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Workplace dispute

Workplace Stress and Mental Harm

What It Is

Workplace stress and mental harm occur when an employer’s actions, omissions, or unsafe practices cause or contribute to psychological harm.
This may include bullying, excessive workloads, inadequate support, or exposure to traumatic environments.

Employers in New Zealand have a legal duty to protect both physical and mental wellbeing under the Health and Safety at Work Act 2015 (HSWA 2015) and to act in good faith under the Employment Relations Act 2000 (ERA 2000).

If you have experienced burnout, anxiety, depression, or other harm due to work conditions or employer neglect, you may be able to raise a personal grievance or a health and safety complaint.

Your Rights and the Law

  • HSWA 2015 s 36(1)(a) — Employers (Persons Conducting a Business or Undertaking, or PCBUs) must ensure, so far as reasonably practicable, the health and safety of workers, including mental health.
  • ERA 2000 s 4(1A)(b) — Employers must act in good faith and maintain a responsive, constructive relationship, especially in dealing with stress and mental-health concerns.
  • ERA 2000 s 103(1)(b) — Employees may raise a personal grievance for unjustified disadvantage caused by workplace stress or failure to provide a safe environment.
  • Robinson v Nelson College [2015] NZEmpC 14 — Held that employers must take proactive steps once aware of work-related stress.
  • Ferguson v Canterbury District Health Board [2021] NZEmpC 142 — Confirmed that employers’ obligations extend to managing psychological safety in high-pressure environments.

Process (How a Case Generally Proceeds)

  1. Identify the Cause of Stress or Harm – Document behaviours, communications, workloads, and impacts on your health.
  2. Raise Concerns Internally – Report to management, HR, or Health & Safety Representative.
  3. Medical Evidence – Obtain GP or psychologist documentation linking your stress or harm to workplace factors.
  4. Raise a Personal Grievance – Within 90 days under ERA s 114, for unjustified disadvantage or breach of duty of care.
  5. Mediation – The Ministry of Business, Innovation & Employment (MBIE) provides free mediation to seek early resolution. The process is voluntary and both parties must agree to attend. Most cases reach resolution at Mediation.
  6. Employment Relations Authority Investigation – If unresolved, a Statement of Problem is filed; the Authority investigates and issues a written determination.
  7. Employment Court Appeal – Possible for errors of law or procedure.

Potential Outcomes / Remedies

  • Compensation for humiliation, loss of dignity, or mental harm (ERA s 123(1)(c)(i)).
  • Lost wages if stress forced you to take unpaid leave or resign.
  • Orders for employer compliance with health and safety obligations.
  • Penalties for serious breaches of HSWA 2015 or ERA s 4.
  • Reinstatement or modified work arrangements.
  • Counselling and wellbeing-support costs reimbursed.

Take Action Today

If you’ve suffered stress, burnout, or mental harm due to your employer’s actions or inaction, you have the right to be heard and compensated. Get in touch with us to arrange a no-obligation consultation about your situation. We’ll assess your case, explain your options, help gather evidence, request your employment file, and help you pursue the justice and compensation you deserve.