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Psychosocial risks vs. psychological safety: Understanding the overlap and the legal context

Attention to employee wellbeing and organisational culture has brought two important concepts into focus in recent years - psychosocial risks and psychological safety. While they are closely related, and commonly confused with each other, the two concepts describe different aspects of the work environment. Below is an overview of the key differences and similarities between the two.


Psychosocial Risks


Psychosocial risks or psychosocial hazards refer to workplace conditions that may harm employees’ mental health, wellbeing, or overall functioning. ISO defines psychosocial risks as a “combination of the likelihood of occurrence of exposure to work-related hazard(s) of a psychosocial nature and the severity of injury and ill-health that can be caused by these hazards” (ISO 45003, 2021).


These risks can include high job demands, lack of control over work, bullying or harassment, poor organisational support, or job insecurity. Left unaddressed, psychosocial risks can lead to stress, burnout, anxiety, and reduced productivity. In essence, they are hazards that organisations must identify and manage, much like physical risks addressed by the wider known Occupational health and safety management requirements (ISO 45001, 2018).


The importance of addressing these risks is reflected in the ISO 45003:2021 standard, the world’s first international guideline on managing psychosocial risk within an occupational health and safety (OH&S) management system. Developed as a complement to ISO 45001, ISO 45003 sets out practical frameworks for identifying psychosocial hazards, engaging workers, implementing controls, and continuously improving workplace mental health. It emphasizes not only preventing harm but also enhancing wellbeing, performance, and engagement.


Psychosocial risks are factors in the workplace that may cause psychological or physical harm. They can arise from,


  • Work design: Long working hours, heavy or unmanageable workloads, low job control, lack of role clarity, boring or repetitive tasks, and over-reliance on technology.

  • Social factors at work: Interpersonal relationships, workplace interactions, and behaviours.

  • Work environment: The physical and social environment in which work is performed, including equipment and hazardous tasks.


Exposure to these hazards can lead to serious health impacts such as mental illness, anxiety, depression, fatigue, burnout, cardiovascular disease, and musculoskeletal disorders. It can also cause social harm such as substance use/abuse and conflict between work and family life.


In New Zealand, under the Health and Safety at Work Act 2015 (HSWA), the definition of health includes both physical and mental health. This means that Persons Conducting a Business or Undertaking (PCBUs) have a legal duty to eliminate or minimize psychosocial risks so far as is reasonably practicable. WorkSafe New Zealand has issued guidance requiring organizations to proactively manage stressors such as excessive workloads, bullying, poor communication, and role conflict. Failure to act has led to legal action, with cases like Wiles v University of Auckland highlighting employers’ obligations to protect staff from foreseeable psychological harm.


In other words, under the HSWA workplaces must


  • Identify and assess psychosocial risks in the workplace.

  • Eliminate or minimise these risks so far as is reasonably practicable.

  • Consult with workers when making decisions about how to manage health and safety risks related to their work.


Where then, does psychological safety fit it?


Psychological Safety


Psychological safety, on the other hand, is a positive cultural condition. It describes a shared belief among team members that it is safe to speak up, share ideas, admit mistakes, or raise concerns without fear of embarrassment, punishment, or exclusion (Edmondson, 1999; Kahn, 1990). Psychological safety fosters learning, innovation, and collaboration by creating an environment where people feel valued and respected. While ISO 45003 and HSWA focus on risk identification and compliance, psychological safety speaks to the human experience within the workplace. It is less about preventing harm and more about creating an environment where people can thrive.


A high level of psychological safety in a workplace means that employees feel respected, valued, and able to speak up without fear of judgment or retaliation. It is an environment where mistakes are treated as learning opportunities, diverse perspectives are welcomed, and open communication is encouraged. Leaders model trust and vulnerability, support mental well-being, and provide constructive feedback, while team members collaborate with respect and fairness. In such a culture, people are empowered to contribute ideas, take calculated risks, and grow both personally and professionally.


Overlap and Integration


Despite their differences, the two concepts are interconnected. Both center on the quality of workplace interactions and conditions. When psychosocial risks are high (for example, in a culture of blame, excessive workload, or bullying) psychological safety is often low. Conversely, when organisations actively cultivate psychological safety, they also help mitigate psychosocial risks, since employees feel supported, respected, and heard.


The ISO 45003 standard provides a structured framework for reducing psychosocial risks, while legislation like New Zealand’s HSWA makes it clear that failure to manage them is not only a cultural issue but also a compliance risk. Embedding psychological safety into workplace culture strengthens both outcomes, ensuring legal obligations are met while creating conditions for trust, innovation, and resilience.


Together, they point toward a single truth: creating healthy, high-performing workplaces requires both compliance with psychosocial risk management standards and an intentional focus on fostering psychological safety.


Further resources


For more detailed information, you can refer to the following resources:



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