Managing stress at work is not only the right thing to do under a moral duty, but also a legal requirement. Managing it correctly means that you will bring benefits to your business, which will ultimately have positive financial repercussion too. What are the principal types of civil claims and regulatory enforcement that can arise from failures to control stress?
Shifting from a wellbeing concern to a source of significant legal risk
Stress is expressly treated as a workplace hazard which you are legally required to risk assess and control “like any other workplace health and safety issue”, not just as a wellbeing topic.
All employers have a general obligation to safeguard employees’ health, including mental health, “so far as is reasonably practicable”, and to assess risks and put in place control measures to eliminate or mitigate them. This duty extends to non‑employees who may be affected by their activities, such as contractors, freelancer workers, agency staff, etc.
Liability for stress‑related injury arises only where four conditions are met: (1) there is a physical or psychiatric injury to health; (2) that injury is attributable to workplace stress; (3) it is caused by a breach of the employer’s duty of care; and (4) the injury was reasonably foreseeable.
However, the courts emphasise that no job is intrinsically dangerous to mental health; rather, liability turns on the interaction between the individual and the job, and whether the employer knew or ought reasonably to have known of a risk of psychiatric injury and failed to take reasonable steps.
In practice, this means that unmanaged stress can translate into:
- negligence and personal injury claims
- breach of contract and constructive dismissal claims
- discrimination and harassment claims where stress is linked to disability or protected characteristics
- claims and criminal enforcement under working time and health and safety regimes; and
- significant compensation awards, including for future loss of earnings and personal injury.
The underlying factual context is that stress can be caused or aggravated by work organisation, e.g. workload, bullying or harassment, poor support, unclear roles, long hours, etc., and that these factors can lead to clinically recognised psychiatric injury, such as depression or anxiety disorders, which in turn may give rise to liability where employers have not properly assessed and controlled the risks.
Statutory duties to manage stress
The same legal duties apply to managing stress as to other workplace risks according to the Health and Safety at Work etc. Act 1974. You must assess the risks to employees’ mental health and implement appropriate control measures, accompanied by suitable information, training and supervision to ensure those measures are effective.
Stress is recognised as a workplace hazard in any organisation, so you must carry out a “suitable and sufficient” risk assessment to identify potential causes of stress and put in place reasonably practicable control measures, following the general risk‑assessment framework under reg 3 of the Management of Health and Safety at Work Regulations 1999.
You must consult employees when conducting risk assessments, using discussions and surveys to obtain a realistic picture of working conditions; they should gather as much information as possible and use structured tools such as “Stress Talking Toolkits” and stress self‑assessment checklists.
Tip. The HSE recommends a structured, five‑step approach to stress risk assessment, including preparation, data collection, evaluation and action planning, and encourages employers to use its Management Standards as a framework for identifying and tackling work‑related stress. These focus on six key stress factors - demands, control, support, relationships, role and change - and specify expected standards and example measures, such as ensuring workloads are achievable, giving employees some control over their work, providing support and feedback, preventing bullying, clarifying roles and managing organisational change with proper communication. If you follow the HSE guidance, it will mitigate enforcement action that may be taken against you, as you will be adhering to best practice.
Once you are aware of a particular employee’s stress or vulnerability to stress, there is a more positive duty to monitor actively and not rely solely on the employee to report deterioration. Referrals to medical professionals and even funding treatment can be reasonable steps.
Evidence that you have carried out suitable risk assessments, reviews and monitoring for stress, and acted upon warning signs, is central to showing that you have discharged your duty and are not liable for stress‑induced psychiatric injury.
Note. The duty does not extend to protecting employees from the everyday stresses or anxieties of normal working life which do not cause injury, nor from ordinary feelings such as anger or resentment.
Duty of care at common law
However, it is far more likely that companies will receive compensation claims from individuals, claiming negligence in managing work-related stress.
At common law, you will breach your duty of care if you know, or ought to know, of an employee’s problem or vulnerability, including stress, and fail to take reasonable steps to prevent injury occurring or recurring. Reasonable steps are judged by the magnitude of the risk, the cost of preventing it and the likely effectiveness of any measures, having regard to the size and resources of the employer and the need to treat other employees fairly when redistributing duties. Tip. Following the HSE’s Management Standards will also stand as a strong defence against a civil lawsuit.
