Safe work is a fundamental right of all workers, and HR compliance today is more concerned about maintaining and promoting workplace health and safety. However, occupational hazards are significantly high in the healthcare sector, and healthcare workers face a wide range of vulnerabilities in their job that can lead to - infections, illnesses, injuries, and even death. The paper sought to investigate the relationship between occupational hazards faced by healthcare workers and the degree to which it affects their mental health. This study is causal and quantitative. The data is collected via a non-probability convenience sampling technique from 385 healthcare workers working in 4 different public hospitals in Khulna city. A questionnaire was constructed using a five-point Likert scale with 29 statements, adopted and modified from ILO-International Hazard Datasheets on Occupations and Hospital Anxiety and Depression Scale. The presence of Biological and Chemical hazards is higher than the others, and overall, a moderate level of Occupational Hazard exists presently in the healthcare sector. Also, Female workers are burdened with higher levels of mental health issues than male workers. Moreover, doctors, nurses, and cleaners have higher levels of mental health issues than others. Moderate levels of occupational hazards are present among healthcare workers in Bangladesh, causing a moderate level of mental health issues. Biological, physical, chemical, and psycho-social hazards have a significant positive degree of impact on healthcare workers' mental health issues, whereas Accidental Hazard has a significant negative impact. The findings may be useful to HR professionals, Compliance managers, Human Rights Agencies, Government bodies, etc., for developing & promoting safe work practices and mental health.