Workplace health and safety (WHS) legislation in Australia increasingly recognises psychosocial hazards — stress, trauma exposure, bullying, and organisational injustice — as significant risks to employee health and wellbeing. Yet one dimension remains under-examined: moral injury. Originally conceptualised in military and clinical contexts, moral injury refers to the profound psychological, emotional, and ethical distress that arises when individuals perpetrate, fail to prevent, or witness actions that transgress their deeply held moral or ethical values. In occupational settings, moral injury is emerging as a critical but overlooked psychosocial hazard with direct implications for workforce wellbeing, organisational performance, and compliance with WHS obligations. This paper argues that moral injury is a missing link in current psychosocial wellbeing frameworks. Drawing on scholarship from psychology, human resource management, and organisational behaviour, it explores how moral injury manifests in workplaces through systemic failures, unethical decision-making, role conflict, and organisational cultures that silence or punish ethical dissent. Unlike burnout or secondary trauma, moral injury is uniquely tied to value violation and erosion of trust — resulting in diminished employee engagement, high turnover, and long-term mental health consequences. For managers and boards, this presents not only a human cost but also a governance and legislative risk under WHS provisions. The paper situates moral injury within the broader landscape of trauma-informed practice and survivor-centred approaches to employee care. It emphasises the need for leadership capacity to identify, prevent, and respond to moral injury as part of integrated psychosocial risk management. Evidence from sectors such as health, justice, policing, and community services highlights how moral injury compounds existing psychosocial stressors, undermining both worker resilience and organisational safety. The analysis concludes by proposing a framework for recognising moral injury as a distinct category of psychosocial harm, and for embedding moral repair strategies — ethical leadership, organisational accountability, and supportive HR practices — into workplace wellbeing systems. In doing so, it challenges policymakers, practitioners, and scholars to expand the psychosocial discourse to address moral injury as a critical, yet missing, dimension of workplace health, safety, and dignity.