For employers, this highlights a growing legal risk – particularly at a time when many businesses are under pressure to operate with reduced resources and leaner teams.
Stress-related claims are more common than many employers realise
Our analysis of 9,850 Employment Tribunal claims found that 1,185 involved stress in the workplace. Many of these claims were brought by former employees alleging unfair dismissal, often where stress had contributed to declining performance.
Stress-related issues can also overlap with disability discrimination claims. In these cases, employees argue that their employer failed to recognise, investigate or properly address work-related stress.
Why stress is becoming a bigger workplace issue
Businesses often respond to economic uncertainty by reducing staffing levels to manage rising costs. This often results in increased workloads and pressure on remaining employees.
Combined with any existing personal and financial pressures, this can quickly result in an employee suffering from stress. High stress levels in the workplace are commonly associated with reduced productivity and lower morale, which in turn can lead to increased staff turnover.
Where stress begins to negatively affect an employee’s performance, some employers will move to informal performance management or begin investigations before a disciplinary process commences. Without careful handling, this approach can significantly increase legal risk.
When stress may be classed as a disability
While not all workplace stress will amount to a disability, employers need to be aware that stress can, in some circumstances, amount to a disability under the Equality Act 2010. This may be the case where stress has a substantial impact on an individual’s ability to carry out normal day-to-day activities and has lasted, or is likely to last, 12 months or more, or is likely to recur.
Where this threshold is met, employers have a legal duty to make reasonable adjustments. These may include:
- Reducing workloads
- Adjusting targets or responsibilities
- Providing additional support or flexibility.
Failing to take these steps can expose employers to disability discrimination and unfair dismissal claims.
What employers can do to reduce risk
Legal risk can arise where stress is not properly identified or managed. Early intervention is key.
Practical steps may include:
- Recognising early warning signs of stress
- Investigating underlying causes of stress
- Considering medical input where appropriate
- Keeping adjustments and support under regular review.
With many businesses continuing to restructure in response to economic pressures, stress-related disputes are likely to remain a concern. Taking proactive steps now can help protect both employees and the organisation.
How TWM can help
TWM Solicitors advises employers on how to manage workplace stress, performance issues, and the legal risks that can arise when the two meet.
Our Employment Law team supports businesses with risk management, reasonable adjustments, and dispute prevention, as well as defending Employment Tribunal claims if they arise.
If you would like advice on managing stress in the workplace, or reducing the risk of employment disputes, please contact our Employment Law team for clear, practical guidance.
