New laws are forcing employers to wake up to the financial risks of workplace stress. Mark London reports on the theory and practice of risk assessment
The latest survey from the Health & Safety Executive found that 563,000 British people suffered from work-related stress, depression or anxiety in 2001/2002. The HSE also estimates that British industry lost more than £370m in this period as a direct result of stress in the workplace – and that the same amount of money continues to be lost on an annual basis.

The HSE has tried to crack down on those employers who are not doing enough to tackle workplace stress and its repercussions. The most recent move was the HSE's enforcement notice in early August against West Dorset Hospitals Trust. The notice was issued because the HSE took the view that the trust was taking insufficient steps to combat stress levels among its doctors and nurses, several of whom had complained to the HSE. West Dorset has been given until 15 December to assess its staff stress levels and to implement an employee programme for occupational stress management.

The HSE's move is important for all public and private-sector employees. Housing is no exception, with high stress levels in many of the jobs in this sector, as local authorities and housing associations will know.

The law
Stress can manifest itself in many different ways, and a stressful event for one person may be routine for another, leaving it hard to define. Nevertheless, the HSE has qualified stress as "the adverse reaction people have to excessive pressures or other types of demand placed upon them".

Employers have a legal obligation to recognise and manage occupational stress.

The 1974 Health and Safety at Work Act forces employers to ensure, as far as is practical, the health, safety and welfare of employees at work. Although the act itself makes no specific reference to mental health or the management of stress, these clearly fall within the definitions of both health and welfare.

The 1999 Management of Health and Safety at Work Regulations make it clear that employers must take into account the risk of ill-health or unsafe working practices that may be caused or exacerbated by stress.

And, if an employer fails to comply with its duties under health and safety legislation, this can lead to exposure to other claims such as constructive unfair dismissal or disability discrimination.

Risk assessment
The 1999 regulations ensure that employers investigate and assess all possible risks to health in the workplace, including stress. This is known as risk assessment and employers should make sure that occupational stress is properly dealt with, in written form.

Evidence that an employer does not care about occupational stress would assist any employee intending to bring an action for damages

There are many ways in which an employer can assess the risk of occupational stress. These include taking account of:

  • the physical environment in which the work takes place
  • the nature of the work, including the hours and the level of output demanded of an employee or group of employees
  • associated factors such as travel time
  • the level of support provided.

This list is not exhaustive and employers should seek advice on what is required for the occupational stress element of the assessment. Any failure to properly assess the risks of occupational stress is likely to cause the employer difficulty on two fronts.

It can be construed as evidence that an employer does not care about occupational stress. This would assist any employee intending to bring an action for damages in negligence for personal injury from stress.

Also, lack of a risk assessment is a prima facie breach of an employer's obligation under the act. Following a complaint and investigation, the HSE is more likely to issue an enforcement notice or bring a prosecution if there is no proof of the employer's recognition of occupational stress.

Managing occupational stress
Once a risk assessment has been done and the risks, if any, identified, employers must do their best to manage and reduce these risks. There are a number of stress management techniques available to employers.

In addition to carrying out a risk assessment, employers should make it clear within their health and safety policy that they recognise occupational stress and are committed to dealing with it. How occupational stress is dealt with is a matter for each employer and will depend on the particular circumstances of each case.

The risks of occupational stress need to be carefully considered and dealt with in accordance with the health and safety legislation and other employment law.