Mental health in the workplace: is your SME doing enough to stay compliant?

1. The legal baseline: mental health is part of health

Under the Health and Safety at Work etc. Act 1974, employers must ensure, so far as reasonably practicable, the health, safety and welfare of employees. This duty is not limited to physical risks - UK regulators (including the HSE) make clear that it includes mental health and work-related stress.

Employers are expected to:

• Identify workplace risks (including stress-related risks);

• Take reasonable steps to reduce those risks; and

• Review and update measures where needed.

In parallel, the Equality Act 2010 protects employees whose mental health condition meets the definition of a disability. Where this applies, employers must make reasonable adjustments, such as:

• Adjusting workloads or deadlines;

• Offering flexible working arrangements; and

• Modifying management approaches or environments.

A condition must have a substantial and long-term adverse effect on day-to-day activities to qualify.

2. Prevention matters: managing work-related stress

UK law does not prescribe a specific format for assessing mental health risks, but employers are expected to proactively manage work-related stress.

The HSE provides widely recognised guidance through its Management Standards for Work-Related Stress, which focus on areas such as:

• Workload demands;

• Control over work;

• Support from managers;

• Workplace relationships;

• Role clarity; and

• Organisational change.

In practice, this means it is not enough to respond after issues arise. Employers should be able to demonstrate that they have:

• Considered potential stress risks;

• Taken reasonable steps to mitigate them; and

• Monitored how those measures are working.

3. Avoiding “wellbeing-washing”

Many SMEs invest in visible wellbeing perks (such as gym memberships or wellness apps) but overlook the underlying causes of stress.

While these initiatives can be positive, they do not replace the need to address:

• Excessive workloads;

• Unclear expectations;

• Poor management practices; or

• Lack of support or communication.

Effective wellbeing strategies focus on how work is designed and managed, not just what benefits are offered.

4. Where best practice goes further

Legal compliance sets the minimum standard. Many SMEs choose to go further by embedding wellbeing into their culture and processes.

Common best practices include:

• Manager training: helping managers recognise and respond to signs of stress;

• Regular 1-to-1s: creating space for open conversations about workload and wellbeing;

• Flexible working: implementing a flexible working policy; and

• Employee Assistance Programmes (EAPs): providing access to confidential support for employees.

These measures are not all strictly required by law, but they can:

• Improve employee retention and performance;

• Reduce absence and burnout; and

• Demonstrate that the business is acting reasonably if issues arise.

5. The role of ISO 45003

Some organisations are also turning to ISO 45003, the international standard for managing psychosocial risks at work.

While not legally binding, it offers a structured framework for:

• Identifying workplace stressors (e.g. workload, communication, job insecurity);

• Assessing their impact; and

• Implementing and reviewing controls.

For SMEs, aligning with ISO 45003 can be a useful way to:

• Strengthen internal processes;

• Demonstrate a commitment to best practice; and

• Support broader health and safety compliance.

6. Practical steps for SMEs

If you’re reviewing your approach during Mental Health Awareness Week, focus on practical, documented improvements:

• Review your staff handbook: ensure it includes a clear wellbeing or mental health policy;

• Assess workload and expectations: check whether roles are realistically structured;

• Standardise manager check-ins: encourage regular, documented conversations about workload and support; and

• Review risk assessments: include consideration of work-related stress alongside physical risks.

Summary: A Proactive Approach

Supporting mental health at work is no longer just a “nice to have.” It forms part of an employer’s broader duty to provide a safe working environment.

By taking a proactive, structured approach that is grounded in both legal requirements and good practice, SMEs can:

• better support their teams;

• reduce legal and operational risk; and

• build a healthier, more sustainable workplace.

Key takeaways for SMEs