As mental health concerns continue to gain prominence in the workplace, employers need to be aware of how mental health challenges can affect both their employees and the organization as a whole. A growing body of evidence suggests that failure to address mental health issues can lead to legal claims, decreased employee productivity, and higher turnover rates. For instance, according to the World Health Organization, depression and anxiety cost the global economy about $1 trillion each year in lost productivity.
A 2024 study by AXA Philippines reveals that 87% of Filipino workers experience work-related mental health issues, surpassing the global average of 76%. This highlights the urgent need for Human Resources departments to implement comprehensive mental health policies. Neglecting these initiatives can expose companies to legal risks, including potential penalties related to a failure to provide a safe and supportive work environment, as required by the Philippine Mental Health Act, which mandates employer responsibility for mental health support.
To mitigate these risks, HR teams must create and enforce preventive measures to ensure a supportive, legally compliant environment. This includes establishing clear policies aligned with local regulations, such as the Mental Health Act (RA 11036) and the Occupational Safety and Health Standards Act (RA 11058). These policies should define how mental health concerns will be addressed, ensuring confidentiality, protection from discrimination, and access to support. Clear guidelines foster consistency in responses while demonstrating a company’s commitment to maintaining a mentally healthy workplace.
Training and awareness programs are another key element in mitigating legal risks. Educating both employees and managers on mental health issues, their legal obligations, and how to recognize signs of distress can reduce misunderstandings and create a culture of empathy and support. This type of training should also emphasize the importance of open communication channels where employees can safely disclose mental health challenges without fear of judgment. Moreover, creating a culture that reduces stigma around mental health—through workshops and regular conversations—ensures that employees feel comfortable seeking help when necessary.
In addition, offering accessible mental health support services is a crucial component. By providing services like Employee Assistance Programs (EAPs), wellness programs, and health insurance coverage for mental health treatments, companies demonstrate their commitment to employee well-being. Peer support networks can also be effective in fostering a supportive work environment where employees share their experiences and learn from each other in a safe space. Ensuring that employees are aware of these resources and how to access them is vital for prevention.
Lastly, continuous monitoring and improvement of workplace conditions can help identify potential risks before they escalate into legal issues. Regular feedback mechanisms such as employee surveys can uncover stressors while adjusting workloads and offering flexibility can prevent burnout. A workplace that values respect, inclusion, and psychological safety fosters resilience, ultimately reducing the likelihood of mental health-related claims. By investing in these strategies, HR teams can not only prevent legal complications but also enhance employee engagement and retention, benefiting both the workforce and the organization.
Protect your workplace from mental health-related legal risks while fostering a supportive environment. Contact Lockton Philippines today to ensure your HR policies align with the Philippine Mental Health Act. Reach out to info.philippines@lockton.com to get started.
