Can You Claim Compensation for Workplace Stress in the UK?

emily gordon brown
Emily Gordon BrownLegal Assessment Specialist @ Lawhive
Updated on 24th October 2024

Workplace stress is becoming a highly discussed issue in today's world. When left unchecked, excessive stress can have detrimental effects on employees' physical and mental health. Decreased productivity, absence from work, and even burnout are just some of the most common effects. In this guide, we'll cover workplace stress and claiming compensation. You'll learn:

  • The legal criteria for workplace stress claims

  • Types of claims and how to prove your case

  • Best practices for employees to follow

  • Legal and regulatory considerations

Stress at work claims require meeting specific legal criteria, including a formal diagnosis of a recognised psychiatric condition caused by work-related stress. Additionally, employers have a duty to protect their employees' mental well-being, and failure to do so could result in liability if it leads to psychiatric harm.

Diagnosis of a Psychiatric Injury

To claim compensation, employees must have a diagnosis of a recognised psychiatric illness such as depression, anxiety, or Post Traumatic Stress Disorder (PTSD). The illness must have resulted from workplace stress placed on the complaint. General stress without a formal diagnosis is insufficient to pursue a claim. 

You must legally prove that you have not only suffered workplace stress but that the stress meets the clinical criteria for a recognised psychiatric condition. If this is successfully proven, you may be able to claim compensation, known as general damages.

Employer’s Duty of Care

Employers are legally required to take reasonable steps to protect the mental well-being of their employees. If an employer fails to do so and workplace stress leads to a psychiatric injury, this may constitute a breach of duty. Examples include failing to reduce excessive workloads, ignoring reports of bullying, traumatising work conditions, mishandling disciplinary procedures, or not providing adequate support.

In the UK, the Hatton v Sutherland case sets the rules for how much employers must do to protect their workers from stress. The court outlined five factors to consider when determining whether an employer has breached this duty:

  1. Foreseeability of Harm: Was it reasonably foreseeable that the employee's work could cause stress-related harm?

  2. The Magnitude of the Risk: How significant was the risk of harm to the employee?

  3. The Gravity of the Harm: How serious could the potential harm be to the employee?

  4. Cost and Practicability of Prevention: Could the employer have taken reasonable steps to prevent the harm at a reasonable cost?

  5. Justifications for Running the Risk: Were there any legitimate reasons for the employer to take the risk, such as business necessity or the employee's consent?

Types Of Claims

There are various types of claims individuals can make depending on the circumstances. These claims may involve personal injury, employment disputes, or contractual issues, each requiring specific legal grounds and evidence.

  • Personal Injury Claims: Employees can file personal injury claims for workplace stress in the civil courts if they can demonstrate that their psychiatric condition resulted from work-related stress. Compensation typically covers medical costs, lost wages, and general damages for pain and suffering. Other than this, stress-related mental health conditions, such as anxiety or depression, can also be grounds for a personal injury claim.

  • Employment Tribunal Claims: An employment tribunal is a judicial body that resolves disputes between workers and employers. It constitutes a key part of the judicial system and is responsible for workplace justice. Employees may also pursue claims in an employment tribunal for issues such as workplace discrimination, constructive dismissal, or harassment, where workplace stress plays a role.

  • Breach of Contract and Negligence claims: If the employment contract includes specific terms related to stress management or working conditions, and the employer breaches these terms, the employee may have a claim for breach of contract. Employers also have a duty of care to their employees. They may be liable for negligence if they fail to take reasonable steps to prevent stress-related harm.

Proving Your Case

Proving your case is a critical part of any legal claim. It requires presenting strong evidence to support your argument and demonstrating that the facts align with the legal requirements. 

Gathering Evidence

The claimant must provide medical records, documentation of work conditions, and communications with their employer that demonstrate the link between workplace stress and the psychiatric condition. Witness statements from colleagues can also help establish the work environment.

