Mental Health Awareness Week takes place from 12 to 18 October 2026. It is a timely reminder that mental wellbeing is not only a personal issue but also an important workplace health and safety issue.
According to the 2025 Workplace Wellness Report by Southern Cross Health Insurance and Business NZ, the average rating of workplace stress and anxiety levels within organisations fell from 3.14 in 2022 to 2.95 in 2024, on a five-point scale. This is only a reduction of 6% demonstrating that stress and anxiety are still key issues within workplaces. Workload continues to be the leading reported cause of workplace stress and anxiety, while mental wellbeing and stress have become more prominent drivers of workplace absence.
Left unmanaged, workplace stress can have serious consequences for employees’ physical and mental health, as well as long-term effects on businesses.
This article aims to provide an understanding of employers’ obligations to protect employees’ mental health, some common psychosocial risks, and the leave and other support that could be available to an employee who is unable to work because of stress or another health condition.
Note: upcoming changes: Changes to the Health and Safety at Work Act 2015 (“HSWA”) are expected to take effect from 1 April 2027. These will alter the risk-management obligations applying to businesses and place greater emphasis on managing critical risks i.e. risks most likely to cause death, serious injury or illness. Employers should be aware of the changes and review their health and safety systems before they take effect.
Employers’ obligations to protect mental health and safety at work
Under section 36 of the HSWA, employers must, so far as is reasonably practicable, ensure the health and safety of their workers. “Health” includes both physical and mental health.
This means employers should identify work-related risks that could cause psychological harm and take reasonably practicable steps to eliminate or minimise them. An employer that fails to respond appropriately to these risks (known psychosocial risks) is at risk of breaching its obligations under the HSWA.
What are psychosocial risks?
Psychosocial risks are aspects of work or the way work is designed, organised or managed that may cause psychological harm to an employee. They can include unmanageable workloads, long working hours, workplace bullying or harassment, poor leadership, workplace conflict, unclear responsibilities and inadequate tools, resources or training to perform the role.
Managing psychosocial risks should focus on eliminating or minimising harm wherever reasonably practicable. However, when an employee becomes unwell because of stress or another mental-health condition, they may need time away from work or other temporary support.
What is stress leave?
Stress leave is a discretionary form of leave that an employer may provide when an employee is experiencing stress or another health condition arising from the workplace. It is not a statutory leave entitlement in New Zealand. Instead, an employer may choose to provide it as special leave so that the employee does not have to use their accrued sick leave or even annual leave while they recover from a work-related condition.
An employer may set the circumstances in which stress leave is available, the duration and whether medical information is required. If the employer offers paid stress leave, this can provide meaningful support without reducing the employee’s statutory sick leave balance.
Is stress leave the same as paid sick leave?
No. Unlike sick leave, there is no legal requirement in New Zealand for employers to provide stress leave to employees. Most employees are entitled to a minimum of 10 days of paid sick leave per year after six months of continuous employment, subject to the eligibility requirements in the Holidays Act 2003.
Why might an employer provide stress leave?
Stress can have a significant adverse impact on an employee’s mental and physical health. Providing stress leave may give an affected employee the time and space needed to rest, recover and regain perspective on the workplace issues affecting them. It may also help the employee identify practical steps that could reduce the impact of those issues on their wellbeing.
What other support can an employer provide?
However, stress leave (or sick leave) should not be treated as a substitute for addressing the underlying psychosocial risk.
Employers should consider whether workplace factors, such as workload, duties, hours, working arrangements, unclear expectations, interpersonal conflict, bullying concerns or organisational change may be affecting the employee’s wellbeing.
They should then seek to address and resolve the relevant workplace factors. Depending on the circumstances, this may involve reviewing and adjusting the employee’s workload, duties, hours or reporting arrangements, addressing workplace conflict through facilitated discussions or mediation, and (where appropriate) investigating and responding to concerns about bullying or other misconduct. Employers should also consider what additional support may be available to the employee and/or their team, including access to counselling or an employee assistance programme.
Maintaining respectful, appropriate communication during the employee’s absence is also important. Where appropriate, employers should work with the employee to develop a supportive and sustainable return to work plan, which may include a phased return, temporary adjustments to duties, hours or reporting lines, and regular check-ins to review the employee’s capacity, progress and wellbeing.
If an employee’s stress is not managed effectively, it can lead to a decrease in productivity and performance and increased absences from the workplace. Its effects can also extend beyond the individual, placing pressure on their colleagues and negatively affecting team dynamics and the organisation’s culture. Left unmanaged, workplace stress can lead to serious health consequences for employees and broader operational consequences for the organisation as a whole.
Mental Health Awareness Week is an opportunity for employers to consider whether their workplace systems genuinely support mental wellbeing and effectively address psychosocial risks.
If you are an organisation and would like some further guidance around potential psychosocial hazards in the workplace or steps you should be taking to ensure the wellbeing of your employees within the workplace, please get in touch with the team at Black Door Law.
Disclaimer: This information is intended as general legal information and does not constitute legal advice. If you have a specific issue and wish to discuss it, get in contact with the Black Door Law team.
