Workplace stress: A legal and ethical imperative for employers

April marks Stress Awareness Month, a timely reminder for employers to address workplace stress, not just as a productivity concern but as a legal and ethical responsibility. Stress in the workplace can lead to burnout, reduced efficiency, and increased absenteeism. However, beyond these operational challenges, failing to address workplace stress may expose employers to legal risks too.
The legal implications of workplace stress

Under the Health and Safety at Work Act 1974, employers have a duty of care to ensure the health, safety, and welfare of their employees. This includes taking reasonable steps to mitigate workplace stress.

Additionally, the Equality Act 2010 protects employees from discrimination related to mental health conditions that may, depending on the circumstances, qualify as disabilities. Failing to make reasonable adjustments for employees with disabilities could result in claims alongside allegations of unlawful discrimination, constructive dismissal, or personal injury. Doing the right thing, in compliance with the rules, and documenting this, are key to being able to defend any claims or complaints that may be asserted against a business.

Common workplace stressors and employer responsibilities

Stress in the workplace can arise from multiple factors, including:

  • Excessive workload and unrealistic deadlines
  • Poor management and lack of support
  • Unclear job roles and expectations
  • Workplace bullying or harassment
  • Job insecurity and organisational change

Employers should proactively identify and mitigate these possibilities. Risk assessments under the Management of Health and Safety at Work Regulations 1999 should include stress-related factors and ensure appropriate measures are in place.

Mitigating stress: Best practices for employers

To comply with employment law and foster a productive work environment, we recommend employers consider implementing the following amongst the range of steps that they may follow:

Conduct regular stress audits – Employers should assess workplace stress levels through employee surveys, one-on-one meetings, and risk assessments. Early identification helps prevent escalation.

Establish clear policies and procedures – Having a stress management policy ensures employees know their rights and where to seek support. A zero-tolerance policy on workplace bullying is also crucial.

Support employee well-being – Provide mental health training for managers to recognise signs of stress. Encourage a work-life balance, offering flexible work arrangements where possible. Implement Employee Assistance Programs (EAPs) for confidential mental health support.

Support employee well-being – Ensure reasonable adjustments are made where applicable and appropriate. For employees experiencing stress-related health conditions, employers should make reasonable adjustments where appropriate such as reduced workloads, additional breaks, or changes in responsibilities. Note that the duty under the Equality Act, where applicable, is to make “reasonable” as opposed to all/any changes and what is reasonable will depend on factors such as the size and resources of the organisation in question.

Foster a positive work culture – Encourage open communication about mental health without stigma. Recognise and reward employees for their efforts to reduce undue pressure. Promote team-building activities to enhance morale and collaboration.

Conclusion

Workplace stress is more than an HR challenge—it is a legal and ethical responsibility. Employers who fail to manage stress effectively risk not only employee dissatisfaction and turnover but also legal repercussions under UK employment law. By taking proactive steps, businesses can create a supportive work environment, reduce absenteeism, and enhance overall productivity—ensuring compliance while prioritising employee well-being.

At Tees, our Employment Law team can conduct a comprehensive audit of your HR systems to ensure they are fair, reasonable, and compliant with legal obligations. By reviewing workplace policies, risk assessments, and stress management procedures, we help safeguard employee well-being while protecting your business from potential legal risks. Our expert team can identify areas for improvement, implement best practices, and ensure your policies align with employment law standards—creating a healthier, more resilient workplace.

This Stress Awareness Month, take action to safeguard your workforce. A healthier workplace is a legally sound and more successful one.

What next for equal pay?

Landmark legal victory for next employees in equal pay case

Following a six-year legal battle, over 3,500 current and former Next employees have secured a major win in their Employment Tribunal complaints for equal pay. The ruling may result in Next paying up to £30 million in back pay. Despite the retailer’s intention to appeal, the decision could have wide-reaching consequences for other UK employers.

The wider impact on major retailers

This legal victory marks the first of its kind against a national UK retailer. Other major supermarkets, including J Sainsbury’s Plc, Tesco Plc, W Morrison Supermarkets Ltd, Asda Group Ltd, and Co-operative Group Ltd, face similar claims from 112,000 workers. If these claims succeed, the financial ramifications could amount to billions of pounds.

The basis of the claim: Pay disparity between shop and warehouse staff

The central issue in this case was the pay gap between predominantly male warehouse staff and mostly female shop staff. Next argued that wider market forces justified the disparity, maintaining that warehouse operators earned higher salaries due to industry standards. However, the Tribunal rejected this defense, stating that cost-saving measures did not justify the discriminatory effect.

Equal pay and the concept of equal value

A critical element in the case was the determination of whether shop and warehouse staff performed work of equal value. The Tribunal concluded that retail staff work was of comparable value to that of warehouse employees, leading to the decision that Next was required to provide equal pay.

Key factors in establishing equal value
  • Gender disparity: 77.5% of retail consultants were female, compared to 52% of warehouse employees being male.
  • Independent assessment: Equal value is determined through independent expert analysis, comparing the responsibilities, effort, and skill of both roles.
  • Tribunal’s role: Even minor differences in tasks can be disregarded if they are deemed insignificant in the overall comparison.

Lessons for employers: Mitigating equal pay risks

This ruling serves as a stark reminder for employers to assess their pay structures. Companies should ensure that roles of equal value receive equal pay, preventing the risk of costly litigation.

Practical steps for employers
  1. Conduct regular pay audits: Review and compare salaries across different roles to identify disparities.
  2. Ensure transparency: Maintain clear documentation on how pay decisions are made, using objective criteria.
  3. Provide justifiable explanations: Base pay differences on legitimate factors such as experience, qualifications, and market rates.
  4. Promote equal opportunities: Encourage career development for all employees, removing barriers to advancement.
  5. Seek legal guidance: Consult legal professionals to ensure compliance with equal pay regulations.