If there is contributory negligence, the general rules of apportionment apply so that you only pay for the proportion of harm attributable to your wrongdoing, unless the harm is genuinely indivisible, and damages will reflect pre‑existing vulnerabilities and the chance that the employee would have suffered a stress‑related disorder in any event.
Case studies
In Marsh v Ministry of Justice 2017, a prison officer, suspended following allegations of sexual assault, developed depression. The court held that the employer breached its duty of care when it unnecessarily postponed its internal disciplinary investigation, prolonging suspension and thereby prolonging his psychiatric injury, and awarded over £286,000, largely for future loss of earnings.
In Daw v Intel Corporation Ltd 2007, the Court of Appeal found the employer partly liable where an accountant with a history of post‑natal depression made repeated attempts (twelve times) to highlight overwork but received little support beyond short‑term counselling This alone was not enough to discharge the duty.
In Vahidi v Fairstead House School Trust Ltd 2005, the Court of Appeal held there was no breach where the employer, aware of the risk of relapse, implemented a phased return and weekly support meetings. Although a relapse was foreseeable, the employer had taken all reasonable steps.
Employers may be liable even for severe outcomes. In Corr (Estate of T Corr, deceased) v IBC Vehicles 2008, the House of Lords held that the employer was responsible for an employee’s suicide occurring six years after a serious workplace accident, because his severe depression was a foreseeable consequence of the original injury.
The Equality Act 2010
Mental health conditions, including stress‑related depression or anxiety, can amount to a disability under the Equality Act 2010, triggering the duty to make reasonable adjustments to remove or reduce substantial disadvantages in the workplace. Failure to meet this duty can lead to discrimination claims. Where stress leads to, or is part of, a mental impairment that qualifies as a disability, you may face Equality Act 2010 claims for: (1) failure to make reasonable adjustments; (2) discrimination arising from disability; (3) direct or indirect disability discrimination; and (4) harassment related to disability.
In Saunders v Peloton Interactive UK Ltd, the tribunal held that the employer failed to make reasonable adjustments for an autistic employee by not providing scheduled rest breaks and not moving him to a suitable non‑public‑facing role, despite occupational health recommendations; these reasonable, low‑cost steps would have helped him cope with sensory overload and stress.
Bullying and harassment can cause stress and mental health difficulties and may lead to discrimination or harassment claims where the conduct is linked to a protected characteristic such as sex, race or disability. They may also support personal injury, constructive dismissal and unfair dismissal claims. From 26 October 2024, s.40A Equality Act 2010 imposes an anticipatory duty on you to take reasonable steps to prevent sexual harassment by colleagues and third parties, requiring proactive identification of risk scenarios and preventative measures, which is directly relevant where sexual harassment is a source of stress.
Bullying and harassment, such as spreading rumours, unfair treatment, undermining, or blocking training and promotion, are typically repeated behaviours that cause stress and, if unchecked, can lead to mental health difficulties. Although there is no standalone civil claim for “bullying” as such, such conduct can support:
- harassment or discrimination claims under the Equality Act 2010 where linked to protected characteristics
- civil harassment claims under the Protection from Harassment Act 1997
- personal injury claims; and
- constructive or unfair dismissal claims where the employee resigns or is dismissed as a consequence.
In Connor v Surrey County Council 2010, a headteacher subjected to bullying and harassment by governors, including unfounded allegations of racism and religious prejudice, became clinically depressed and took ill health retirement. The employer was held liable in negligence for failing to consider protective measures , such as installing an interim executive board, sooner.
Note. Regulators and bodies such as Acas and the Equality and Human Rights Commission stress the importance of effective anti-harassment policies, risk assessment, mitigation measures and staff training to recognise and address harassment, reflecting that failure in these areas can increase both legal and reputational risk.
Working Time Regulations 1998
You must ensure that employees work within statutory limits on weekly working time, night work, daily and weekly rest periods, in‑work rest breaks and annual leave under the Working Time Regulations 1998. A worker is entitled to an in‑work rest break of at least 20 minutes when daily working time exceeds six hours, which must be a genuine break in working time, not at the start or end of the day, and not merely re‑labelled “downtime” or an uninterrupted period on call.
