In this insight, we explore why mental health has become a defining workplace challenge and what this means for employers with duties under the Health and Safety at Work etc. Act 1974 (HSWA). Drawing on the latest Health and Safety Executive (HSE) statistics and industry discussions, we examine the scale of the issue, its impact on business performance, the legal obligations organisations must meet and the potential consequence of failing to do so.

We also outline practical steps to move from awareness to action, from equipping managers with the right tools to embedding mental health into risk management frameworks.

The numbers behind the challenge

The HSE's most recent annual workplace health and safety statistics for 2024/25 reveal the scale of the problem:

  • 1.9 million workers reported work-related ill health last year, with mental health conditions making up the majority.
  • 964,000 cases of stress, depression or anxiety were directly linked to work – continuing an upward trend that began during the COVID-19 pandemic.
  • 40.1 million working days were lost due to ill health and injuries, placing significant strain on productivity and operations.

These figures are striking, especially given that the UK is widely regarded as one of the safest places to work globally. Yet, they confirm what many organisations already sense, mental health is not a peripheral issue.

The impact

Research from The Workforce Institute at UKG, which surveyed 3,400 people across 10 countries, underlines the significant impact of the workplace on employee wellbeing, noting that for 70% of employees, their manager has a greater impact on their mental health than their doctor or therapist, and an influence comparable to that of their partner.

Despite this, there is currently no mandatory requirement for managers to receive mental health training. This gap presents both a significant risk and a compelling opportunity for organisations.

The business case for wellbeing is clear, as poor mental health doesn't just affect individuals but also has a profound financial and operational impact on organisations, with billions lost annually due to ill health and injuries.

Why employers cannot ignore this

These wellbeing measures actively reveal weaknesses in risk management under HSWA, and with the HSE currently focused on raising awareness, enforcement is set to follow.

While mental health related enforcement action remains rare, the regulator has explicitly stated it will investigate where there is "evidence that a number of staff are experiencing work-related stress or stress-related ill health" and where organisational failings are identified. With conviction rates consistently above 90% and fines reaching into the millions for health and safety breaches (with organisations turning over more than £50 million facing substantially higher penalties under the Sentencing Guidelines), in-house teams cannot afford to wait for enforcement cases to rise before taking action.

The legal duty

Under HSWA, employers have a legal duty to ensure, so far as is reasonably practicable, the health, safety and welfare of employees. 'Health' includes mental health, and the HSE has been explicit about this for years. This obligation is not optional – failure to comply can result in uninsured, unlimited fines, significant legal costs and serious reputational damage that undermines client trust and brand integrity.

The HSE's Working Minds campaign, launched in November 2021, provides free guidance and tools to help employers meet these obligations. The campaign is built around five steps based on risk assessment principles: reach out and have conversations, recognise the signs and causes of stress, respond to any risks identified, reflect on actions taken and make it routine. Supporting resources include free online learning modules, a Talking Toolkit for structured conversations and downloadable risk assessment templates. More than 35 partner organisations, including Mind, ACAS, CIPD and NEBOSH, now support the campaign.

Mental health risk assessments deserve the same rigour as physical safety checks. Embedding these assessments into a strong compliance framework ensures organisations proactively identify stressors, mitigate risks and demonstrate due diligence. Beyond meeting legal compliance, this approach signals a genuine commitment to employee wellbeing, reduces absenteeism and strengthens organisational resilience.

Turning awareness into action

To address these challenges effectively, organisations should:

  • Equip managers with training: Managers need practical tools to recognise early signs, respond appropriately and build a supportive culture. Their influence on employee mental health makes this a business necessity, not just a 'nice-to-have'.
  • Embed mental health into risk management: Treat mental health as a core compliance and operational risk, not a wellbeing add-on. Written work-related stress risk assessments should be in place, reviewed regularly, and align with the HSE's Management Standards, which provide a recognised framework covering demands, control, support, relationships, role and change.
  • Leverage data-driven approaches: Use anonymous staff surveys and mental health champions to help identify issues early and build trust. Psychological risks should be captured in reporting systems with the same systematic approach applied to physical risks.
  • Focus on prevention: Address root causes such as excessive workload, job insecurity and lack of flexibility, rather than relying solely on reactive measures.

The bottom line

Mental health is everyone's responsibility – but for employers, it is also a legal duty. The evidence is clear, investing in mental health is not only the right thing to do, it also helps organisations comply with the law, safeguard their people, protect their reputation and strengthen the business for the future.

For any questions or concerns about meeting your health and safety obligations around mental health, please contact Andrew Litchfield or Natalie Barton-Howes.