Overview
Workplace harassment causing psychological injury
Harassment is not one single workers compensation category. Sexual harassment and racial harassment are defined relevant conduct from 1 July 2026; other hostile conduct may need analysis as bullying, violence, excessive work demands or another event.
General information only. It is not legal advice for your individual matter, and past outcomes do not guarantee future results.
How this accident commonly happens
Workplace harassment causing psychological injury can occur through unwelcome sexual conduct and race-based conduct reasonably likely to offend, insult, humiliate or intimidate. The incident history should identify the task, equipment, location and sequence of events rather than relying on the job title alone.
Repeated hostile conduct requiring classification under the correct relevant-event category.
People commonly exposed
People commonly exposed include workers subjected to sexual or racial harassment and workers experiencing repeated hostile conduct that may amount to bullying. Employment records should identify each person's task, employer and position in the work area when the incident occurred.
Workers receiving harassment through workplace communications or off-site work activities.
Common injuries from this accident type
Medical records after a workplace harassment causing psychological injury may identify a diagnosed primary psychological injury where legal criteria are met and physical injury where conduct also involved assault. Each diagnosis should be linked to the event or exposure and to the worker's actual functional change.
Secondary psychological symptoms following physical injury.
Immediate reporting and safety records
After a workplace harassment causing psychological injury, immediate reporting and safety records may include confidential complaint and dated chronology and messages, emails, meeting, roster and witness records. These records can establish what was known at the time without requiring the worker to repeatedly recount a traumatic event.
- Work function, travel or off-site context where relevant.
- Employer investigation and response.
Evidence that may help
For a workplace harassment causing psychological injury, the first evidence to preserve includes the words or conduct and why they fit the alleged category and connection with work and the people involved. It is most useful when dates, people, equipment, duties and later medical histories tell a consistent account.
- Separation of harassment from management action.
- Medical and capacity evidence.
Medical and psychological evidence
Medical and psychological evidence after a workplace harassment causing psychological injury may include diagnosis and event history and functional effect on work, attendance and interaction. A diagnosis alone may not answer causation or capacity: the records should explain the work event, symptoms, treatment and practical restrictions.
- Capacity restrictions concerning person, site and communications.
- Treatment and return-to-work records.
Which psychological-injury pathway applies?
The pathway depends on the event, the injury being claimed, when it was first notified, and the insurer’s stated reasons. Violence, traumatic witnessing and vicarious trauma generally follow the standard pathway after 1 July 2026; bullying, sexual or racial harassment and excessive work demands may engage the relevant-conduct pathway. Section 11A must be considered only where its requirements are actually raised by the facts.
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Bullying, sexual harassment, racial harassment and excessive work demands are defined relevant-conduct categories for primary psychological injuries first notified on or after 1 July 2026. Ordinary conflict or pressure does not automatically meet those definitions.
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A relevant-conduct claim requires a completed claim form and the prescribed minimum information. Provisional liability is not available for that claim type; the insurer instead has a maximum 42-day determination period, with statutory interim entitlements operating under their own rules.
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If the insurer disputes any aspect of a relevant-conduct claim, the worker must first request insurer internal review before applying to the IRC or PIC. The review outcome is due within 14 days of the request.
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After review, a dispute about whether the conduct meets the definition of relevant conduct belongs in the IRC. Other disputed issues belong in the PIC. The IRC determines only the conduct classification and does not decide the whole workers compensation claim.
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If an insurer says it lacks enough information to decide whether relevant conduct occurred, that is not the same as a determination that the conduct was not relevant conduct; the applicable PIC or IRC pathway must be identified from the actual review reasons.
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Amended section 11A may also be raised. It excludes compensation if the psychological injury was predominantly caused by reasonable management action taken or proposed, or the worker’s expectation or perception of it. The action must be reasonable in all the circumstances and taken in a reasonable way. The precise action, manner and causation must be proved rather than assumed.
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The post-1 July 2026 psychological-injury rules described here do not apply to exempt workers (police officers, paramedics and firefighters), coal miners, volunteers, dust-disease claims, primary psychological injuries notified before 1 July 2026, or secondary psychological injuries. Those matters require the earlier or otherwise applicable rules to be identified before advice is given.
Common insurer disputes
After a workplace harassment causing psychological injury, an insurer may dispute the conduct is denied or said not to meet a defined category and the insurer uses a generic “interpersonal conflict” label. The written decision should be answered with evidence directed to those stated reasons.
Main contributing factor or diagnosis is disputed.
The IRC relevant-conduct pathway may be required after internal review.
Treatment, rehabilitation, and surgery issues
Diagnosis and event history. Functional effect on work, attendance and interaction. If treatment is disputed after a workplace harassment causing psychological injury, the request should explain the accepted diagnosis, expected functional benefit and reasonable alternatives.
Capacity restrictions concerning person, site and communications.
Treatment and return-to-work records.
Treatment may include physical care, psychology, psychiatry, medication review or rehabilitation depending on the diagnosed injury. Approval depends on causation, reasonable necessity and the insurer decision; it is not automatic.
Weekly payments and work capacity
Work capacity after a workplace harassment causing psychological injury may turn on safe separation and reporting arrangements and meetings, communication channels and work location. Proposed duties must be compared with the real task demands and the worker's ability to sustain them for the proposed hours.
Concentration, sleep and reliable attendance.
