Workplace Mental Health: The good, the bad, and the costly

Workplace Mental Health: The good, the bad, and the costly

by | Jul 3, 2024 | Workplace Wellbeing

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Contents

It’s not just about physical safety anymore; it’s about making sure our minds are healthy too. As employers face a storm that requires a truckload of agility, they need to both look after their own mental health and provide a safe environment for their employee’s mental well-being. This article contains some free resources for employers to do just that.

As we are all aware, employers have a big responsibility under the law to keep the workplace safe, and that includes mental health.

The Health and Safety at Work Act 2015 outlines that businesses have to do their best to ensure that the workplace is safe, including looking after mental health.

Think about it like this: if someone breaks their arm at work, everyone knows they need help. It’s visible. But when someone’s feeling down or anxious, it’s not always easy to see.

What does good mental health look like in the workplace?

In 2022, Worksafe New Zealand conducted a qualitative, exploratory research project to understand more about what good mental health looks like in the NZ workplace.

We’ll provide a brief overview here, but the research also focused on what good mental health at work looks like for workers in specific industries (healthcare, construction, and manufacturing) and amongst specific worker groups (young workers, Māori, and Pasifika).

They emphasise that because the sample size was small, the results are not intended to be generalisable but rather used as a starting point.

You can find the full results here.

The research found eight broad categories of protective factors that contribute positively towards their work-related wellbeing:

Note: these protective factors are taken directly from Worksafe’s work-related wellbeing research summary.

  1. Organisational culture: A health and safety-focused organisational culture which is role modelled by managers and leaders, and where workers are aware of and adhere to relevant health and safety regulations.
  2. Leadership: Leadership (including managers) who promote and role model good health and safety practices, cultivate high-trust environments through open and transparent communication, and are understanding of and responsive to workers’ needs.
  3. Interpersonal relationships: Supportive interpersonal relationships with co-workers and leadership.
  4. Recognition and reward: Monetary recognition and reward for performing work.
  5. Career development: Adequate levels of training and continued opportunities for professional development and career progression.
  6. Workload: Manageable workloads, achievable deadlines, and autonomy to manage work/life balance within the role.
  7. Physical work environment and equipment: A safe and comfortable physical work environment and safe equipment.
  8. Worker/job fit: Workers performing jobs which are a good fit for them in terms of their skills, experience, needs, and personal attributes.
So now we have at least a broad understanding of what good workplace mental health looks like, let’s consider a couple of case studies – one from Australia, and one from New Zealand – which illustrate how poor mental wellbeing in the workplace can impact both workers and employers.

Cautionary workplace mental health tales for employers

Case law from Australia and New Zealand outlines the costly implications of not adhering to this duty of care to provide a safe work environment, including mental health.

Case 1: Robinson v Western Union Business Solutions (Australia)

Robinson v Western Union Business Solutions (Australia) Pty 2018 saw the court awarding $140,000 (AUD) in compensation and $20,000 (AUD) in penalties. The court concluded that the employee’s termination was linked to workplace-induced depression and anxiety.

Mr. Robinson, an account executive, had been away from work for nearly eight months due to stress, anxiety, and depression related to his job. Western Union repeatedly asked him to provide updates on his return and attend a medical assessment, which he initially refused but later agreed to. However, the company never scheduled the assessment and eventually terminated his employment in May 2017.

Western Union cited reasons such as Mr. Robinson’s uncertainty about his return date, failure to cooperate with medical advice requests, and doubts about his ability to return to work as grounds for termination. However, the Federal Court ruled that the decision to terminate violated the Fair Work Act 2009 by discriminating against Mr. Robinson based on his mental disability.

The court also dismissed Western Union’s argument about the “inherent requirements” exception, stating that the company failed to prove Mr. Robinson’s inability to fulfil his job’s essential duties.

This ruling underscores the challenges employers face when dealing with unwell employees. Before letting go of such employees, including those with mental health issues, employers must take reasonable steps to assess their fitness for work and capability to perform their job’s essential tasks.

Case 2: Cronin-Lampe v Board of Trustees of Melville High School

On this side of the Tasman Cronin-Lampe v Board of Trustees of Melville High School 2023 were a married couple that provided counselling services to a high school and were awarded a total of nearly $1.8 million in damages which covered loss in income, medical expenses, and the losses from having to sell a rental property because of financial difficulties.

During their time at the school, they faced a lot of tough situations, including around 32 deaths, many of them by suicide, in the school community. They worked hard to support students, families, and teachers through these tough times, but they didn’t get the support they needed from their employer.

Conclusion

When dealing with performance issues and mental health concerns, employers need to be careful.

If an employee’s mental health issues are known or arise during a process, consider if medical information is needed before proceeding. Sometimes, pausing the process is necessary.

If you need help with health-related employment issues, reach out. Every situation is different, but there are practical and fair solutions for both sides.

