Are employee assistance programs (EAPs) mandatory in Australia?

Did you know that nearly one in five people experience poor mental health each year? These individuals are no strangers; they’re our colleagues, friends, and family members. 

The State of Workplace Mental Health in Australia report states that, in the 12 months preceding their assessment, 21% of Australian employees took time off work due to stress, anxiety, depression, or other mental health issues. Even more concerning, that number jumps to 46% for those who view their workplace as mentally unhealthy.

Adding to this, Safe Work Australia reported that 9% of all serious workers’ compensation claims in 2021 to 2022 were related to mental health conditions, which is a dramatic 36.9% increase compared to the 2017 to 2018 period.

With statistics like these, it’s clear that mental health support in the workplace is more important than ever. This is where an Employee Assistance Program or EAP comes into play. Let's discuss EAPs and why you should consider offering them.

Are businesses mandated to have EAPs in place?

The quick answer is no, EAPs are not mandatory for businesses in Australia. Currently, only government agencies are required to offer formal employee support services.

However, all workplaces, whether in the public or private sector, are required to fulfil their obligations under the Australian Work Health and Safety (WHS) Laws. These laws require businesses to provide a safe and healthy work environment, which includes managing psychosocial risks like stress, bullying, and burnout.

So while they’re not compulsory, EAPs can be a highly effective way to help meet these responsibilities.

Your legal duties explained

All businesses have a duty to protect their employees’ wellbeing. While EAPs are not mandatory for all, it is mandatory for businesses to comply with policies that promote physical as well as psychological safety. 

These include the WHS laws, anti-discrimination laws, the Fair Work Act, the Privacy Act. Below are some of the specific employer obligations under WHS:

These obligations are designed to create safe, inclusive, and supportive workplaces, which include managing risks to employees’ mental health.

Failing to meet these obligations can expose businesses to serious consequences, including legal action, reputational damage, and costly workers’ compensation claims. Keep in mind that psychological injury claims tend to take longer to resolve and are often more expensive than physical injury claims.

EAP as a preventative & responsive employee support strategy

Employee assistance programs offer more than just support in times of crisis. When integrated thoughtfully, they act as a proactive tool that helps prevent common workplace mental health issues while providing timely, confidential support when challenges arise. 

1. Supporting early intervention and promoting safety

One of the core strengths of EAPs is their ability to catch issues early. By giving employees access to confidential counselling or therapy, EAPs help individuals manage stress, anxiety, and emotional challenges before they escalate into more serious problems like burnout or prolonged absenteeism.

EAPs also reinforce a culture of safety and inclusion. When promoted effectively, they send a clear message that the organisation is committed to preventing workplace bullying, discrimination, and harassment. This creates a psychologically safe environment where people feel respected, supported, and valued.

2. Reducing legal and organisational risks

Employee assistance providers should help you comply with the psychological safety laws applicable to your business. Beyond compliance, a well-designed EAP can help you build a healthier work environment – one that inspires employees to perform well and attracts culture-fit talents who might support your business in the future.

EAPs can demonstrate a clear commitment to employee wellbeing, reduce the likelihood of serious psychological injury claims, and manage conflicts and risks before they lead to legal or financial consequences.

3. Improving retention and morale

When employees have access to an EAP, they’re more likely to feel supported and valued in their workplace. This sense of care can directly impact job satisfaction, making it easier for staff to stay engaged and committed over the long term.

EAPs can also reduce the emotional strain that leads to burnout or disengagement. When people can manage stress and personal challenges with professional support, they’re more likely to maintain focus, collaborate effectively, and contribute positively to the team. Over time, this leads to stronger morale and better staff retention.

4. Strengthening your employer brand

A well-promoted EAP signals that mental health is a real priority, not just a checkbox in company policy. This has a meaningful impact on how your organisation is perceived by potential candidates and the wider industry.

As employee expectations evolve, particularly among younger professionals, wellbeing programs like EAPs are becoming essential. They help position your business as a progressive, people-focused workplace. This not only supports recruitment but also enhances your reputation as an employer that actively invests in its people.

Final thoughts

Investing in an Employee Assistance Program is not merely a compassionate choice; it is a strategic business decision with far-reaching benefits. By proactively addressing mental health, you create a healthier, more productive workplace that safeguards against legal risks and reduces turnover.

If you’re ready to try an EAP, you can explore Talked’s Beyond EAP or request a demo here.

References:

• Beyond Blue. (2025). Work and mental health. Retrieved from https://www.beyondblue.org.au/mental-health/work

• Beyond Blue & TNS Global. (n.d.) State of workplace mental health in Australia. Retrieved from https://www.qhrc.qld.gov.au/__data/assets/pdf_file/0012/20145/TNS-report.pdf

• Safe Work Australia. (2024). New report on psychological health in Australian workplaces. Retrieved from https://www.safeworkaustralia.gov.au/media-centre/media-release/new-report-psychological-health-australian-workplaces