Compensation for Stress at Work

Introduction

Very often, the stress an employee suffers in the workplace can be immense. Beyond the ordinary stress and anxiety that can be anticipated from any working environment, instances of bullying, harassment, intimidation, and coercion, can lead to long term psychological damage.

In many instances, employees resign their role on foot of the intolerable working conditions and bring a complaint before the Workplace Relations Commission (WRC), of unfair constructive dismissal.

In cases of constructive dismissal, the WRC is only permitted to award compensation, in respect of loss of earnings only. Very often, this falls far short in compensating the employee for the totality of the damages suffered.

In certain instances where the employee has suffered a recognised psychiatric or psychological injury, we advise that employee to file personal injuries claim in addition to any employment law proceedings. 

Guidelines to Workplace Injury Claim Compensation

A difficulty with any psychological or psychiatric injury, is its visibility. It may be easier for an assessor to determine the impact a broken leg or rib may have on individual. However, psychological damage may be hard to measure, and therefore, difficult to quantify. For that reason, when an employee initially files a complaint against their employer, for the stress, anxiety, hurt and psychological damage suffered as a consequence of a toxic working environment, the Personal Injuries Resolution Board (PRIB) often declines jurisdiction to hear the case, given the complexity of these cases. In those circumstances, the PRIB issues a letter thereby permitting the employee to issue civil proceedings in respect of their injury against their employer.

The Personal Injuries Guidelines were established by the Judicial Council on 06 March 2021, under the Judicial Council Act 2019. The guidelines are based on a draft developed by the Personal Injuries Guidelines Committee, created under section 18 of the 2019 Act. The draft identified the appropriate levels of damages that might be given for different forms of personal injuries. It is often acknowledged that determining the amount of general damages awarded for pain and suffering is a rather artificial process. It is a challenging task that has historically caused judges to make significantly different awards of damages for similar injuries. This not only goes against the principle of equality before the law but also leads to unnecessary appeals, increased costs, and strains on the limited resources of the courts. The Guidelines aim to enhance comprehension of the concepts of the evaluation and allocation of compensation for personal injuries to achieve more uniformity in awards, despite each case having its own characteristics.

The Guidelines were prepared in accordance with the requirements outlined in section 90(3) of the 2019 Act. These requirements include considerations such as the amount of damages awarded for personal injuries by courts in the State and in relevant locations outside the State, principles established by the High Court, Court of Appeal, and Supreme Court for assessing damages, guidelines for classifying personal injuries, the importance of consistency in awarding damages for personal injuries, and other factors specified in the Committee's Report sent to the Board along with the draft Personal Injuries Guidelines on 06 December 2020.

When awarding general damages, trial judges should prioritise the principles that form the basis of the Court's jurisdiction. The principles necessitate that damages awarded be equitable and fair to both the claimant and defendant. Awards should be commensurate with the injuries sustained and should be consistent with awards typically granted in cases involving injuries of varying severity, as stated by Denham J. in M.N. v. S.M. [2005] IESC 17 and Clarke C.J. in Morrissey v. HSE [2020] IESC 6. The Guidelines specify that the most severe injuries will result in a general damages judgement of around €550,000.

Judges in all courts must realise that not every harm justifies receiving compensation. Recovery is only allowed for identifiable psychological impairment in the absence of physical harm (see to: Kelly v. Hennessy [1995] 3 I.R. 253). Instances of anger, sorrow, sadness, disappointment, and humiliation do not warrant compensation, as shown in cases such as Knowles v. Minister for Defence [2002] IEHC 39, O’Connor v. Lenihan [2005] IEHC 176, and Hegarty v. Mercy University Hospital [2011] IEHC 435.

If an employee experiences grief, they may be eligible for damages under Part IV of the Civil Liability Act 1961.

Factors influencing the amount of the award will include: (i) age; (ii) disruption of quality of life and education; (iii) effect on work; (iv) influence on interpersonal relationships; (v) whether medical help was sought; (vi) type, scope, and duration of treatment received and/or medication prescribed; (vii) probability of treatment success; (viii) outlook, including any future susceptibility; (ix) the scope and/or nature of any related physical injuries.

Psychiatric Damage at Work

There are four categories of psychiatric damage generally.

Severe Psychiatric Damage

In a scenario whereby an employee suffers severe psychiatric damage as a consequence of the actions or negligence of their employer, they may be entitled to compensation of between €80,000-€170,000. In these cases, the employee will have marked problems with respect to the interference between quality of life and education, as well as an impact on work and the prognosis will be very poor.

Serious Psychiatric Damage

In a scenario whereby an employee suffers serious psychiatric damage as a consequence of the actions or negligence of their employer, they may be entitled to compensation of between €40,000-€80,000. In these cases, the employee will have marked problems with respect to the interference between quality of life and education, as well as an impact on work and the prognosis will be more optimistic.

Moderate Psychiatric Damage

In a scenario whereby an employee suffers moderate psychiatric damage as a consequence of the actions or negligence of their employer, they may be entitled to compensation of between €15,000-€40,000. In these cases, the employee will have marked problems with respect to the interference between quality of life and education, as well as an impact on work and the prognosis will be good.

Minor Psychiatric Damage

In a scenario whereby an employee suffers minor psychiatric damage as a consequence of the actions or negligence of their employer, they may be entitled to compensation of between €500-€15,000. In these cases, the employee will have achieved a full recovery.

Post-Traumatic Stress Disorder (PTSD) at Work

There are four categories of PTSD, generally.

Severe PTSD

In a scenario whereby an employee suffers severe PTSD as a consequence of the actions or negligence of their employer, they may be entitled to compensation of between €60,000-€120,000. Such cases of PTSD will involve the injured party being prevented from working completely, and all aspects of life will be badly affected.

Serious PTSD

In a scenario whereby an employee suffers serious PTSD as a consequence of the actions or negligence of their employer, they may be entitled to compensation of between €35,000-€80,000. Such cases of PTSD will involve a prognosis that projects some recovery with professional help but is still likely to cause significant disability for the foreseeable future.

Moderate PTSD

In a scenario whereby an employee suffers severe PTSD as a consequence of the actions or negligence of their employer, they may be entitled to compensation of between €10,000-€35,000. Such cases of PTSD will involve the injured party being largely recovered and any continuing effects will not be largely debilitating.

Minor PTSD

In a scenario whereby an employee suffers severe PTSD as a consequence of the actions or negligence of their employer, they may be entitled to compensation of between €500-€10,000. Such cases of PTSD will involve the injured party’s symptoms being resolved in two years.

These cases have a particular diagnosis of a reactive mental disease that occurs after experiencing or witnessing a terrible incident, leading to psychological trauma. Symptoms may consist of disturbing recollections of the traumatic experience, nightmares, flashbacks, sleep difficulty, avoidance, mood instability, suicidal thoughts, and hyperarousal. Hyperarousal symptoms may impact fundamental systems including respiration, heart rate, and bowel and/or bladder regulation.

Compensation for Workplace Stress - Conclusion

Psychological damage is difficult to measure and quantify, making it difficult for assessors to determine its impact. The Personal Injuries Guidelines were established by the Judicial Council in 2021 under the Judicial Council Act 2019 to identify appropriate levels of damages for different forms of personal injuries. The guidelines aim to enhance understanding of the evaluation and allocation of compensation for personal injuries to achieve more uniformity in awards, however, each case will depend on individual circumstances.

Please email contact@crushell.ie for further information.