Where the pattern of work puts health and safety at risk, e.g. monotonous or uninterruptible work or particularly physically or mentally demanding work, you must ensure adequate rest breaks that may exceed the minimum regulatory standards.
You must proactively organise work so that workers can actually take their rest breaks; if working arrangements prevent the taking of the 20‑minute break, the entitlement is treated as having been refused.
Breaches of working time rules can be enforced by the HSE or local authorities via criminal offences, e.g. excessive weekly working time and night work, and workers can bring employment tribunal claims for breaches of rest and leave entitlements and may also claim unfair dismissal or detriment for asserting their working time rights.
Contractual claims and constructive dismissal
An employer’s failure to manage stress can also amount to breach of the implied term of mutual trust and confidence, supporting constructive dismissal claims where the employee resigns in response to intolerable working conditions or mishandled processes.
Where the employer’s unreasonable conduct occurs in events leading up to dismissal, e.g. the way a disciplinary procedure is conducted, but not in the act of dismissal itself, an employee may recover damages at common law for psychiatric injury suffered because of that pre‑dismissal conduct. However, financial loss due to psychiatric injury arising from the dismissal itself, or the manner of dismissal, is not recoverable at common law, though it may be compensable as part of a statutory unfair dismissal claim.
Tribunals can award substantial compensation for discrimination involving mental health injury, including future loss of earnings, injury to feelings, aggravated damages and specific sums for personal injury, as shown by an award exceeding £470,000 in Borg‑Neal v Lloyds Banking Group PLC, which included £23,000 for severe anxiety and depression and further awards for injury to feelings and aggravated damages.
Positive financial impacts
Along with the legal and moral duties, managing stress in the workplace can lead to significant positive financial impacts. Addressing and proactively managing work-related stress bring key benefits, which include:
Increased productivity. Employees who are less stressed are more likely to focus and perform their tasks effectively, leading to higher productivity levels.
Reduced absenteeism. Stress can cause employees to miss work due to health issues or financial worries, which can lead to increased absenteeism costs for employers.
Lower turnover rates. A supportive work environment that addresses stress can lead to lower turnover rates, as employees are more likely to stay with the organisation when they feel valued and supported.
Improved employee wellbeing. Work-related stress can negatively impact employee health and wellbeing but managing it can lead to better mental and physical health, which in turn can improve employee performance.
Less risk of fines and prosecutions. A well-managed workplace will not attract the attention of enforcement officers and reduce the likelihood of personal injury claims, both of which could result in fees, fines and valuable resources being utilised to undertake time-consuming investigations and defence strategies.
Monitoring, support and reasonable responses
There is no general duty to monitor all employees for stress. However, where you are aware that a particular employee is susceptible, a more active duty to monitor and support arises, and you should not simply rely on the employee to report difficulties. The duty to act is triggered when indications of impending harm to health from work‑related stress are sufficiently plain that any reasonable employer would realise it must do something. In such cases, steps such as medical referrals, funded treatment, workload review and adjustments may be required.
You may generally take what an employee says at face value and are not required to make intrusive medical enquiries, but should remain alert to signs of stress, and once aware of an issue, you should seek medical advice and monitor the situation appropriately.
Tip. Confidentiality is critical. Where health information is held in occupational health records or similar, employers are not deemed to know it unless it has been communicated to them, and where they do know, they must act sensitively and avoid unauthorised disclosure.
Tip. Employers who offer confidential advice services or employee assistance programmes are less likely to be found in breach of duty, but such services are rarely sufficient on their own, as they cannot, for example, reduce excessive workloads, and employees cannot reasonably be criticised for not using them.
Workplace stress is a legal risk because it engages multiple overlapping duties: general health and safety obligations to assess and control mental‑health risks; a common law duty of care to take reasonable steps when stress is known. Where these duties are breached and foreseeable psychiatric injury results, employers face negligence and personal injury claims, often with substantial awards for future loss of earnings and personal injury.
Accordingly, you must treat stress as a core compliance issue. You should conduct robust stress risk assessments, consult staff, implement the HSE Management Standards, respond promptly to warning signs, make reasonable adjustments where required, and ensure working time arrangements protect mental as well as physical health to protect your business against prosecution.
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