The Health and Safety Authority (HSA) broadly defines stress as “the negative reaction people have to aspects of their environment as they perceive it” and work-related stress occurs when a person perceives the work environment in such a way that his or her reaction involves feelings of an inability to cope. This reaction may be caused by perceived or actual workload pressures or other anxieties within the workplace which can lead to burnout and, ultimately, disengagement if left unmanaged. 

In an ever-evolving world, there are many factors that can cause stress to an individual. A recent mental health survey noted that economic factors, the impact of international conflict and housing were noted as the greatest concerns facing Irish adults in 2025. 2026 has further increased uncertainty for workers with continuing international tensions, wider adoption of AI and increases to costs of living. 

Against this backdrop, it is not surprising that stress levels are rising with the Irish Life’s Health of the Nation Report 2025 showing that 29 per cent of respondents feeling anxious or stressed more than half the time while 19 per cent report feeling sad or depressed just as often. The fall out from such statistics will likely be felt across workplaces in Ireland. Ahead of World Mental Health Day on 10 October 2026, we explore how employers can pro-actively address mental health concerns to combat against such effects.

Organisational Impact

Nearly 24 per cent of employees reportedly took leave for mental health reasons  last year which is higher than the European average of 18 per cent. Mental health issues are proven to have a direct impact on staff morale and productivity. Given the cost of poor mental health is estimated to be approximately €2,000 per employee annually, ultimately, it all hits the employer’s bottom line.

In addition to the direct financial impact, a workplace with poor (or which lacks) mental health supports will have greater staff attrition rates and reduced attractiveness to new talent. Employees are increasingly expecting their employers to care about and actively support their mental health. Employee wellbeing is becoming a top priority for employers who recognise the advantages (both financial and otherwise) of having an engaged and satisfied workforce. In this regard, it is heartening to note that 43 per cent  of employees surveyed feel their organisation actively undertakes initiatives to support mental health.

2. The legal framework

2.1 Safety, Health and Welfare at Work Act 2005

Section 8 requires every employer to ensure, so far as is reasonably practicable, the safety, health and welfare at work of its employees. This includes preventing improper conduct or behaviour likely to put employees at risk, providing safe systems of work, and providing necessary information, training and supervision. The HSA Annual Report 2025 is clear that increased focus is being placed on psychosocial risks such as workplace stress and bullying and these risks must also be assessed and appropriate mitigation measures addressed in the Safety Statement. Breaches can lead to prosecution, fines as well as expensive personal injuries claims.

2.2 Employment Legislation

It is well established that mental health conditions fall within the definition of “disability” under the Employment Equality Acts 1998-2015 and therefore an employer has a legal duty to provide reasonable accommodations for employees suffering from conditions such as stress or burnout unless doing so would impose a disproportionate burden.

Appropriate accommodations will differ from person to person but examples such as flexible or remote working, reduced workloads or distributing tasks are measures which can be taken by employers. Failure to address employee’s workplace concerns can also result in a fundamental breakdown of the employment relationship leading to a claim for constructive dismissal.

The costs of non-compliance can be significant. Compensation of up to two years’ remuneration can be awarded and employers can be ordered to take specific actions. Employers should also ensure to follow the maximum daily and weekly working hours as well as mandated rest breaks under the Organisation of Working Time Act 1997.

2.3 Codes of practice

Codes of practice are not legally binding, but they are admissible in evidence and tribunals will measure employers against them. We recommend employers abide by the key codes which are:

• Code of Practice on the Prevention and Resolution of Bullying at Work (HSA/WRC, 2020): expects a clear anti-bullying statement, trained contact persons, informal resolution where possible and proper records.
• WRC Code of Practice on the Right to Disconnect: covers the right not to routinely work outside normal hours, not to be penalised for refusing, and to have that right respected by colleagues.
• WRC Code of Practice on the Right to Request Flexible and Remote Working: guidance on handling requests under the Work Life Balance and Miscellaneous Provisions Act 2023.

