From Wellbeing to Liability: Trends showing how poor wellbeing management can lead to employment law risks 

By Anjali Malik, an associate who specialises in employment law and commercial disputes and Sarika Rabheru, employment lawyer specialising in employment law and investigations at Bellevue Law 

The focus on employee wellbeing has shifted from a cultural aspiration to a compliance requirement. UK employers now face enforceable duties spanning health and safety, equality law (reasonable adjustments and harassment prevention) and employment law. Failure to act can lead to claims for constructive dismissal, disability discrimination and psychiatric injury, each carrying the potential for significant or unlimited awards. 

This article outlines the key risks, and the practical steps organisations should take to remain compliant. 

Constructive Dismissal: When Neglect Breaches Trust 

Wellbeing concerns frequently escalate into constructive dismissal claims where an employer’s handling of issues is slow, inconsistent or poorly documented. For example, delayed grievances, unmanaged workload pressures and ineffective absence management are typical triggers. 

The legal risk increases where decisions around reasonable adjustments are fragmented or lack clear documentation, creating the impression that the employer failed to respond to known or foreseeable harm. In many cases, the claims that follow stem not from the original issue itself, but from how it was managed. 

Mental Health, Menopause and Discrimination 

Mental health conditions and, increasingly, menopause-related symptoms, can potentially qualify as a disability under the Equality Act 2010. This triggers obligations on employers to consider making reasonable adjustments if appropriate. 

Tribunal data shows a sharp rise in claims in these areas, with menopause-related cases tripling between 2022 and 2024. Likewise, we are seeing an increase in internal grievances related to mental health conditions and menopause-related issues. Where discrimination is established by a tribunal, compensation is uncapped, and employers who cannot evidence their decision-making processes find themselves at a significant disadvantage. 

Personal Injury and Stress Claims 

Employers have a statutory duty to assess and control stress risks under the Management of Health and Safety at Work Regulations 1999, supported by the HSE’s Management Standards. 

Work-related stress is now one of the most significant health challenges in UK workplaces. In 2023/24, 776,000 workers reported stress, depression or anxiety, accounting for nearly half of all self-reported work-related ill health and resulting in 16.4 million lost working days. 

Tribunals continue to recognise that chronic stress and associated conditions may amount to a disability, exposing employers to unlimited damages. Crucially, work-related stress is not merely an HR issue: it is a health and safety obligation. While HSE prosecutions are rare, they become more likely when employers fail to act on known concerns. 

Why Wellbeing Failures Become Litigation 

From our experience advising employers or conducting independent investigations, wellbeing issues rarely explode overnight. More often, the path to litigation begins quietly, with early warning signs that are either missed, minimised or misunderstood. Stress-related comments, requests for adjustments or complaints about team culture often surface long before any formal dispute. When these signals are overlooked, they accumulate, and by the time a grievance or claim is lodged, the organisation is already on the back foot. 

A consistent theme we see in cases is the role of inconsistency. Even well-intentioned employers can find themselves exposed when similar issues are handled differently across teams or managers. These inconsistencies, whether subtle or stark, quickly translate into allegations of unfairness, discrimination or even victimisation. The legal risk isn’t just in the decisions made, but in the absence of a clear, dependable framework that ensures managers respond in a way that is lawful, fair and aligned across the organisation. 

Documentation is another area where we routinely see employers falter. In tribunal litigation, documentation is often the primary defence. Decision-making records, notes of conversations and evidence of the employer’s thought process are crucial. Tribunals want to understand what the employer knew, when they knew it and what they did in response. Without this, even the most reasonable actions can look reactive, inconsistent or, even worse, indifferent. In many grievances or claims, it is not the original wellbeing issue that proves most damaging, but the lack of clarity and record-keeping around how the organisation responded. 

Compliance Essentials 

1. Stress Risk Assessment 

Develop a formal stress policy and conduct risk assessments which are aligned to the HSE’s six key stressors: Demands, Control, Support, Relationships, Role and Change. Where patterns emerge across teams, treat them as organisational risks that require intervention. 

2. Reasonable Adjustments 

Respond quickly to health-related issues. When an employee discloses a disability, employers must handle the information sensitively and confidentially, explore how the condition affects the employee’s work, and consider what reasonable adjustments may be needed under the Equality Act 2010. Employers should act promptly, document discussions and decisions and review adjustments regularly to ensure they remain effective. Early action is often the difference between resolution and litigation. 

3. Manager Training 

Employers should equip line managers to recognise distress, respond to concerns and escalate issues in a timely and appropriate manner, often this can be done through manager training. Awareness of changes in employee behaviour can be a crucial early signal. 

4. Lawful Wellness Programmes 

Ensure wellbeing initiatives are voluntary, non-discriminatory and compliant with data protection law requirements for handling health data. 

Despite the complexity of the legal landscape, a lot of wellbeing-related disputes stem from simple, preventable failures: early warning signs that go unnoticed, inconsistent managerial responses and gaps in documentation. In our experience, it is rarely the underlying wellbeing issue that creates the greatest legal exposure, it is how the organisation responds to it. A proactive, consistent and well-documented approach remains the most effective way to reduce risk, build trust and protect both employees and the organisation. 

Disclaimer: The views expressed in this opinion piece are those of the author and do not necessarily reflect the views of The Well Crowd. This content is for information and discussion purposes only and should not be taken as medical, health, or professional advice.