Where to get help

Directory for free advice

Blueprint – Blueprint have a number of course offerings for employers that are looking to upskill and learn how to support their employees. These courses include a MH101, leading wellbeing at work, stress, resilience & wellbeing

Healthline – 0800 611 116. Free support line for people experiencing mental health issues

Lifeline – 0800 543 354. Free, confidential mental health support 24/7 run by the Mental Health Foundation of New Zealand. Their website also has a number of resources for promoting mental wellbeing

Mates in Construction – 0800 111 315. Free support line for people in the construction industry facing health issues. They also have a pamphlet on how to have a conversation with someone facing mental health issues

Anxiety.org.nz – 0800 269 438. Free helpline for people living with anxiety and other mental health experiences in New Zealand

Gumboot Friday – Text or call 1737 24/7 – Free counselling for those 25 and under

Do you need support to understand or improve the wellbeing of your workforce?

Our HR experts are here to help. Get in touch to discuss your options.

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Fair Pay Agreements Act 2022 – a big change coming to NZ employers

Fair Pay Agreements Act 2022 – a big change coming to NZ employers

by | Nov 8, 2022 | Legal Compliance, Salaries & wages

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Fair Pay Agreements Act 2022 – a big change coming to NZ employers

Contents

The Government passed the Fair Pay Agreements Act on 26 October which means that applications to initiate bargaining can be made from 1 December 2022. It’s estimated that the process from bargaining to a finalised Fair Pay Agreement (an FPA) could take around a year.

What is a fair pay agreement?

A fair pay agreement or FPA is an agreement that applies to all workers across entire industries or occupations. It will provide minimum terms and conditions of employment for an industry as a whole, regardless of specific employers.

There are various matters that a fair pay agreement must cover. These are:

  • when the agreement will come into force and when it expires;
  • the coverage of the agreement;
  • normal hours of work;
  • details of wages, including minimum base wage rates, overtime, and penalty rates;
  • arrangements for training and development;
  • leave entitlements;
  • governance arrangements; and
  • an agreed process for varying the terms of the agreement

Parties will also be required to discuss (but not required to agree on) other matters including:

  • the objectives of the proposed agreement;
  • health and safety requirements;
  • arrangements relating to flexible working; and
  • arrangements relating to any redundancy.

The fair pay agreement must apply for a minimum of three years and a maximum of five years.

Who will this cover?

The FPA Act enables any eligible union to initiate bargaining for a FPA if it meets either a representation test or a public interest test.

The representation test is met if at least 1,000 employees or 10% of the employees who would be within the coverage of the proposed FPA support the application to initiate bargaining for the proposed FPA.

The public interest test is met if employees who would be within the coverage of the proposed FPA receive low pay for their work and meet one or more of the following criteria:

  • they have little bargaining power in their employment;
  • they have a lack of pay progression in their employment (for example, pay rates only increase to comply with minimum wage requirements);
  • they are not adequately paid, taking into account factors such as working long or unsocial hours (for example, working weekends, night shifts, or split shifts), and contractual uncertainty, including performing short-term seasonal work or working on an intermittent or irregular basis.

All employers of covered employees will be included in the FPA. For negotiation, the employers will be represented by an organisation; they will not be choosing one employer in an industry to negotiate on behalf of all employers in that industry.

An FPA may cover, and provide different entitlements for, different classes of employees, such as those who would be covered by a starting-out wage or a training wage. The agreement can also have different classes depending on the type of role, or the location of the employee.

In the future, if the legislation remains in place, a FPA could cover anyone who is an employee, and there is a possibility that the majority of New Zealand workers could eventually be covered by one. However, while there is no prohibition on any particular occupations creating a FPA, the legislation is geared toward low paid industries.

What are the various viewpoints about FPAs?

The government sees the system as a necessary correction to 30 years without sector-based bargaining, which it believes has had a negative impact on productivity and helped to increase inequality across the country by way of a shrinking share of the country’s earnings trickling down to workers. This legislation completes a key Labour Government 2020 election commitment.

Union officials have said it will be especially significant for low waged workers but also good for the industries that employ them as a whole, as it will make them more attractive workplaces for recruiting staff and retaining them.

Some employee groups and business associations have roundly criticised FPAs and both National and Act have made it their priority to repeal the legislation if they make it into government in the 2023 elections.

If a business is covered by an FPA, what will it involve?

  • An employer must provide employees with information about the FPA including how to contact and join the union if asked by the union
  • Provide contact details of the covered employees to the union unless employees’ object
  • The employer bargaining side must use its best endeavours to represent all employers and to act in good faith. Best endeavours are not defined but will almost certainly include a requirement to inform all affected employers, especially Māori employers

What should an employer do now?

Employers should start thinking about whether there is an association who may be able to represent them if FPA bargaining is initiated in respect of their employees, and which other employers may need to be involved. Employer groups who lack representation do face the very real possibility of terms being imposed on them by the Employment Relations Authority within a relatively short space of time, even though it is expected that it will take about a year for a FPA to be in place after bargaining commences.

The full details of the Fair Pay Agreements Act 2022 can be found on the New Zealand Legislation website and further information on the Employment New Zealand website.

If you have any questions about fair pay agreements, or employment agreements generally, please contact a member of the ConsultingHQ team.

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