The stats on mental health in New Zealand make for grim reading.  1 in 4 New Zealanders have poor mental wellbeing.  1 in 5 are either always or often stressed by work.  64% of organisations report that stress is increasing.

The cost to business is staggering.  In 2020, the economy lost 7.3 million working days and $1.85 billion due to work absences.

The Health and Safety at Work Act 2015 specifically applies to physical and mental health.  Employers must take proactive steps to avoid harm to their employees’ mental health.  This means identifying hazards to mental health and either eliminating them completely or minimising them as far as is reasonably practicable.  

Bullying, harassment, discrimination, poor management practices, stress and overwork are all examples of hazards that can cause genuine and serious harm to the mental health of employees.  Employees suffering from mental health issues may not perform or behave appropriately.  Formal disciplinary and performance management processes aimed at trying to address this can be ineffective and even make things worse. 

Failure to identify and manage mental health risks can lead to claims by employees and even possible prosecution.  There are also the everyday business and human costs of absenteeism, increased staff turnover, low morale, and reduced productivity.  It pays to get this right.

None of this is easy, however.  The sheer range of hazards to mental health and the extent of employer obligations can seem overwhelming.  

Employers do not have to cocoon their employees from the stress and normal challenges of work.  Employees must also take steps to ensure their own health and safety at work.  Employers are required however to take all reasonably practicable steps that are proportionate to any known and avoidable risks to mental health.  What that involves in any given scenario will vary in the circumstances.  

Some practical and necessary steps that all employers should take include:

  • Having robust polices aimed at protecting employees’ mental health.  The policies need to be followed however and not just left in a drawer somewhere. 
  • Taking positive action to address mental health concerns as soon as they emerge.  This needs to be handled with care however as mental health is a high-risk area and ripe for dispute. 

The dedicated employment and health and safety team at Corcoran French can help both employees and employers in dealing with workplace mental health.