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Workplace Culture, DEI & Wellbeing

What is a Mental health in the workplace?

Updated 29 Jan 2026 5 min read

Mental health in the workplace encompasses the psychological wellbeing of employees and organisational practices that support, protect, or impact mental health. It includes preventing work-related mental health issues, supporting employees with mental health conditions, and creating psychologically healthy work environments.

Understanding workplace mental health

Workplace mental health is increasingly recognised as essential to organisational success. Poor mental health affects productivity, engagement, and retention. The cost of untreated mental health conditions far exceeds the investment in prevention and support.

Mental health scope

  • Preventing work-related harm
  • Supporting existing conditions
  • Promoting positive wellbeing
  • Creating safe environments

Business impact

  • Absenteeism and presenteeism
  • Productivity and engagement
  • Turnover and retention
  • Workers' compensation claims

Australian context

Key legislation and frameworks:

Australian mental health framework

Work Health and Safety laws: Duty to manage psychosocial hazards (recently strengthened in most jurisdictions)
Disability Discrimination Act: Mental health conditions are protected; reasonable adjustments required
Fair Work Act: Adverse action based on mental health is prohibited
National workplace initiatives: Mentally Healthy Workplace Alliance, Beyond Blue workplace programs

Warning signs

  • Behavioural changes: Withdrawal, irritability, mood swings
  • Performance changes: Declining quality, missed deadlines, errors
  • Attendance changes: Increased absence, frequent lateness
  • Physical signs: Fatigue, changed appearance, frequent illness
  • Social changes: Isolation, conflict with colleagues
  • Communication changes: Less engagement, negative outlook

Prevention is primary

While supporting struggling employees is important, the primary focus should be preventing harm in the first place. Address workload, job design, bullying, and management practices before individuals reach crisis point. Reactive support is necessary but not sufficient.

Supporting mental health

Prevention

  • Manage workload and job demands
  • Build psychologically safe culture
  • Address bullying and harassment
  • Support work-life balance

Support

  • Provide EAP services
  • Train managers to have conversations
  • Offer flexible arrangements
  • Support return to work

Common mental health mistakes

EAP as the only solution

Relying solely on EAP without addressing workplace causes. If work is causing harm, counselling helps individuals cope but doesn't fix the underlying problem. Address psychosocial hazards at source.

Stigma and judgment

Creating policies but maintaining a culture where mental health disclosure is risky. If employees fear career impact from disclosure, they won't seek help until crisis point.

Performance before person

Focusing on performance management when someone is struggling rather than understanding and support. While performance matters, leading with discipline rather than care usually backfires.

Key takeaways

Workplace mental health requires both prevention (addressing psychosocial hazards) and support (EAP, flexible arrangements, manager training). Australian WHS laws increasingly require employers to manage psychological risks. Creating psychologically safe environments benefits everyone, not just those with diagnosed conditions.

RosterElf's staff management supports workplace mental health through fair scheduling, manageable workloads, and flexible work options.

Frequently asked questions

Georgia Morgan

Written by

Georgia Morgan

Georgia Morgan is a former management executive with extensive experience in organisational strategy and workforce management. She joined RosterElf to support strategic planning and operational development, bringing a pragmatic, people-focused perspective shaped by years of leadership in complex environments.

General information only – not legal advice

This glossary article about mental health in the workplace provides general information about Australian employment law and workplace practices. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

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