ARTICLE
24 August 2025

Addressing Employee Claims of Workplace Anxiety

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LegalVision

Contributor

LegalVision, a commercial law firm founded in 2012, combines legal expertise, technology, and operational skills to revolutionize legal services in Australia, New Zealand, and the UK. Beginning as an online legal documents business, LegalVision transitioned to an incorporated legal practice in 2014, and in 2019 introduced a membership model offering unlimited access to lawyers. Expanding internationally in 2021 and 2022, LegalVision aims to provide cost-effective, quality legal services to businesses globally.
This article will guide you through the process of addressing employee claims of workplace anxiety in New Zealand.
New Zealand Employment and HR

In Short

  • Employers must address workplace anxiety as part of their health and safety duties, taking reasonable steps to manage psychosocial hazards.
  • Key actions include investigating causes, offering support and accommodations, and following up to monitor progress.
  • Failing to act can lead to legal risks under employment, health and safety, and human rights laws.

Tips for Businesses

Create a culture where employees feel safe raising mental health concerns. Respond promptly, keep discussions confidential, and explore practical solutions such as flexible hours or workload adjustments. Train managers to recognise signs of anxiety, and regularly review policies to ensure they support mental health rather than contribute to stress.

Workplace anxiety is becoming an increasingly prevalent issue in modern workplaces. As an employer, it is crucial to address these claims effectively, not only for the well-being of your employees but also for the overall productivity and health of your organisation. This article will guide you through the process of addressing employee claims of workplace anxiety in New Zealand.

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Understanding Workplace Anxiety

Workplace anxiety is more than just feeling stressed about deadlines or presentations. It is a persistent feeling of worry, fear, or unease related to work that can significantly impact an employee's performance and well-being. Common symptoms include:

  • excessive worry about work-related issues;
  • difficulty concentrating or completing tasks;
  • physical symptoms such as rapid heartbeat, sweating, or trembling;
  • avoidance of certain work situations or tasks; and
  • increased absenteeism.

Legal Obligations for Employers

In New Zealand, employers have legal obligations under the Health and Safety at Work Act 2015 to ensure the health and safety of their workers, which includes mental health and addressing any psychosocial hazards in the workplace. This means taking reasonably practicable steps to address workplace anxiety when it is brought to your attention.

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Steps to Address Employee Claims of Workplace Anxiety

1. Take All Claims Seriously

When an employee reports experiencing workplace anxiety, it is crucial to take their concern seriously. Dismissing or downplaying their concerns can heighten the issue and potentially lead to legal complications.

2. Maintain Confidentiality

Ensure that any discussions about an employee's anxiety are kept confidential. Only share information on a need-to-know basis with those directly involved in addressing the issue.

3. Conduct a Thorough Investigation

Investigate the root causes of the anxiety. This may involve:

  • having a private conversation with the employee;
  • reviewing workload and job responsibilities; and
  • assessing workplace dynamics and potential stressors.

4. Provide Support and Accommodations

Based on your findings, consider what reasonable accommodations can be made. These might include:

  • adjusting workload or deadlines;
  • providing additional training or resources;
  • offering flexible working arrangements;
  • modifying the physical work environment; and
  • consider interpersonal relationships.

5. Encourage Professional Help

Encourage the employee to seek professional help if needed. This could involve:

  • referring them to an Employee Assistance Program (EAP) if available; and
  • suggesting they consult with their GP or a mental health professional.

6. Implement Preventive Measures

Take steps to prevent workplace anxiety across your organisation:

  • promote a positive work culture;
  • provide mental health awareness training;
  • encourage work-life balance; and
  • regularly review workloads and job designs.

7. Follow Up and Monitor Progress

Regularly check in with the employee to monitor their progress and the effectiveness of any accommodations or interventions.

Fostering a Supportive Workplace Culture

While addressing individual claims of workplace anxiety is crucial, it is equally important to foster a workplace culture that proactively supports mental health and well-being. This can help prevent anxiety issues from arising in the first place and create an environment where employees feel comfortable discussing their concerns.

Consider implementing strategies to encourage open communication about mental health in the workplace, such as regular check-ins, anonymous feedback systems, or mental health awareness campaigns. Provide training for managers and supervisors on recognising signs of anxiety and other mental health issues, and how to respond appropriately. Offer workshops or resources on stress management techniques, such as mindfulness, meditation, or time management skills. Implement policies that promote a healthy work-life balance, such as flexible working hours, remote work options, or encouraging employees to take their full annual leave entitlement.

Continuously review and update workplace policies to ensure they support mental health and do not contribute to anxiety. This proactive approach can lead to reduced instances of workplace anxiety, improved employee satisfaction and retention, and overall better organisational performance.

Potential Legal Risks

Failing to adequately address claims of workplace anxiety can lead to various legal risks, including:

  • personal grievance claims under the Employment Relations Act;
  • health and safety prosecutions under the Health and Safety at Work Act; and
  • human rights complaints under the Human Rights Act, if the anxiety is related to a mental health condition that qualifies as a disability.

It is important to note that if an employee raises a personal grievance under the Employment Relations Act, they cannot raise the same grievance under the Human Rights Act.

Key Takeaways

Addressing employee claims of workplace anxiety requires a careful, compassionate, and legally compliant approach. By taking these claims seriously and implementing appropriate measures, you can create a healthier work environment, improve employee well-being and productivity, and lessen potential legal risks.

If you have any questions about managing workplace anxiety with employees, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 447 119 or visit our membership page.

Frequently Asked Questions

What should I do if an employee reports workplace anxiety?

Take all claims seriously, keep discussions confidential, and investigate the root causes. Consider reasonable accommodations such as flexible hours or reduced workload, and encourage professional help. Follow up regularly to monitor progress and ensure the measures are effective.

What legal risks arise if workplace anxiety claims are ignored?

Failing to address workplace anxiety can lead to personal grievance claims, health and safety prosecutions, or human rights complaints if it qualifies as a disability. Employers must take reasonably practicable steps to manage psychosocial hazards under New Zealand's Health and Safety at Work Act 2015.

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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