£1m cost of not acting on stress warnings
A recent High Court decision highlights the serious legal consequences for employers who fail to respond properly to employee stress concerns.
In Duffy v Jockey Club Racecourses Ltd, a former marketing manager was awarded more than £990,000 after the Court found his employer breached its duty of care and caused a psychiatric injury.
Following an internal restructure, the claimant’s workload increased significantly. The court heard that he repeatedly raised concerns about the pressure he was under and the impact it was having on his health. Despite these warnings, the judge found the organisation did not take adequate steps to investigate or mitigate the risk.
Deputy High Court Judge Elizabeth O’Neill concluded that psychiatric harm had become reasonably foreseeable, meaning the employer was under a duty to take reasonable steps to prevent injury.
Stress risk assessment
Those steps could have included reviewing workload, conducting a stress risk assessment, or seeking occupational health advice. None were meaningfully implemented. Even though many employers appear not to know it, a stress risk assessment is a very easy tool to use to help mitigate risks – read more in our free guide.
The case was brought as a civil negligence claim, but it also serves as an important reminder that psychological safety is not just an HR issue or a matter of discrimination law.
Under the Health and Safety at Work etc. Act 1974, employers have a legal duty to ensure, so far as reasonably practicable, the health, safety and welfare of employees at work. This duty explicitly includes mental health. The Health & Safety Executive has also begun investigating the issue with large employers recently too.
Unlike claims under the Equality Act 2010, breaches of health and safety law can lead to criminal enforcement by the Health and Safety Executive, including prosecutions, unlimited fines, and in serious cases director liability.
For HR leaders, the lesson is clear: when employees raise concerns about workload or stress, organisations must respond proactively. Documented risk assessments, reasonable adjustments and occupational health input are not just good practice, they form part of an employer’s legal duty to protect both the psychological and physical safety of their workforce.
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