The ongoing battle for Next employees

While the ruling is a significant milestone, the journey is far from over. With Next pursuing an appeal, employees face further delays and legal complexities. The case underscores the challenges of achieving equal pay justice and the importance of robust legal support.

Employers should view this ruling as a wake-up call to proactively address pay equality. Taking preventative measures now can mitigate legal exposure and foster a fairer, more equitable workplace.

For tailored legal advice on equal pay compliance, contact our team of experts today.

Employment tribunal: A guide for employers

If not managed effectively, workplace conflict can be hugely costly for employers and lead to employment tribunal claims. According to new research from ACAS, nearly 10 million people experienced conflict at work in 2018/19. As a result, close to 900,000 took time off and nearly half a million resigned. In addition, 300,000 employees were dismissed due to conflict. According to the report, the management and resolution of such conflicts costs employers a staggering £28.5 billion every year. However investment in early intervention and measures to promote effective resolution of disputes can save businesses time and money and reduce the risk of potentially damaging litigation.

What are common reasons for employment tribunal claims?

Common claims include:

  • unfair dismissal
  • disputes relating to redundancy
  • breach of contract
  • discrimination (for example on the grounds of disability, gender, race, sexual orientation or other protected characteristic)

Managing conflict in the workplace: How to avoid a legal dispute

If workplace issues are not dealt with promptly, they may escalate rapidly and result in legal claims against you. According to a CIPD survey, one key thing employees want from their employers when they raise an issue is simply to be listened to.

Just under a third (31%) of respondents to the survey said their employer didn’t take them seriously when they raised an issue, while nearly half (48%) said they felt their employer had prioritised the other party’s interests over their own.

Listen

One of the most important things you can do is take issues raised seriously and give any employee who is angry or frustrated the time they need to talk about what has happened. Speaking with them privately, actively listening to their views and acting upon the complaint swiftly can be key to preventing disputes and conflict from intensifying.

If a formal grievance procedure or disciplinary process is required to effectively deal with the matter, then it should be initiated as appropriate with careful regard for your internal procedures and ACAS Code and guidance as applicable.

Take advice

Employers should take professional HR and legal advice at an early stage to ensure they can make informed choices about how to manage conflict and disputes effectively and in accordance with current employment law requirements. Employers may unwittingly fall foul of the law when they fail to seek legal advice, for example behaving in a way they do not realise may be discriminatory.

Having an employment law solicitor on hand who has an in-depth understanding of the complexities of your case can go a long way to solving grievances before they have a chance to escalate. Even if the relationship between the parties breaks down, legal professionals will ensure you conduct yourself in a way that gives employees few grounds for taking their complaint further.

Be fair

It is imperative that you can demonstrate a fair process has been followed when dealing with the dispute or grievance and that any decision makers consider matters objectively and based on the evidence before them. Your solicitor can advise you on how best to deal with the issue in a neutral and unbiased manner.

Keep a paper trail

Whether you are investigating a grievance, initiating disciplinary proceedings against an employee or dismissing a staff member, you should keep a clear paper trail as evidence. This includes records of meeting invitations and detailed notes of what was said, in addition to any emails sent or received.

If the case does proceed, you will be able to provide hard evidence that you have acted appropriately.

What happens if I am taken to an employment tribunal?

To submit a claim, your employee will normally first have to notify ACAS that they intend to do so. They will try and help you resolve the issue through a process called early conciliation, whereby they support both parties to negotiate settlement terms. I f neither party wants to attempt early conciliation, or the process fails, then your employee can then submit an ET1 claim form to which you will have 28 days to respond with your defence.

Our employment law solicitors have many years’ experience in helping employers respond successfully to claims, assisting them to prepare the documentation and evidence needed to respond to the claim and representing them at hearings.

Should I offer my employee a settlement agreement?

settlement agreement (formerly known as a compromise agreement) can be used to resolve a dispute and allow all parties to draw a line under matters and part company on a dignified basis.

The agreement typically offers your employee a severance payment in exchange for their agreement not to take any further legal action against you. However, it is important to take legal advice to ensure this is a viable option in the circumstances and how best to make an offer as you may otherwise prejudice your position.

If you offer a settlement agreement without following the right process, and your employee rejects it and goes on to make a claim anyway, any conversations you had regarding the settlement agreement can potentially (but not always) be used as evidence against you.

What are the types of employment tribunal hearing?

There are two main types of hearing:

Preliminary hearing: this is usually a short hearing to address any issues so that the case can proceed smoothly before a full hearing, this may include:

  • clarifying the issues in the case
  • establishing what documents and or witnesses are required
  • deciding questions of entitlement to bring or defend

Full hearing: is when all the evidence is heard:

  • decides whether the claim succeeds or fails
  • and, if it succeeds, what remedy is appropriate

What happens when a grievance is upheld at an employment tribunal?

The tribunal will order specific steps to be undertaken at a ‘remedies’ hearing. This could include:

  • reinstating your employee
  • paying out compensation
  • paying for loss of earnings/damages

If you fail to take these steps, you can be taken to court and forced to comply. Usually, though not always, the parties bear their own costs.

It is important to remember that the likelihood of winning is greatly increased with professional legal support.

Supportive employment law professionals

Whether you are looking for support in getting the correct policies and procedures in place, or dealing with a formal grievance, we can help. We know that every case is different, so our advice will be tailored to your circumstances.

If you are in a dispute with an employee, you need to ensure things are dealt with without delay. Taking legal advice promptly could mean the difference between winning your case and damaging your business’s reputation.

Give us a call for a confidential discussion about how we can help you defend yourself, your business and your reputation.