ARTICLE
5 September 2025

Mind Over Matter – Prioritising Employees' Mental Health

BA
BTG Advaya

Contributor

BTG Legal is an Indian law firm with particular focus on: defence; industrials; digital business; energy (renewables and nuclear); retail; transport (railways and electric vehicles); and financial services. Practices include corporate transactions, commercial contracting, public procurement, private equity, regulatory compliance, employment, disputes and white-collar crime.
The COVID-19 pandemic brought employee mental health to the forefront. Remote work, social isolation, and job insecurity lead to increased stress and anxiety in employees.
India Employment and HR

Introduction

The COVID-19 pandemic brought employee mental health to the forefront. Remote work, social isolation, and job insecurity lead to increased stress and anxiety in employees. Even as the immediate crisis eased, rising cases of burnout, fatigue, and turnover showed that mental well-being remains a serious concern for organizations, directly influencing productivity, retention, and workplace culture. In this context, employers have a growing responsibility to foster a safe and supportive work environment, recognising that mental well-being is as essential as physical safety.

This article focuses on growing recognition of mental well-being in Indian workplaces, the obligations this places on employers, and strategies for integrating mental health into organisational policies and culture.

Laws governing mental health of employees in India

In India, employers have a broad duty to ensure the health and safety of employees in the workplace. Legislation such as the Factories Act, 1948, the Contract Labour (Regulation and Abolition) Act, 1970, and the various State Shops and Establishments Acts set out clear requirements for employers to provide basic facilities, including safe working conditions, sanitation, drinking water, restrooms, and other amenities essential for employee welfare. These provisions, however, have traditionally been interpreted in the context of physical health and occupational safety; addressing issues such as accidents, injuries, and hygiene; while mental health has remained largely outside their scope.

Two recent laws have marked a shift towards recognizing mental health within the legal framework in India. The Rights of Persons with Disabilities Act, 2016 ("RPwD Act") includes "mental illness" in the definition of disability. It requires employers to provide reasonable accommodations, such as flexible work arrangements or supportive measures, for employees affected by such conditions. Furthermore, following a recent Supreme Court ruling1, employers may need to offer reasonable accommodations even when a specific mental health condition does not meet the strict definition of disability under the RPwD Act. This signals a broader judicial approach to protecting employee well-being.

Similarly, the Mental Healthcare Act, 2017, establishes the right to access mental healthcare and mandates parity between treatment of mental and physical illness, including in insurance coverage. While neither Act is employment-specific, both extend important protections that indirectly influence workplace practices. Together, they signal a legislative intent to acknowledge mental health as a legitimate concern in professional settings, encouraging employers to move beyond compliance with traditional health and safety norms and integrate mental well-being into their organisational responsibilities.

Best Practices for Employers (Beyond Statutory Measures)

Given the few direct legal requirements regarding workplace mental health in India, employers must take proactive steps that go beyond just following the rules. Companies that treat mental well-being as an important goal not only improve employee satisfaction but also boost productivity, retention, and the overall workplace culture. Some best practices include:

  1. Reasonable Accommodations Even when not required by law, employers can offer support like flexible work hours, remote work options, or changes to workloads for employees facing mental health issues. These measures often require minimal cost but have significant positive impact.
  2. Mental health coverage in insurance benefits Employers offering group health insurance should make sure that coverage includes mental health treatment. Additional benefits, like wellness allowances or access to online mental health platforms, can provide even more support.
  3. Creating Safe Spaces Beyond physical safety, employers should focus on creating a psychologically safe workplace. Employees should feel comfortable speaking up, sharing concerns, and seeking help without fear of retaliation or stigma. Anonymous grievance mechanisms and wellness committees can help reinforce this environment.

Conclusion

The discussion about workplace mental health in India is still developing. The legal framework provides limited and indirect guidance. Recent laws like the RPwD Act and the Mental Healthcare Act, 2017, show important progress. However, they do not require employers to meet comprehensive obligations. Considering this, organizations need to do more than just follow the law. They should actively include mental well-being in their workplace practices. By creating thoughtful policies, providing meaningful support systems, and encouraging a culture of openness and empathy, employers can fill the gaps, improve productivity, and present themselves as responsible and forward-thinking.

Footnote

1. CH. Joseph v. Telangana State Road Transport Corporation, SLP (Civil) No. 36278 of 2016

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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