SafeWork NSW halts UTS job cuts over psychosocial harm concerns – a sign of things to come
- Scott Montgomery
- Oct 12
- 1 min read
In an unprecedented move, SafeWork NSW temporarily stopped the University of Technology Sydney’s (UTS) redundancy process after determining that staff were at serious and imminent risk of psychological harm.
Traditionally, prohibition notices are reserved for physical hazards, such as unsafe scaffolding or electrical risks, not HR-led organisational change.
But this action marks a major shift in how regulators are now viewing psychosocial hazards under WHS laws.
According to legal experts, SafeWork NSW’s intervention stemmed from concerns about unexpected meeting invitations, the use of finalistic language and a lack of genuine consultation with impacted workers.
While the notice has since been lifted following corrective action by UTS, it sends a clear message:
“Regulators are now enforcing psychosocial risk obligations with the same seriousness as physical safety.”
With most jurisdictions now embedding psychosocial risk management into WHS legislation and with SafeWork NSW increasing its dedicated inspectorate and funding, the expectation for proactive risk control is higher than ever.
This case reinforces that HR and WHS can no longer work in silos. Major organisational change, redundancies or investigations must be approached through both a people and safety lens with structured consultation, communication, and control measures designed to prevent psychological harm.
At Vitalshield, we help organisations navigate this evolving space by integrating WHS and HR perspectives to ensure compliance and care, protecting both people and performance.
Book a free desktop WHS gap analysis for your organisation (under 500 employees) and learn how to build a proactive, compliant approach to psychological health and safety.
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