Beyond Compliance: How Nova Scotia’s New Workplace Framework Strengthens Teams (and How Other Provinces Stack Up)

Elizabeth Eldridge
Sep 5
6 min read

Legislative changes can feel daunting for employers — rewriting policies, retraining staff and keeping up with compliance deadlines. But Nova Scotia’s latest updates to workplace psychological health and safety, which came into effect earlier this week (September 1^st, 2025) shouldn’t be seen as just another hoop to jump through. They’re a chance to strengthen your team, reduce hidden costs and foster a culture where people feel safe and able to bring their best selves to work.

Psychological Injury in Real Life

Psychological injuries can feel like an abstract concept until you see how they play out in real workplaces. They don’t come with a cast or a bandage, but the toll they take on people (and on organizations) is just as serious. Let’s take a look at a couple of examples.

Mark’s gradual-onset injury

Mark is a machinist whose supervisor regularly belittles him, excludes him from meetings and mocks his work. Over the course of months the stress builds up, leading to panic attacks, insomnia and eventually a diagnosis of generalized anxiety disorder. This is a gradual-onset psychological injury. As of last September (2024), these types of claims are compensable through Nova Scotia’s Workers’ Compensation Board (WCB), as is the case in several other provinces.

Priya’s traumatic injury

Priya works in retail. One day, a customer threatens her during an argument. The incident leaves her with flashbacks, heightened anxiety and a diagnosis of post-traumatic stress disorder. This is a traumatic psychological injury, caused by a single event. This type of claim is recognized (compensable) across Canada.

Both Mark and Priya’s stories highlight that psychological harm is just as real and just as costly as physical harm. Yet many employers still aren’t fully apprised of what a psychological injury is. These injuries arise when workplace factors lead to diagnosable conditions such as anxiety, depression or PTSD. They may result from a single traumatic event or from ongoing harmful stressors over time.

What the September 2025 Nova Scotia Changes Require

The Stronger Workplaces for Nova Scotia Act (Bill 464) amended the Occupational Health and Safety Act to make psychological health and safety explicit.

Harassment Prevention Policy Requirements

Every provincially regulated employer must implement a written policy that includes:

Definitions and behaviour standards – clearly describing harassment, bullying, intimidation and threats.
Reporting procedures – multiple safe avenues for employees to raise concerns.
Investigation process – impartial, timely and transparent.
Confidentiality and non-retaliation – protections to ensure employees can come forward safely.
Corrective actions – from mediation to discipline, with accountability measures.
Communication of outcomes – informing both complainant and respondent, within privacy limits.
Review cycle – policy must be reviewed at least every three years.

Mandatory Training

Employees must be trained on the policy so they:

Recognize what harassment and psychological harm look like.
Understand how and where to report concerns.
Know what to expect from the investigation process.
Are reassured that retaliation is prohibited.

Training doesn’t have to be lengthy, but it must be clear, accessible and refreshed when policies change.

Why Now? The Push for Change

Stories like Mark’s and Priya’s aren’t isolated. They reflect broader patterns across Nova Scotia. Rising claims, equity reviews and employee voices all pointed to the same conclusion: the system wasn’t doing enough to protect psychological health, and change couldn’t wait.

WCB data: Nova Scotia saw a rise in psychological injury claims, with both traumatic and gradual-onset injuries straining workers and employers alike.
Office of Equity and Anti-Racism Initiatives (2022): A provincial review identified systemic racism, inequity and a widespread lack of psychological safety in workplaces. This office, created under the Dismantling Racism and Hate Act (2022), pushed for reforms to ensure safer, more equitable workplaces.
Public consultations: More than 600 Nova Scotians participated, sharing experiences of harassment, bullying and discrimination.

The conclusion was clear: to build fair, safe, and sustainable workplaces, harassment prevention and psychological health protections had to be codified into law.

So What Exactly Is Psychological Safety?

Psychological safety means employees feel free to share ideas, raise concerns and admit mistakes without fear of embarrassment, rejection or punishment. It’s the bedrock of trust and collaboration. By embedding it into occupational health and safety law, Nova Scotia has sent a clear message: protecting mental well-being is not optional; it’s a core workplace obligation.

Province-by-Province: Where Psychological Injury Stands

Here’s the current picture across Canada:

Nova Scotia: Gradual-onset psychological injury has been compensable since 2024. As of September 1^st, 2025, every employer must also have a written harassment prevention policy, deliver training and review the policy at least every three years.

Prince Edward Island: Gradual-onset psychological injury has been compensable since January 1^st, 2025, when the WCB expanded coverage to include harassment-related psychological injuries alongside traumatic events.

