocial health regulations which will take effect from December 2025 in Victoria are a timely reminder for all employers to get on the front foot and ensure that their workplace policies are up to date and an effective means of preventing, managing and controlling risks associated with psychological hazards in the workplace (including bullying, harassment, violence or exposure to traumatic events).

The new regulations are a welcome addition following the Blisspell Pty Ltd decision in May this year - which reminded employers that psychological safety is not optional and resulted in the toy company being fined $100,000 (plus costs) for failing to provide a safe workplace for its employees.

In this case, it was alleged that the director of the employer made comments and sent text messages to an employee of a sexual and personal nature which had an adverse impact on the employee’s mental health. This resulted in a finding by the Court against the employer due to a failure by the employer to:

• Develop a workplace policy detailing adequate information about acceptable and unacceptable workplace conduct, including sexual harassment;
• Establish a clear policy defining inappropriate and appropriate behaviours and establishing a reporting and response process for employees who experience sexual harassment; and
• Implement an appropriate policy through training managers, supervisors and employees.

Notably, in this case the Court noted that ‘monthly meetings’ or ‘informal chats’ did not count as adequate measures to control inappropriate behavior, specifically where there was a power imbalances.

This case and the imminent new OHS regulations serve as a caution to employers that the consequences of not having or having insufficient or deficient policies or procedures (including if not implemented properly) can be a liability for employers.

What should employers do?

To minimise liability employers should:

• Seek advice as to whether or not employment policies are captured by their employment agreements (can create a contractual obligation on the employer when not intended and expose the employer unnecessarily);
• Seek a review of their policies to ensure they are up to date and contain adequate definitions, procedures and complaint handling processes; and
• Ensure employees are aware of the policies and regularly educated regarding the requirements and are aware of the consequences for failing to comply with the policies.

Bianca Mazzarella, Principal at Aitken Partners is an experienced employment and workplace relations lawyer who can assist with drafting legally effective policies and reviewing policies, in order to reduce potential liability for employers. If you have any enquiries or need assistance drafting your workplace policies, please contact Bianca at bmazzarella@aitken.com.au or on +61 3 8600 6093