From oversight to foresight: Modern WHS governance for boards and the psychosocial challenge
By Megan Kavanagh, Leanne Dearlove and Amelie Golds
Recent case law confirms boards must actively manage psychosocial safety, with passive oversight exposing directors to significant personal liability risks.
In brief
Boards will fall into error where they take a passive approach to discharging their due diligence obligation, as was confirmed in Swan v Monash Law Book Co-operative [2013] VSC 326 and Australian Securities and Investments Commission v Bekier (Liability Judgment) [2026] FCA 196. These cases illustrate the active and positive duty board members hold to monitor safe working conditions and implement change, as far as reasonably practicable. Failure to do so may create personal liability, including significant fines and potential imprisonment. With the increase in psychological injury claims, boards need to be looking beyond slips and trips to understand the data before them as to how psychological injury risk is being managed.
