STRESS IN THE WORKPLACE

With over 11.4m working days lost per year at an estimated annual cost to employers of £1.24 billion the negative impact of stress related absence is a real concern for any company in the 21^st Century. These statistics show how important it is for employers to take the appropriate advice available to them to help minimise the impact stress can have upon their workforce.

Stress can lead to claims in the employment tribunal. Employees can get to the point where they feel they have no choice but to resign, and then make a claim of constructive dismissal. These types of claims can arise from situations where employees have felt bullied, harassed or discriminated against on grounds of race, sex, disability, age, religion or sexual orientation as well as the more straightforward workload and lack of support issues that cause employees to resign under stress.  Awards for discrimination cases in the employment tribunal have no set upper limit.

Because stress often causes illness it can also lead to personal injury claims being made against employers in addition to or instead of an employment tribunal claim.  The personal injury claims are usually based on the employer having breached their statutory duty to look after the health and safety of the employee.

Quite apart from the legal consequences, employees who are not over stressed will be happier and more productive, and will be absent from work less often.

Stress Triggers

Stress in the workplace can be attributed to physical, psychosocial and organisational stresses from the job. Major life events, such as bereavement, divorce and financial troubles, in addition to the general pressures employees can experience in the workplace, could all have a significant impact upon their health causing an employee to become unwell with stress related illness.  Stress could result in employers losing key members of staff who can become sick in the long term with stress related illness if appropriate measures are not taken by the employer.

The Health and Safety Executive have identified six areas of work design that, if not carefully managed, have been shown to be associated with poor health and well being, lower productivity and increased absence among the workforce. These are:

      1)      Demands that are placed upon employees from the working environment and workload.

      2)      Control that the employees have for their own work.

      3)      Support from management and employees other work colleagues can have a substantial impact upon the way in which stress in the workplace is dealt with.  It is vital for the employee to feel valued and involved in the company to help raise morale.

     4)      Relationships within the corporation can help create a positive working environment and help deal with situations involving unacceptable behaviour.

       5)      Roles of employees must be clearly defined to ensure employees are aware of what their position within the corporation requires.

     6)     Change that can occur within the business must be carefully managed to ensure the employees do not resist such changes.  Communication between the employer and employees will be key in this area and keeping employees up to date with information will help make sure that the change taking place in the firm will be a success and supported by the workforce.

Research has found that over 75% of executives say that the stress related to work has a negative affect on the health and work performance of their employees.   The above suggestions from the HSE can be found on their website together with other helpful information in relation to stress, and in relation to the general statutory duty you have as an employer to look after the health and safety of your employees.

Risk Assessment – Worth the Hassle?

A risk assessment is required to be done for Health and Safety regulations. When the assessment is being carried out, in addition to physical risks it is important to take into account the levels of stress that activities may place upon employees. In doing the assessment the employer will need to identify the hazards, the people at risk, evaluate the risks and take measures that will be required to reduce the level of stress created by such activities. Some employers do not place enough importance on assessing stress levels in the workplace as they view them as a financial burden upon the company, and that only the employees would benefit. However, if such assessment practices have taken place in a firm, the employees may feel valued, which in turn could improve motivation among the workforce. Crucially if the employer faces a claim relating to workplace stress, the fact that this process of assessment has been undertaken can be used as evidence that care has been taken to minimise stress related risks that would help defeat a breach of duty claim against the firm, ultimately saving on vast litigation fees.

Stress Busting Policies

Company policies aimed at dealing with workplace stress can be most effective if carried out in an appropriate manner. To deal with the problem of stress, it would be advisable to consult the employees themselves to see how they feel about the issue. Often constructive and positive ideas can be put forward to the management team at these discussions and together in a partnership, employees and employers can evaluate potential ways to tackle the issues raised by agreeing to the actions to be taken and the goals which should be set out to be achieved. Moreover the consultation process itself will be appreciated by the employees which could have untold positive effects on the company and could reduce any negative barriers present between employers and employees.

Workplace bullying can cause a huge amount of distress to those directly and even those indirectly involved. This cost an employer dearly in a recent case in 2006, a high court judge awarded an employee £800,000 damages after she endured six years of workplace bullying, not a cost a company can afford to endure. Training staff to deal with hostile situations in the workplace, dealing properly with any grievances in relation to bullying or harassment, raising awareness and providing an anonymous reporting system within the company could help eradicate bullying and ultimately stop any costly claims against the business. The effect of the measures decided upon by the firm to tackle bullying should be monitored and reviewed over time to ensure the most appropriate methods are being used to make working at the company a pleasant experience.

Ensuring the employees have a good work/life balance is also an important factor when considering how the levels of stress that people feel with the workplace. This can be done by making sure that employees are taking all of their annual leave entitlement, and encouraging attendance of social events provided by the company, which in turn can have a great effect upon the ability of employees to operate as a team, often boosting performance for the company in the long term.

Furthermore, many companies are now providing “EAPs” or Employee Assistance Programmes for their employees, which often include a confidential helpline phone number that they can use to speak to expert counsellors in times of stress.  Providing something similar for your employees could be beneficial. The aim is to give the employees someone to talk to in confidence who they trust and who can help suggest ways that they can reduce the impact of stressful events that may be taking place within the company or from other external sources.

The availability to employees of an Employee Assistance Programme that allows access to trained and qualified counsellors offering impartial advice, can be an important factor for the courts in stress claims by employees when the courts come to consider the evidence as to whether an employer has complied with their legal duty to take care as to the health and safety of their employees. It is certainly not the case that having an EAP will release you from having to do anything further about employee’s stress, but it is good evidence that you have taken steps to reduce the risk of stress and that you take it seriously. In a recent Court of Appeal case, Sutherland v Hatton, a 16-point guidance plan was provided for employers to follow in stress related negligence claims. One of the points included in the guidance was that if an employer offered an EAP they would be much less likely to be found in breach of their duty.

Dealing with Stress in the Contract

“Stress” is not an illness in itself but can often lead to associated mental health conditions such as depression and anxiety disorders.  Unlike with a physical illness there are not necessarily any outward and visible signs of stress, therefore employers may from time to time be concerned as to whether employees are genuinely suffering from stress, or the associated mental health conditions. Employers might feel that the employee’s own GP has been too ready to simply sign the employee off on sick for a considerable period.  For this reason it is advisable for employers to have a clause incorporated in the contract from the beginning, by which the employee consents to the employer obtaining the opinion of an independent medical practitioner or occupational health specialist in the event of long term or repeated sickness absence, so that they can obtain an independent medical report to confirm what the employee and GP are saying. If there is no prior consent given in the contract and the employee then refuses to see an independent medical practitioner when it is suggested, there will be nothing the employer can do to obtain a second opinion.

It is also helpful to make any contractual sick pay absolutely at the employer’s discretion, or to make clear for what period of time contractual sick pay will be paid, after which point it is discretionary.

Dealing with stress in the workplace is a difficult issue for businesses and it should not be ignored. Be pro-active in the ways described above by considering stress in your risk assessments, by following the HSE suggestions, and by considering the introduction of an EAP.  For further advice as to the types of EAP cover available and the costs involved contact Joanne Wood at The Insurance Partnership (jwood@insurance-partnership.com)

If you are experiencing any issues with employee stress, or if you would like advice on taking further precautions for the future in relation to stress in the workplace, or indeed any other issues arising from employment matters, please do not hesitate to contact Sarah Coates-Madden scoatesmadden@sandersonssolicitors.co.uk or Elaine Carson ecarson@sandersonssolicitors.co.uk at Sandersons.

Tel:       01482 324662

Fax:      01482 223110

 August 2010