WHS Law Reform in NSW: 10-Year Jail Penalties for Safety Breaches
On 1 July 2024, major changes to the NSW Work Health and Safety Act 2011 came into effect, lifting the maximum prison sentence for a Category 1 WHS offence from 5 to 10 years. This legislative change sends a clear message to company directors, officers, and business owners across New South Wales: workplace safety — including psychological health and sexual harassment prevention — is not optional.
These changes are relevant to anyone searching for information about WHS obligations, psychological hazards at work, and director responsibilities under NSW safety law.
What Is a Category 1 WHS Offence in NSW?
A Category 1 offence under the WHS Act occurs when a person:
- Recklessly exposes workers or others to the risk of death, serious injury, or serious illness, and
- Has no reasonable excuse for doing so.
Updated Penalties from 1 July 2024
Person Liable Maximum Penalty
- Individual (e.g. director or officer) Up to 10 years in prison and/or a $2.16 million fine
- Corporation (PCBU) Up to $10.4 million fine
These are the toughest WHS penalties in Australia and represent a significant increase in personal risk for directors and senior leaders.
Why Psychological Hazards Are Now a WHS Priority
Psychological injuries are now treated as seriously as physical injuries under the law. This includes:
- Work-related stress and burnout
- Workplace bullying and harassment
- Fatigue, anxiety and mental health risks
- Sexual harassment in the workplace
If you’re looking for NSW WHS laws about psychological risks or how to comply with psychosocial hazard codes of practice, be aware: SafeWork NSW and Safe Work Australia both now mandate that PCBUs must identify and manage psychosocial hazards in the workplace.
Failing to do so may result in prosecution under the Work Health and Safety Act 2011, particularly if workers suffer serious harm as a result.
Sexual Harassment Is a Workplace Safety Risk
Under the Respect@Work reforms, employers and officers now have a positive duty to eliminate sexual harassment in the workplace.
Directors must ensure:
- Preventative sexual harassment training is provided (not just online modules)
- Complaints are taken seriously and investigated properly
- Leadership sets the tone for psychologically safe work environments
Looking for sexual harassment laws in Australia 2024 or trying to understand your Employer responsibilities | SafeWork NSW? Be aware that failing to address known risks can now expose leaders to personal prosecution under both the Sex Discrimination Act and the WHS Act.
Your WHS Due Diligence Duties as a Director
Section 27 of the NSW WHS Act imposes due diligence obligations on officers. This includes the requirement to:
- Understand WHS risks, including mental health and psychosocial risks
- Ensure the business has suitable processes in place to identify and eliminate hazards
- Verify compliance and support a positive safety culture
Googling “director WHS duties in NSW”? Know that directors cannot delegate this responsibility. You must take proactive, ongoing steps — or risk facing criminal prosecution and civil penalties.
Practical Support for Employers and HR Managers
At ER Focus, we provide WHS compliance support, psychosocial risk assessments, and sexual harassment prevention training to help businesses meet their legal obligations under the updated laws.
We specialise in:
- Independent workplace investigations into bullying or harassment
- Executive and director training on WHS duties and psychological safety
- Supporting HR managers to build better reporting frameworks
- Helping employers avoid WHS and discrimination claims
Unlike law firms, we are experienced HR professionals who offer practical, cost-effective advice. If legal action is required, we partner with employment lawyers to deliver seamless support.
FREE DOWNLOAD: Director’s Checklist for WHS and Psychological Safety
RespectAtWork_Employer_Checklist_ERFocus
Use this one-pager to assess whether your organisation is meeting its legal obligations under the NSW WHS Act 2011, especially on psychological hazards and sexual harassment risks.
Final Word
If you’re a director, officer, HR manager or business owner in NSW, the message is clear: you can now go to jail if your workplace recklessly puts workers at risk — including psychological risk. Don’t wait for a complaint, claim or prosecution.
Take meaningful action today to comply with the new WHS laws, protect your workforce, and safeguard your own position.
Disclaimer:
This blog provides general information only and does not constitute legal or professional advice. While care has been taken to ensure accuracy at the time of publication, workplace laws and obligations can change. Readers are encouraged to seek independent advice specific to their circumstances. ER Focus can assist with practical WHS and HR compliance support and refer matters to legal professionals where appropriate.