New Brunswick: Gradual-onset psychological injury is not compensable. Current policy, updated in 2021, only covers traumatic mental stress from sudden events.

Newfoundland & Labrador: Gradual-onset psychological injury is not compensable at this time. The WCB has consulted on expanding coverage (2023-2024), but no changes have been implemented yet.

Quebec: Gradual-onset psychological injury has been compensable under CNESST for many years, with explicit workplace harassment protections introduced in 2004. Chronic workplace stress is recognized where it results in a diagnosable condition.

Ontario: Gradual-onset psychological injury has been compensable since 2018 under WSIB’s Chronic Mental Stress policy, which covers bullying, harassment and other substantial work-related stressors.

Manitoba: Gradual-onset psychological injury has been partially compensable since 2023. The WCB accepts claims linked to harassment, bullying or cumulative traumatic events, but ordinary job pressures and general work stress remain excluded.

Saskatchewan: Gradual-onset psychological injury has been compensable since 1992, with expanded guidelines introduced in 2025 to clarify eligibility and broaden coverage.

Alberta: Gradual-onset psychological injury has been compensable since 2000, with WCB policies recognizing chronic stress where work factors are excessive or unusual. Major reforms in 2018 refreshed the framework.

British Columbia: Gradual-onset psychological injury has been compensable since 2012, when Bill 14 expanded coverage to mental disorders caused by significant work-related stressors or cumulative bullying and harassment.

Yukon: Gradual-onset psychological injury is not compensable. Current WCB policy only recognizes psychological injuries caused by traumatic events (such as PTSD).

Northwest Territories and Nunavut: Gradual-onset psychological injury is not compensable. WSCC policies focus on traumatic events, and pure mental stress claims are excluded.

What’s Ahead: The Grey-Zone Injuries

Even with Nova Scotia’s progress, not every type of psychological harm is fully recognized yet. Employees continue to struggle with conditions that fall outside today’s legislation but have very real effects on their health and careers. And workplaces are already feeling their impact:

Karen’s moral injury – A nurse forced to work in unsafe conditions that violate her values, leading to depression. Moral injury isn’t a separate WCB category but may qualify if it develops into a diagnosable disorder.
Sahim’s secondary trauma – A social worker repeatedly exposed to clients’ traumatic stories, eventually developing PTSD. Coverage varies across provinces.
Leah’s burnout – A project manager experiencing exhaustion, cynicism and reduced performance. Burnout itself isn’t compensable. (But if it leads to depression or anxiety, those diagnoses can be.)

Legislation often lags behind lived experience. Employers who wait until laws “catch up” risk scrambling. Those who act now to embed psychological safety and strong policies will be ahead of the curve.

Why Proactive Beats Reactive

The law sets the minimum standard, but stopping at compliance leaves organizations exposed. Meeting the letter of the legislation may keep you out of trouble with regulators, but it won’t protect you from the very real risks of ignoring psychological health. When employees don’t feel safe, respected or supported, the costs quickly add up: higher turnover, increased absenteeism, longer disability claims and reputational damage that can make it harder to recruit and retain top talent.

Proactive organizations understand that psychological health and safety isn’t just about preventing harm. It’s about building resilience, trust and loyalty. Leaders who move beyond compliance take deliberate steps to create workplaces where people feel valued and empowered. That investment pays off in measurable ways: improved productivity, stronger engagement, reduced costs and a workplace culture that attracts talent instead of pushing it away.

Proactive leaders don’t just avoid penalties. They create healthier, more engaged teams and position their organizations as true employers of choice. In a competitive labour market, that edge matters.

Final Thoughts

Nova Scotia’s legislation raises the bar: psychological health is now recognized as a core element of workplace safety. But the law is only the starting line. True progress happens when employers weave psychological safety into daily practice. So congratulations to Nova Scotia for taking a bold and forward-thinking step by embedding psychological health and safety directly into workplace legislation. This change acknowledges the real impact of psychological injury and positions the province as a leader in creating more respectful workplaces.

Regardless of what province you’re in, if your organization is ready to make psychological health and safety a real priority in your workplace, I can help. I deliver tailored training solutions and consulting to help build stronger, healthier teams. Get in touch today to turn compliance into culture change. Give your organization a competitive advantage, and give your team the safe, supportive workplace everyone deserves.

Elizabeth Eldridge is a Psychological Health & Safety Consultant based in southern New Brunswick, Canada. In addition to keynote speaking and corporate training on mental health in the workplace, she supports organizations across the country on the adoption of Canada's best practice guidelines on psychological health and safety management. She is the Founder & President of Arpeggio Health Services which provides standardized education programs like Mental Health First Aid, The Working Mind, QPR Suicide Prevention and more.