Home › Resources › Workplace bullying and psychological injury
Workplace bullying and psychological injury claims in NSW
Clinically reviewed by Matt Semsar, Registered Psychologist · AHPRA: PSY0002620326 · SIRA Provider No. 24705 · Reviewed 20 August 2026
The key point: NSW Workers Compensation rules for primary psychological injuries changed from 1 July 2026. For injuries first notified from that date, bullying is specifically recognised as one form of relevant conduct, alongside sexual harassment, racial harassment and excessive work demands. A claim involving relevant conduct follows a different process from some other psychological injury claims. This page explains the general framework and the psychological support side; it is not legal advice.
Psychological injury related to workplace bullying can develop gradually. A person may become increasingly anxious before work, lose confidence, replay interactions, feel constantly on guard, withdraw from colleagues or struggle to switch off outside working hours. These reactions can become clinically significant even when there was no single dramatic incident.
What changed in NSW from 1 July 2026?
New eligibility and claims-process rules apply to primary psychological injuries first notified on or after 1 July 2026. Under the current SIRA framework, a primary psychological injury must be caused by a defined relevant event or series of relevant events, have a real and direct connection to employment, and have employment as the main contributing factor.
Relevant events include several different categories. Where the alleged cause is bullying, sexual harassment, racial harassment or excessive work demands, SIRA describes this as relevant conduct and a different claims pathway applies. Other relevant events include acts or threats of violence, serious criminal conduct, witnessing traumatic incidents, vicarious trauma and the death of a person in the worker's care.
Important: The new primary psychological injury rules do not apply in the same way to every claim. SIRA states that they do not apply to primary psychological injuries notified before 1 July 2026, and the new primary-injury criteria do not apply to secondary psychological injuries arising because of a physical injury. Exempt worker categories can also have different rules.
What does “relevant conduct” mean?
In the current NSW scheme, relevant conduct is a defined workers compensation term. It refers to bullying, sexual harassment, racial harassment or excessive work demands. It is narrower than everyday expressions such as “a toxic workplace” or “work stress”. A workplace can feel extremely distressing without automatically meeting the statutory criteria for a compensable primary psychological injury.
That distinction is one reason the clinical and claims questions should be kept separate. A psychologist can assess symptoms, diagnosis, functioning and treatment needs. Whether the facts satisfy the legal requirements of a workers compensation claim is a decision for the insurer and, where needed, the relevant legal or dispute-resolution process.
The psychological impact of bullying
Repeated interpersonal threat, humiliation or uncertainty at work can affect both mood and threat perception. Common difficulties can include anxiety, low mood, reduced self-confidence, sleep disturbance, rumination, irritability, avoidance of workplace reminders and heightened alertness around emails, meetings, supervisors or colleagues.
Not everyone exposed to bullying develops a mental health disorder, and the presence of distress does not by itself determine whether a workers compensation claim will be accepted. Clinical assessment focuses on what symptoms are occurring, how severe and persistent they are, how they affect functioning and what treatment is indicated.
Can treatment start while the claim is being assessed?
Depending on the type and timing of the claim, interim medical or treatment support may be available while liability is being determined. The exact pathway is not identical for every psychological injury claim, particularly under the post-1 July 2026 rules. Your treating doctor and insurer can clarify what is available in your circumstances.
From a clinical perspective, early support can still be useful even when the administrative position is unsettled. Treatment may focus on sleep and routine, managing physiological arousal, reducing unhelpful avoidance, rebuilding confidence, addressing trauma-related symptoms where present and helping the person maintain meaningful activity outside the claim process.
Psychological treatment is not an investigation of the workplace
Therapy is not a substitute for a workplace investigation, legal advice or an insurer's liability decision. The psychologist's role is to assess and treat the person's psychological presentation. This distinction can be especially important in bullying-related matters, where the worker may understandably feel pressure to repeatedly prove or explain what happened.
Treatment can acknowledge the person's experience without turning every therapy session into a reconstruction of the claim. Recovery also requires attention to sleep, relationships, daily structure, activity, confidence and the person's life outside the dispute.
Current SIRA information
Because these reforms are recent, scheme details should be checked against current SIRA information rather than relying on older web articles. SIRA's current guidance explains the relevant-event requirements, the separate relevant-conduct pathway and which claims are outside the new primary psychological injury criteria.
Frequently asked questions
For primary psychological injuries first notified from 1 July 2026, NSW has specific eligibility and claims-process requirements. Bullying is one form of relevant conduct under the scheme. Whether a particular claim meets those requirements is a legal and claims decision; psychological treatment and support can be discussed separately with your treating doctor and insurer.
Treatment or interim medical support may be available while some psychological injury claims are being assessed, but the pathway depends on the type of claim, when it was notified and insurer requirements. Ask your treating doctor and insurer what applies to your situation.
Yes. NSW introduced specific rules for primary psychological injuries first notified from 1 July 2026, including a separate process for injuries caused by relevant conduct such as bullying, sexual harassment, racial harassment or excessive work demands. Secondary psychological injuries arising from a physical injury are treated differently under these reforms.
Related
Make an enquiry
If you have questions about psychological support relating to a workplace bullying claim, please call or email directly.
This is general information for people in NSW, not legal advice or a determination about whether a particular workers compensation claim will be accepted. Workers Compensation rules can depend on the type of injury, when it was notified and individual circumstances. Check current SIRA information and discuss your own situation with your insurer, treating doctor or legal adviser where appropriate.