Two recent rulings by the Employment Relations Authority (ERA) underscore the critical need for businesses to address workplace stress and prioritise employees’ mental health.
Case Highlights
- Burnout and Constructive Dismissal:
- Situation: An employee experienced severe burnout due to multiple stressors, including incorrect budgets, high and fluctuating sales targets, reduced sales support, and the pressure of a brand merger.
- Outcome: Despite efforts to communicate these issues, the employee felt forced to resign and took legal action.
- ERA Ruling: The ERA determined the company failed to adequately address the employee’s mental health concerns and awarded $50,000 for constructive dismissal. This case emphasises the necessity for businesses to be responsive to mental health issues and follow proper procedures to address them.
- Workplace Mistreatment:
- Situation: A personal assistant reported mistreatment by senior staff, including the CEO, HR Manager, and a board member. The issues included verbal abuse, derogatory remarks, and unfair work demands.
- Outcome: The mistreatment negatively impacted the employee’s well-being, leading to legal action.
- ERA Ruling: The ERA awarded $36,000 in compensation to the former employee and highlighted the importance of organisations prioritising employee welfare and addressing misconduct promptly.
How Business 360 Can Help
Thorough Evaluation: We provide in-depth assessments of your current psychosocial risk management measures, ensuring they align with the standards set by the Employment Relations Authority.
Preventative Measures: Assistance in developing proactive strategies to prevent psychosocial hazards, including understanding the impacts of bullying and harassment, aggressive behaviour and poor workplace communication.
Training and Support: Provide tailored training programs and ongoing support to support a healthy and productive work environment for all employees.
Prioritising your employees’ mental health and well-being makes good business sense and ensures a low risk and compliant workplace. Contact Business 360 today to get started by by calling 0800 449 289 or email info@business360.nz.
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