Gathering evidence, obtaining medical reports, and consulting with a legal professional or employment law solicitor are crucial steps. The specific type of claim will depend on the individual circumstances and the nature of the stress-related harm.

Time Limits

Claims for workplace stress must generally be made within three years of the injury being diagnosed. Employment tribunal claims are usually filed within three months of the incident. 

  • Personal Injury Claims: Claims must be made within three years. However, there are specific limitation periods for different types of injuries, such as those caused by industrial diseases or occupational illnesses.

  • Constructive Dismissal: Claims for constructive dismissal must be brought within three months of the employee's resignation.

  • Negligence: Professional negligence claims must be brought within three months of the employee's resignation.

  • Discrimination: Discrimination claims must be brought within three years of the employee's resignation.

  • Breach of Contract: Breach of Contract Claims must be brought within six years of the employee's resignation. 

It's important to note that these are general time limits. Extensions or exceptions may be granted in certain cases.

Best Practices for Employees

Adopting best practices can help employees protect their rights and well-being in the workplace. This section will highlight key strategies employees can follow to safeguard themselves.

Employees should seek medical attention early if they experience stress and legal advice if they believe their employer has breached their duty of care. A healthcare professional can assess your condition, provide appropriate treatment, and issue necessary documentation to support your claim. Prioritising your health should be the most important thing to you.

Furthermore, consider consulting a lawyer specialising in employment and workplace stress-related claims. They can advise you on your legal rights, help you understand the evidence required to build a strong case and represent you in legal proceedings if necessary.

Keep Records

Maintain a detailed record of incidents or events contributing to your stress, including dates, times, and specific details. Also, keep copies of any emails, letters, or other correspondence related to your stress or your employer's response. Gather any medical reports, doctor's notes, or prescriptions that support your claim of stress-related illness or injury. And finally, obtain and secure statements from colleagues or others who can corroborate your experiences of workplace stress.

Legal and regulatory considerations are crucial for ensuring compliance and protecting rights in various situations. 

Health and Safety at Work Act 1974

(HSW Act) is a cornerstone of workplace health and safety legislation in the United Kingdom. This act requires employers to ensure their employees' health, safety, and welfare, including protecting them from excessive stress. It also mandates employers to provide a safe and healthy working environment. If stress is being caused by harassment or discrimination linked to a protected characteristic, then the Equality Act 2010 (the Act) may be the appropriate legal avenue.

FAQs

Can I claim compensation if I haven’t been diagnosed with a psychiatric illness?

It is possible to claim compensation even if you haven't been formally diagnosed or sought medical attention. However, the likelihood of success will depend on the circumstances of your case and the other evidence available. Also, If you can successfully demonstrate that the stress caused physical or mental harm, you may have a valid claim.

How much compensation can I claim for workplace stress?

The amount you can claim as compensation for workplace stress will depend on the severity of your injury or illness, its impact on your life, and the evidence you can provide. It's important to consult with a legal professional for a clearer understanding of your potential compensation.

What should I do if my employer refuses to address workplace stress?

If your employer refuses to address workplace stress, you may have grounds for a claim. Document any stress incidents, keep records of your communication with your employer, and seek medical advice if your health is affected.

Do I need to quit my job to file a claim?

No, you do not need to quit your job to file a claim for workplace stress. However, constructive dismissal may be an option if your employer continues to create a hostile working environment.

How long does it take to resolve a workplace stress claim?

The length of time it takes to resolve a workplace stress claim can vary depending on the complexity of the case and the legal process involved.

Conclusion

Addressing workplace stress is essential for employee’s well-being and the overall health of an organisation. When stress becomes overwhelming and leads to mental health issues, seeking professional help and building a strong compensation case becomes essential.

Lawhive's employment law experts can provide personalised advice and guidance on pursuing a workplace stress claim. Our team of experienced professionals can help you assess your case, gather evidence, and navigate the legal process. Don't hesitate to contact us for a consultation.

References

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