Permanent impairment and lump sum issues
A lasting physical injury is assessed under the NSW method for the affected body system only after the condition is sufficiently stable. The event label does not predict a WPI percentage. Primary psychological impairment is assessed separately under the NSW psychiatric impairment method when the condition is permanent and the legal pathway is established. Diagnosis alone does not determine WPI. Any WPI assessment after a workplace harassment causing psychological injury occurs after stabilisation under the NSW method for the accepted body system; the accident or surgery alone does not determine a percentage.
Secondary psychological impairment is not assessed for WPI in NSW workers compensation. Physical and primary psychological impairment are also not combined for section 66 compensation.
From 1 July 2026, most workers generally have one principal permanent impairment assessment per injury, subject to limited further-assessment rules. Independent advice should be obtained before an assessment.
Primary and secondary psychological injury
A primary psychological injury is the psychological condition said to arise directly from workplace events. For claims first notified on or after 1 July 2026, the event must fit a relevant-event category and satisfy the additional connection and causation requirements. A secondary psychological injury arises as a consequence of a physical injury, for example depression associated with pain, surgery or loss of mobility after an assault injury. The 2026 primary-injury reforms do not apply to secondary psychological injuries in the same way. The distinction depends on medical causation and the accepted injury history, not simply on which symptoms were noticed first.
NSW permanent impairment law assesses primary psychological impairment separately from physical impairment. Secondary psychological impairment is not assessed for WPI, and the physical and primary psychological percentages are not combined for section 66 compensation.
On this page, the practical distinction depends on whether the psychological condition followed unwelcome sexual conduct directly, or developed because of a physical injury and its consequences. Medical evidence should address that distinction rather than assume it from timing alone.
Other claim pathways that may need investigation
A police, SafeWork, workplace, discrimination, Fair Work or protective-order process may exist alongside workers compensation. Those processes have different purposes and do not decide workers compensation automatically. A civil, victims-support or other claim may require separate advice depending on the person involved and circumstances. It should not be described as part of workers compensation without checking eligibility. These issues are separate from workers compensation and depend on the particular facts.
If an internal review continues to dispute whether alleged bullying, sexual or racial harassment or excessive work demands were relevant conduct, the IRC certificate pathway may need to be considered before the remaining PIC dispute.
Hypothetical example
Illustration: harassment across messages and meetings
Facts
A worker reports repeated race-based remarks in meetings and messages, then develops a diagnosed psychological condition.
Questions to investigate
- preserve the exact conduct and context
- identify whether it meets the racial-harassment definition
- follow the relevant-conduct claim and review process without assuming liability
Why the result cannot be assumed
This is a hypothetical illustration of the evidence questions, not a prediction of liability, funding, compensation or outcome. Small factual changes can alter the legal analysis.
How NSW Work Injury Claim can help
For a workplace harassment causing psychological injury, assistance may involve identify the event category, incident date and claim pathway before responding to an insurer and organise incident, safety, medical, psychological and capacity evidence without circulating unnecessary private material. The purpose is to identify the disputed decision and the evidence needed for the next step, not to promise an outcome.
Review weekly-payment, treatment, work-capacity, section 11A and permanent-impairment issues on their own evidence.
Prepare a clear chronology and identify the next practical review or dispute step.
Common questions about workplace harassment causing psychological injury claims
Does workplace harassment injury automatically create a workers compensation claim?
No. The incident, employment connection, diagnosed injury, causation and incapacity must be supported. For a primary psychological injury first notified on or after 1 July 2026, the relevant-event, real-and-direct-connection and main-contributing-factor requirements also matter.
Can a threat count if there was no physical contact?
A threat of violence can be a relevant event, but the facts and medical evidence still matter. The original message, call, witness, incident report and safety response may be important.
What is the difference between a primary and secondary psychological injury?
A primary psychological injury is said to arise directly from workplace events. A secondary psychological injury arises as a consequence of a physical injury. The claim rules and permanent-impairment treatment are not the same.
What if the insurer relies on section 11A?
For the post-1 July 2026 provision, the insurer must identify reasonable management action taken or proposed, or the worker’s expectation or perception of it, and establish that the psychological injury was predominantly caused by it. The action must be reasonable in all the circumstances and taken in a reasonable way. Violence or other conduct should not automatically be treated as management action.
What evidence should be preserved first?
Preserve the original incident and safety records promptly. Depending on the event, that can include confidential complaint and dated chronology, messages, emails, meeting, roster and witness records, work function, travel or off-site context where relevant. Medical and capacity records should separately identify the diagnosed injuries and functional effects.
Can the event affect weekly payments, treatment or WPI?
It can, depending on the accepted injury and evidence. Weekly payments depend on incapacity and earnings; treatment depends on the statutory test and medical support; WPI is assessed only under the applicable NSW method and should not be predicted from the event alone.
Need help after a NSW workplace accident?
If you have an insurer decision, unclear capacity certificate or treatment dispute after a workplace accident, we can help identify the issue and organise the evidence. Where ILARS funding is approved, eligible legal costs and necessary disbursements may be covered.
Related injury guides
Related accident mechanisms
Later or multiple conditions after the incident
Related NSW workers compensation guides
Official sources
- SIRA: psychological injury claims for workers and employers
- SIRA: current psychological injury guidance for insurers
- SIRA: workers compensation reforms for injured workers from 1 July 2026
- SafeWork NSW: work-related violence
- Workers Compensation Act 1987 (NSW), including section 11A and Part 3
- NSW Industrial Relations Commission: workplace conduct proceedings
- SafeWork NSW: psychosocial hazards
- SIRA: NSW workers compensation permanent impairment guidelines
Last reviewed: 19 July 2026