The danger of stress in the workplace has been at the forefront of discussions about employment law issues in recent years but there are worrying signs that claims are now increasing fast. Measures such as the Working Time Regulations have brought into focus the desire by legislators to try to reduce the incidence of ill health caused by stress at work and media coverage is fuelling the debate.

Increasingly stress is featuring in Employment Tribunal claims as a reason for an employee having been constructively dismissed. Personal injury caused by stress is also now cited as a form of damage suffered by employees both in the Tribunal claims and as the subject of litigation in the County or High Courts.

There is no doubt that “Stress Litigation” is a growth industry. A number of high profile cases resulting in six figure awards have highlighted the dangers to employers and the attractions to employees of litigating, especially in the new climate of the no win no fee litigation.

Furthermore stress brings with it a considerable loss of productivity through poor attendance records (one study estimated that 60% of all absences are caused by work induced stress). The emphasis for employers must therefore be to know their legal obligations and to take active steps to prevent claims.

The Legal Obligations

The basic obligations stem from the Health and Safety at Work etc Act 1974, which will be familiar to all employers. There is a multitude of other Regulations, but the basic principle is that every employer has a duty to look after the health and safety of their employees. This includes managing risks attributable to the manner of conducting the business and the conditions of the premises.

The key words are “the manner of conducting the undertaking”. The point is straightforward and if anything attributable to the method of work or the pressure of work causes stress to an employee which in turn affects the employee’s health then the employer will be liable to the employee in damages. Employers need to remember that the Health & Safety Executive has wide ranging powers to prosecute employers for failing to protect the health and safety of their employees.

What causes stress?

Generally, stress is caused by a lack of support for staff combined with a lack of clear goals and objectives and unrealistic or unreasonable expectations. It is well known that boring and repetitive work can cause stress but so can too much or too little work. Equally, work which is too difficult for an employee or which is too easy may be the cause of stress and be subject of a claim.

A “blame culture” or working conditions in which employees are excluded from decision making and are not consulted about proposed changes can also be claimed as the cause of ill health. Obviously bullying or sexual or racial harassment will inevitably lead to employees suffering from stress.

What preventative measures can one take?

Employers should:

ensure that employees are given clear goals and made fully aware of what is expected from them

give employees flexibility to allow some degree of control over their workload

redistribute workloads where possible and necessary to prevent any one employee becoming overwhelmed by the burden of work

maintain high standards of health and safety and regularly monitor them

ensure that employees are adequately trained for their job

ensure they actually listen to their employees? concerns and try to address any issues which may arise.

keep a close eye on the day to day working relationships between employees to ensure that there is no bullying or other form of harassment being suffered

What should I be looking out for?

An employee suffering from stress rarely complains but there are usually some give away signs:

persistent lateness and a falling off in performance

take immediate action and give the employee time off - do not wait for a complaint - by the time an employee complains it may already be too late!

offer counselling and medical support if there is a company health scheme

carefully liase with the employee’s doctor

ensure that the causes of the stress are identified and are eradicated to prevent a recurrence.

What should you do if a stress claim is brought?

Inform your employee liability insurers that a claim is being made even if the claim is initially only in the Employment Tribunal.

The claim may well combine a number of statutory claims from Sex and Race Discrimination through to Disability Discrimination.

Since there are no statutory limits to the amount that can be claimed ensure that you make early financial provisions for payment of both damages and costs.

Do not under any circumstances ignore the Notice of Originating Application (IT1) since the time limits are very tight and make sure that a comprehensive set of paperwork is sent to your legal advisors as soon as possible.