2.4 Lessons from the WRC and Labour Court

Failure to meaningfully address employee mental health concerns can expose employers to costly litigation and reputational risk. The following WRC decisions show where employers can fail in their legal obligations towards employees: 

• General Operative v Manufacturer of Medical Devices DEC-2017-018: an employee commenced sick leave due to stress and anxiety arising from personal circumstances. After 157 days of absence, she was dismissed from her employment. The WRC found that the employer did not genuinely explore any reasonable accommodations that could have prevented her dismissal such as keeping her position open longer or facilitating a part-time return. The respondent was ordered to pay €23,000 compensation, review potentially discriminatory contractual clauses and provide management training on equality obligations.
• Kepak Convenience Foods v Grainne O’Hara (DWT1820): an employee regularly worked over 60 hours a week. Kepak was aware of her work patterns and late night emails but did not take any action to monitor or curtail it. The employee was €7,500 was awarded for breaches of the working time legislation.
• A Worker v A Policing Service (IR-SC-00005289): management’s “prolonged lack of engagement” with an employee suffering work-related stress led the WRC to recommend €10,000 compensation and require her grievances to be addressed within 42 days.

3. Spotting the early warning signs

Early identification of mental health struggles is the most effective way to stop pressure turning into long-term absence or a claim. Employers should watch for:

• Individual signs: irritability, withdrawal, loss of confidence, long hours or late-night emails, frequent short absences, errors or missed deadlines, and loss of interest in work.
• Team signs: rising absence, turnover, clusters of grievances or conflict, persistent overtime, unused leave and falling survey scores.

A prudent employer will also regularly review staff attrition rates, conduct exit interviews and staff surveys to increase engagement in the workplace and flag issues at an early stage.

Managers who work with employees day to day should receive training in managing mental health concerns. If they suspect an employee is struggling, they should:

• engage early with a welfare check and listen to the employee;
• escalate to HR or occupational health where appropriate;
• manage workload actively by prioritising and redistributing work;
• respect boundaries and avoid routine out-of-hours contact; and
• keep records of issues faced by employees and measures taken by the employer.

Train all managers to apply the policies and recognise mental health issues, give them conversation guides and templates, and support their own wellbeing too.

4. Culture and leadership

Surveys show that 47 per cent of people with mental health difficulties in 2025 did not seek treatment due to stigma or embarrassment. It is essential that employees feel their concerns will be handled confidentially and without penalisation. This starts with a culture where leadership speak openly about wellbeing and mental health without judgement and includes actions such as:

• modelling healthy behaviour by taking leave, leaving work on time and not emailing late at night;
• offering mental health awareness training and appointing peer support or mental health champions to keep workplace well-being at the forefront of the organisation;
• promote Employee Assistance Programmes, and well-being initiatives to staff; and
• including people-management behaviours in managers’ objectives and consult staff on wellbeing measures.

5. Practical policies and procedures

5.1 Risk assessment

It is important (and legally required) to have appropriate systems to monitor working patterns for staff (including remote work) so that red flags such as late-night working and high levels of unused leave can be followed up and addressed. Risk assessments for psychological hazards should be carried out and mitigated where possible. The HSA’s free Work Positive CI tool (www.workpositive.ie) is a confidential way to identify sources of stress and build an action plan. Cover workload, hours, role clarity, control, relationships, bullying and change, and review at least annually.

5.2 Key policies

• Wellbeing policy: a clear, confidential route for raising concerns or requesting accommodations through a trusted contact person.
• Bullying and harassment policy (including sexual harassment) with a clear statement that bullying and harassment is not acceptable.
• Right to disconnect policy: “send later” email defaults and instructions that out-of-hours contact should be occasional.
• Flexible working and reasonable accommodation: Handle flexible and remote working requests in line with the WRC Code of Practice. Where a request is linked to a mental health condition, also consider it as a reasonable accommodation. Consult the employee and consider their proposals. Useful measures include reduced or flexible hours, remote working, a phased return, temporary reallocation of tasks and clearer written priorities. Document every consultation and the reasons for any decision.

5.3 Absence, performance and discipline

• Keep supportive contact during sick leave and plan the return to work.
• Refer to occupational health where appropriate, asking specific questions about fitness and adjustments.
• Do not start performance or disciplinary processes where mental health may be a factor without first consulting the employee, assessing risk and taking occupational health advice.

Staying positive

Supported employees are happier, more fulfilled and perform better. A proactive, holistic approach to mental health protects both businesses and employees, supporting productivity, retention and business success.

Jacqueline Ho is managing knowledge lawyer and Megan Hurley is associate at Lewis Silkin Ireland.