The effective management of workplace stress is becoming more and more important for employers for two main reasons :

We are living in more litigious times and employees are now more likely to sue their employers than ever before; and
it is estimated that out of the 40 million working days lost as a result of illness and injury in 2001/02, 13 million were lost due to stress, anxiety or depression.

In addition to the legal and economic reasons outlined above, employers have an ethical duty to look after the mental health of those people working for them.

The Health and Safety Executive defines work-related ‘stress’ as ‘the adverse reaction people have to excessive pressures or other types of demand placed on them’. It can, however, be difficult for employers to determine exactly what sort of pressures at work are risky. Some people react to pressure far better than others – it is the employee’s reaction to the demand’s placed on him or her which will determine whether he or she will be affected by workplace stress.

According to the Health and Safety Executive there are 7 broad categories of risk factor for work related stress:

1. the culture of the employer's organisation
2. the demands placed on employees
3. the amount of control employees have over the manner in which they perform their work
4. relationships at work - eg bullying and harassment
5. the manner in which change is managed and communicated
6. an employee's understanding of his or her role
7. support, training and factors relating to the individual employee

Under the Management of Health and Safety at Work Regulations 1999 an employer is obliged to carry out an assessment of the risks to health and safety that his employees are exposed to at work. Such an assessment should include an analysis of the risks to the employees' psychiatric health caused by stress at work.

A risk assessment should:

1. identify the hazards
2. work out who might be harmed and how
3. evaluate the risk by identifying the action already being taken to combat stress at work and determine whether it is sufficient and decide whether more should be done
4. record the significant findings of the assessment
5. review the assessment at appropriate intervals

In view of the risks to employers, both financial and legal, it can therefore be very useful for employers to introduce stress policies. A good stress policy will set out the definition, causes and effects of stress at work and lay down the responsibilities of the employer, managers, safety representatives and employees with regard to tackling the problem.

Caroline Walker 020 7264 4385 carolinew@sghlaw.com