Employers warned to tackle job stress after court decision

A court decision to fine a firm $8000 for not doing enough to help an overworked employee should be seen as a wake-up call for employers, says the Department of Labour.

National operations manager Mike Cosman said employers were now going to have to recognise stress as a legitimate hazard.

Yesterday, Nelson engineering firm Nalder and Biddle became the first company in New Zealand to be convicted of failing to provide a safe working environment, after an employee broke down from work-related stress. It was also ordered to pay reparation of $1300 for medical bills.

The victim, a woman who was employed by the firm on $58,000 a year, was granted name suppression.

Business New Zealand chief executive Phil O'Reilly believed workplace stress could be a "sleeping giant".

He said while it was just one case, businesses should always take action when employees raised concern about stress.

"Some may be trying to rip the system off, but generally speaking many are going to be genuine about it."

Business New Zealand had recently seen a rise in the number of instances of employees claiming stress when facing disciplinary action for poor performance.

Nalder and Biddle chief executive Allan Price declined to comment this morning and the Nelson Tasman Chamber of Commerce would not comment until it had more information.

The prosecution was taken against the Nelson company because there was clear, clinical evidence that mental harm was caused, and the employer failed to act, Mr Cosman said.

The department was investigating several other cases, but he was not aware of any other Nelson companies being investigated.

Mr Cosman said employers needed to prevent harm caused by stress, not the stress itself.

"Employers should act to stop stress becoming so severe that it causes a heart condition or mental illness."

The charge carries a maximum fine of $250,000, but the amount of yesterday's fine was not critical, he said.

"It's more about creating process, and it's firmly established by the courts and that they understand it clearly."

In Nelson District Court yesterday Judge David McKegg said employers needed to be discouraged from avoiding any responsibility for the health of employees.

- NZPA