Are EAPs Mandatory in Australia? | Workplace Compliance & Mental Health Support
Last Updated 15/1/26 By Vanessa Cortez
EAP Programs @ Mindway EAP
As the number of businesses in Australia grows, the question "Are EAPs needed?" keeps coming up. Many companies are afraid that they are following the law when it comes to mental health. This is because of new rules about psychological risks and a greater focus on following Fair Work and WorkSafe. There are no rules in Australia that force people to use employee assistance programs (EAPs). But it's the law that bosses have to make sure the places where their employees work are safe and healthy. Now it's part of this to deal with mental health risks like stress, bullying, and burnout. Setting up an Employee Assistance Program, or EAP, is thought to be one of the best and most well-known ways to keep these promises.

This article talks about the law, why it's important to have an employee assistance program (EAP), and how EAPs help both workers and employers.

What You’ll Learn in This Article
  • Whether Australian law requires EAPs
  • How workplace safety and Fair Work laws apply to mental health
  • Why many organisations choose to offer EAPs despite no legal mandate
  • Practical ways EAPs reduce risks and support compliance
  • A sample conversation between an employee and employer on EAP use
  • A real-world story showing the benefits of having an EAP
  • Key takeaways for HR managers and business owners

What the Law Says About EAPs

There is no federal law that says companies have to offer Employee Assistance Programs (EAPs), but if they do, they have to follow rules that protect employee privacy and confidentiality. The Americans with Disabilities Act (ADA) and the Health Insurance Portability and Accountability Act (HIPAA) can affect how EAP information is handled. Employers must make sure that employees choose to use an EAP and that employees are not punished because of private EAP records. Any medical or counselling services offered by an EAP must also follow state rules about licensing and professional practice.

Employee:
I’ve heard EAPs are required by law. Is that true?
You:
Not exactly. They’re not legally mandatory, but we provide one because WorkSafe and Fair Work expect us to manage psychological risks. EAP is one of the best ways to do that.

Why Employers Choose to Offer EAPs

EAPs, or Employee Assistance Programs, are offered by companies to help their workers stay healthy, happy, and effective. By giving workers private tools like counselling and advice, EAPs help lower stress, absences, and employee turnover. They also help businesses find and fix problems quickly, which can save money on things like health care and unemployment. Giving your workers an EAP could help improve the culture of the company and show that you care about them and want to keep them.
"You can’t have compliance without care, the safest workplaces are those where people feel supported." - Mental Health Australia

EAPs as a Risk Management Strategy

Employee Assistance Programs, also known as EAPs, are offered by employers because they assist workers in maintaining their health, happiness, and productivity. By providing employees with confidential resources such as counselling and advice, employee assistance programs (EAPs) help reduce employee stress, absenteeism, and attrition rates. Additionally, they assist businesses in addressing issues at an earlier stage, which can result in cost savings for areas such as health care and disability. If you want to show that you care about your employees and want to keep them, providing an employee assistance program (EAP) could help improve the culture of the firm.

The fact that employees at a medium-sized financial firm in Melbourne were continuing to put in lengthy hours was causing the company to experience increasing levels of stress. One of the workers went to the human resources department and submitted a formal complaint, claiming that they were exhausted and stressed out. In the event that Fair Work did not have clear support mechanisms in place, it might have filed a lawsuit against the firm for failing to comply with health and safety regulations.

The implementation of an employee assistance program (EAP) in the company was a fantastic thing. The worker sought out private counselling, devised strategies to address their issues, and collaborated with their management to make adjustments to their work schedules before leaving the company. The corporation handled the report internally and did not send it to the authorities for further investigation. The fact that this was done not only prevented the company from getting into legal difficulties, but it also made all of the members of the team pleased.

Beyond Legal Obligations: A Culture of Care

The cultural rationale is the most persuasive explanation for employee assistance programs (EAPs), despite the fact that the legal reason is extremely important. Employers have the capacity to decrease stigma, encourage open and honest interactions, and provide a secure working environment if they normalise mental health support and make it more acceptable to receive it. The result of this is an increase in the number of employees who remain with the company, a rise in the level of engagement, and an all-around improvement in performance.

Key Takeaways
  • EAPs Are Not Legally Required
    No law in Australia mandates EAPs, but WHS laws require psychological safety.
  • Regulators Expect Risk Management
    Fair Work and WorkSafe expect employers to address psychosocial hazards.
  • EAPs Reduce Legal & Workplace Risks
    They provide confidential support, early intervention, and evidence of compliance.
  • Beyond Compliance, EAPs Build Culture
    EAPs demonstrate care, strengthen engagement, and protect long-term wellbeing.
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