Mental Health Policy

Author: Jasmine Burrows, Progressive Legal

Implementing a mental health policy in your business is not only an ethical decision but also a legal imperative. It is essential for companies to prioritise mental health, create a supportive work environment, and comply with relevant laws and regulations.

By fostering a mentally healthy workplace, businesses can benefit from a more productive, loyal, and engaged workforce, ultimately leading to their continued success and growth. 

Why is mental health important in the workplace? 

Mental health concerns affect millions of people globally, and the workplace is no exception. It is crucial for employers to acknowledge that mental health is as significant as physical health and that both are interconnected.

Stress, anxiety, depression, and other mental health issues can profoundly impact an employee’s well-being and job performance. Businesses that prioritise mental health create an environment where employees feel supported, leading to increased job satisfaction and loyalty. 

Why should you have a mental health policy for your business? 

Having a mental health policy in place offers numerous benefits to both employees and employers. Let’s explore some of the key advantages: 

Promotes Employee Well-being

A mental health policy demonstrates a company’s commitment to the well-being of its employees. By providing resources, support, and accommodations, employees feel valued and cared for, leading to increased job satisfaction and overall happiness. 

Reduces Stigma

A well-implemented mental health policy can help break down the stigma surrounding mental health issues in the workplace. It encourages open conversations about mental health, fostering a culture of understanding and empathy. 

Enhances Employee Productivity

When employees feel supported and their mental health needs are met, they are more likely to be focused and productive at work. Addressing mental health concerns early on can prevent productivity declines and absenteeism. 

Reduces Absenteeism and Presenteeism

A supportive mental health policy can reduce absenteeism related to mental health issues. It also addresses presenteeism, where employees come to work despite being unwell, which can negatively impact productivity. 

Improves Employee Retention

Companies that prioritise mental health are more likely to retain their employees. A positive work environment that supports mental health can increase employee loyalty and reduce turnover. 

Complies with Legal Obligations

Many jurisdictions have employment laws that protect individuals with mental health conditions and require employers to provide reasonable accommodations. Having a mental health policy ensures compliance with these legal obligations. 

Reduces Workplace Conflicts

A mental health policy can help prevent and manage conflicts related to mental health issues in the workplace. It sets clear guidelines for addressing concerns and promoting a harmonious work environment. 

Increases Overall Performance

A mentally healthy workforce is likely to collaborate better, communicate effectively, and contribute positively to the business’s success. 

Cost Savings

Investing in mental health support can lead to cost savings in the long run. Addressing mental health issues early on can prevent more severe problems and reduce the need for costly interventions and reduce an employer’s expense with regard to turnover or managing extended long-term leave. 

Encourages Early Intervention

A mental health policy can encourage employees to seek help for mental health issues at an early stage. This early intervention can lead to better outcomes. 

Boosts Business Reputation

Businesses that prioritise mental health are often viewed positively by the public and customers. This positive reputation can enhance brand value and lead to increased customer loyalty. 

What should you include in a mental health policy? 

Mental health policies will differ based on the business, however, here are some common features: 

Description of the Policy’s Purpose

The policy should start with a clear and concise statement outlining the primary objectives and goals of the mental health policy. This section should emphasise the business’ commitment to promoting a mentally healthy work environment and supporting employees’ mental well-being. 

Coverage and Applicability

Specify who is covered by the policy. This includes all employees, contractors, interns, and any other individuals engaged in work-related activities on behalf of the business. The policy should apply to all levels of the business, from top management to frontline workers. 

Legal Requirements and Legislation

Provide a comprehensive overview of the relevant laws, regulations, and legislation related to mental health in the workplace. This section should emphasise the business’ commitment to complying with all applicable laws and ensuring the protection of employees’ mental health rights. 

Psychological Hazards, Expectations, and Behaviour Standards

Clearly outline the psychological hazards that employees may encounter in the workplace. Identify potential stressors and factors that can negatively impact mental well-being. Additionally, lay out the expectations and behaviour standards, defining acceptable and unacceptable behaviour related to mental health. This helps establish a respectful and inclusive work culture. 

Supporting Procedures and Resources

Refer to any relevant supporting procedures, guidelines, or resources that complement the mental health policy. These may include access to Employee Assistance Programs (EAPs), counselling services, training materials, and relevant contact information for mental health professionals. 

Complaints and Issue Management

Detail the process for employees to raise complaints or concerns related to mental health issues in the workplace. Provide multiple channels for employees to report grievances, ensuring confidentiality and non-retaliation for those who come forward. Clearly outline the steps the business will take to address and investigate such complaints. 

Consequences of Non-Compliance

Clearly state the consequences of failing to adhere to the mental health policy. This should include disciplinary actions for any breaches of the policy and emphasise that discrimination or retaliation against employees who seek help for mental health issues will not be tolerated. 

Monitoring and Review Process

Outline a well-defined process for regularly monitoring and reviewing the effectiveness of the mental health policy and its supporting procedures. This may involve seeking feedback from employees, analysing relevant data, and conducting periodic evaluations to identify areas of improvement. 

What are the relevant laws? 

In order to design a well-written mental health policy for your business, you need to be well-informed the relevant laws in your jurisdiction. This ensures that the policy aligns with legal requirements and provides adequate protection to employees’ mental health rights.

Section 351 of the Fair Work Act 2009 (Cth)

The Fair Work Act 2009 (Cth) protects employees who are dealing with mental health problems from unlawful workplace discrimination. This is when an employer takes adverse action against the employee on the basis of their mental health problem or disability. Adverse action includes unlawfully dismissing an employee. 

Key Takeaways 

As the understanding of mental health continues to evolve, businesses around the world are realising the importance of implementing robust mental health policies. These policies are essential for promoting an inclusive and supportive workplace. By providing a comprehensive framework for addressing mental health concerns, a well-designed policy helps businesses proactively identify and mitigate potential psychological hazards.

If you need a mental health policy written for your business, do not hesitate to contact our team of workplace lawyers at Progressive Legal. Feel free to give us a call on 1800 820 083 or make an enquiry below.  

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