Workplace Stress & Burnout

Workplace stress claims arise when an employer's failure to manage work-related stress causes a recognised psychiatric injury to an employee. Following the Court of Appeal's guidelines in Hatton v Sutherland (2002), employers have a duty to take reasonable steps to prevent foreseeable psychiatric harm.

The key legal question is foreseeability: was it reasonably foreseeable that the employee would suffer a psychiatric injury? Warning signs include the employee telling management they cannot cope, previous stress-related absences, known excessive workloads, and failure to act on occupational health recommendations.

Common scenarios include excessive workload without additional resources, bullying or harassment by managers or colleagues, failure to address grievances, unreasonable targets or deadlines, lack of support during organisational change, and failure to implement occupational health recommendations.

The claimant must prove they suffered a recognised psychiatric injury (clinical depression, anxiety disorder, PTSD, adjustment disorder) — not just general unhappiness or dissatisfaction. Medical evidence from a psychiatrist is essential.

Compensation depends on the severity and duration of the psychiatric injury. Mild psychiatric injury typically settles for £5,000 to £20,000. Moderate psychiatric injury ranges from £20,000 to £60,000. Severe psychiatric injury with significant impact on ability to work can reach £60,000 to £250,000. Loss of earnings can substantially increase the total claim. The limitation period is 3 years from the date of knowledge.