UTS schooled by SafeWork NSW: the restructuring lesson every employer must learn

Restructuring an organisation is never an easy task, but it’s crucial to approach it with care and consideration, especially when it comes to the mental wellbeing of your staff. Mishandling redundancies or organisational changes can lead to a ripple effect of fear, uncertainty, and anxiety among employees, ultimately damaging morale, productivity, and trust. A recent case involving the University of Technology Sydney (UTS) serves as a cautionary tale of what can go wrong. Their poorly managed restructure led to such significant issues that SafeWork NSW had to step in.

In this article, we’ll unpack the details of the UTS case, explore its implications for employers, and provide a roadmap for navigating organisational change with your team’s wellbeing in mind.

What happened?

UTS recently faced an unusual intervention by SafeWork NSW, which ordered the institution to pause its restructure plans due to a “serious and imminent risk of psychological harm” to staff. Hundreds of employees were left in limbo while the restructure was halted, meetings were cancelled, and staff reported a “culture of fear” linked to uncertainty and job insecurity.

After consultation with health and safety representatives and adjustments to communication processes, the prohibition notice was lifted, allowing UTS to proceed with its restructure.

What this means for employers

This case highlights that psychological health is as much a WHS issue as physical safety. Regulators will intervene if poor consultation, communication, or change management practices create risks of stress, anxiety, or other psychosocial harm. Employers can’t assume that financial or strategic decisions sit outside WHS obligations. The process of managing those changes must still protect worker wellbeing.

What should employers consider during organisational change?

Employers must actively manage psychosocial risks during periods of significant organisational change. This can include:

• Conducting risk assessments to identify stress factors associated with restructures, redundancies, or job redesign.
• Implementing consultation processes that give workers a genuine voice in the change process (this is not only an obligation arising under modern awards but a safety obligation).
• Providing access to support services such as Employee Assistance Programs (EAP) and wellbeing initiatives.
• Ensuring leaders are trained in psychosocial risk management and equipped to respond appropriately to worker concerns.

What steps should employers take?

1. Consult early, consult often: transparency and two-way communication reduces fear and mistrust.

1. Document control: keep clear records of risk assessments, staff consultations, and control measures implemented. An audit trail is critical if regulators scrutinise decisions.
2. Balance legal, financial, and human factors: even when difficult business decisions must be made, the process must minimise psychological harm.
3. Monitor ongoing impacts: after a company implements a restructure or makes major changes, continue to check in with staff and review the effectiveness of control measures. Don’t expect that everyone is fine with this change.

This case sends a clear signal that SafeWork regulators are prepared to intervene on psychosocial grounds. For employers, it reinforces that managing mental health risks during organisational change isn’t optional – it’s a legal obligation under WHS law.

Practical steps to manage psychosocial risks

While large organisations like UTS often make the headlines, SMEs are equally bound by WHS laws, and are often more vulnerable because they lack big HR teams or in-house safety specialists. Here are some practical, low-cost actions small to medium businesses can take:

1. Consultation and communication

• Hold regular toolbox talks or team meetings to explain upcoming changes and invite feedback.
• Use simple methods (surveys, check-ins, open forums) to gather staff input.
• Keep communication honest. Uncertainty breeds more stress than clear, even if difficult, information.

2. Risk assessment during change

• When planning restructures, rostering changes, or new systems, complete a short psychosocial risk assessment.
• Identify key risks: workload increases, role insecurity, loss of job clarity.
• Document these risks and agree on controls before rolling out changes.

3. Support systems

• Provide staff with access to Employee Assistance Programs (EAP) affordable SME-focused options are available.
• Train at least one manager or supervisor in Mental Health First Aid to act as a first point of contact.
• Build in “pre- and post-shift check-ins” during stressful periods.

4. Leadership and training

• Equip managers with basic training in psychosocial hazard awareness.
• Encourage supportive leadership: acknowledge stress, validate concerns, and set realistic workloads.

5. Monitoring and review

• Keep a simple record of staff consultations, decisions, and actions as this demonstrates compliance if challenged.
• After changes, schedule a review meeting to ask: Have risks reduced? Do we need to adjust controls?

Citation Safety can help

Citation Safety has created a unique suite of psychosocial risk management services, Psychosocial Hazard Management, specifically designed to assist businesses that lack the in-house expertise or resources to meet Australia’s stringent WHS laws and employer obligations. With our support, you can have peace of mind knowing your business is compliant and not at risk.

Backed by industry-leading safety experts, these services can aid organisations in meeting WHS obligations and implementing best-practice processes to avoid work-related injuries and illnesses. The team at Citation Safety is ready and waiting to support your business. Contact our friendly team to schedule a confidential, no-obligation chat.

About our author

Jack Bowkett is a Workplace Health and Safety Consultant at Citation Group. He has an interest in all things safety-related and regularly provides pragmatic advice on how businesses can comply with their WHS obligations and create a good working environment.