SafeWork NSW has initiated an unprecedented intervention by requiring the University of Technology Sydney (UTS) to pause the planned release of its formal change proposal (part of its consultation plan for upcoming redundancies) due to a “serious and imminent risk of psychological harm” to staff.

Background

In late 2024, UTS launched the Operational Sustainability Initiative; a sweeping plan based on an analysis by KPMG, aimed at cutting $100 million in costs, affecting around 400 jobs. UTS said it required significant cost cutting in order to repay $300 million in investment grade bonds in 2027.

In April 2025, UTS advised staff that around 150 academics and 250 professional roles could be made redundant. The plan included temporary suspension of new student enrolments in roughly 120 courses, representing a decrease of approximately 20% of its total course offerings. This comes off the back of record high enrolments for international students in 2025, despite earlier messaging from the Vice Chancellor that lower international student numbers in 2025 was a contributing factor in the required cost-cutting measures.

Disputation & psychological risks

UTS have been under intense scrutiny this year due to complaints made by staff to the education watchdog, a safety investigation being initiated by SafeWork in June and an application by the National Tertiary Education Union (NTEU) in August to the Fair Work Commission for an interim order to stop UTS from proceeding with the course suspensions, claiming UTS had not consulted with staff prior to announcing these changes.

In 2024, a pulse survey by NTEU of 380 staff revealed that 35% were experiencing very high psychological distress due to the looming job cuts. Staff also reported an overarching "culture of fear," high stress, and feelings of helplessness and mistrust towards management. 

Compounding these tensions was advice to staff, directing them to a wellbeing hub with 50 tips for people facing redundancy, which included advice like "bake a dessert" and "brush or floss your teeth every day. Dental work later in life can be painful and expensive!" - gestures that were criticised for trivialising genuine distress.

SafeWork NSW intervention
In response to these concerns, SafeWork NSW issued a prohibition notice on 2 September 2025, mandating a pause on all redundancy related meetings and the release of formal change proposals, citing a “serious and imminent risk of psychological harm” to staff. This notice is legally binding and requires UTS to consult with staff to identify and implement effective safety and psychosocial risk controls.

What happens next?
UTS must respond within 14 days to SafeWork NSW, to demonstrate that meaningful, consultative psychosocial safety measures are in place. Consultation processes are on hold pending SafeWork’s approval of these safety controls. The Fair Work Commission dispute is ongoing.

Broader implications
The case underscores a critical shift in how regulators view employer responsibility, especially in professional settings, where organisational change alone can constitute a psychosocial hazard under WHS legislation. This is definitely one to watch!