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Stress Leave

HR Policies

13 May 2025 (Last updated 3 Dec 2025)

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A survey conducted by Statistics New Zealand has found that 1 in 5 New Zealand workers report always or often being stressed by work. In addition, New Zealanders who reported high workloads have two times greater odds of experiencing high psychological distress. These numbers are a growing concern for small businesses and employers who are already juggling multiple roles and responsibilities.

The guide below explains workplace stressors and how employers can manage stress leave requests.

Stress in the workplace

There are several reasons why employees may be stressed in the workplace. Some of the most common reasons are:

  • Unreasonable workload.
  • Bullying  in the workplace.
  • Restructuring of the workplace.
  • Change of position, duty, or responsibilities.
  • Dangerous work environment with a lack of health and safety precautions.
  • Toxic work environment.
  • Exposure to trauma.
  • Isolated working conditions.

Common signs of stress

Often, the signs of stress are not made clear to everyone in the workplace. It is common for employees to hide the symptoms of stress, out of fear of being punished or judged by others.

However, there are common behaviour patterns for employers to look out for:

  • Anxiety.
  • Reduced productivity.
  • Illness and disease.
  • Antisocial behaviour.
  • Low morale.
  • Lack of engagement.

A combination of one or more of these symptoms is a good indicator that a person is stressed. Of course, due to the complex nature of mental and physical stress; it is important to avoid jumping to conclusions. In conversations with employees, employers must be sensitive and considerate of any support that can be provided.

Stress leave

While stress leave is not defined in New Zealand legislation, employers have health and safety obligations to provide a safe work environment for all employees. This includes monitoring, identifying, and managing workplace stress. Stress leave is an optional type of leave that employees may get access to in case of workplace stress. Whether this leave is available, paid or unpaid, is completely up to the employer.

If an employee becomes ill due to stress, they can take sick leave under the normal conditions of sick leave. An employee who needs additional time off beyond their sick leave entitlement can negotiate with their employer regarding the length of leave and whether the leave is paid or unpaid.

It is up to the employer to decide if they are able to accommodate additional time off of work due to stress. However, an employee can dispute their decision if they feel the amount of time off has not been adequate.

Managing stress in the workplace

Employers have an obligation to provide a safe and fair work environment for all employees.

To comply with their duty of care, employers must monitor employee performance, workload, and the kind of tasks they are performing. If an employer discovers signs of stress or suspects an employee is stressed, these concerns should be discussed so a solution can be found to manage the problem.

Whether or not the stress is caused by the workplace, employers can advise employees to visit a doctor or employee assistance program to identify the source of the problem. Employers are not legally required to do this, but it is part of their responsibility to reduce threats to health and safety in the workplace.

Employer obligations around stress leave

In an ideal situation, employees would not need stress leave as employers will mitigate stress and create positive and healthy workplaces. However, in situations where the need for stress leave does arise, what are employer obligations in New Zealand?

Stress is classified as a mental health concern and forms part of an employer’s health and safety responsibilities. Employers must handle any situation that concerns stress responsibly and support the employee as needed.

Other than the health and safety responsibilities, there are multiple benefits to reducing stress and improving mental well-being in the workplace, such as:

  • When employees are healthy, their productivity is boosted.
  • Improves company culture and morale.
  • Makes recruitment easier.
  • Employees are motivated to stay committed to their roles and the company.

If an employee has been diagnosed as suffering from work-related stress, the employer should review the employee's workload, duties and overall working environment to assess whether these have contributed to the employee's stress.

It is recommended to have a meeting with the employee to discuss their stress, work and how to prevent future absences once they are fit enough to attend. You may need to investigate if there is a wider issue that needs to be addressed or if the business is able to make reasonable accommodations to facilitate the employee's return to work.

Stress leave policy

If an employer wants to implement stress leave in their workplace, then it is highly recommended that they establish a stress leave policy to outline its parameters. The policy should set out clear and consistent practices for requesting stress leave and the potential responses to those requests.

It will communicate to the employees that they can discuss their concerns without retribution or judgment from the organization. The stress leave policy should outline a reasonable course of action to manage work-related stress and assist employees in any way possible for them to recover and get back to work.

The policy can include:

  • Reason for taking leave (can be broad if the employee doesn’t wish to disclose).
  • Duration of the leave.
  • Return to work plan.
  • Certificates/Evidence necessary.

In the stress leave policy, emphasise the type of evidence considered acceptable by the company. An employer can ask an employee to submit a medical certificate although the certificate doesn’t need to specify anything other than their unfitness for work.

Before you draft a stress leave policy, consider discussing it with an employment relations professional and a health professional. This will support in devising a relevant and practical stress leave policy for everyone.

Strategies for employers to reduce workplace stress

There are some ways that employers can mitigate or reduce workplace stress:

  • Balancing job demands to employee skills and capacities.
  • Setting realistic pace and timelines.
  • Having clear and consistent policies on behaviour and work standards.
  • Having regular meetings with the team.
  • Having regular meetings with the employee in a 1:1 setting.
  • Encouraging employees to take leave as needed.
  • Encouraging a positive work culture.
  • Having flexible work arrangements.
  • Regularly conducting surveys to understand team morale.
  • Regularly conducting risk assessments and health and safety surveys.
  • Offering training to employees for hard and soft skills.

Build healthy workplaces with Peninsula

Workplace stress can have a huge impact on mental well-being. It’s not just mental health, studies have found that ongoing stress can lead to physical conditions such as heart disease or headaches. Employers have a legal responsibility to mitigate risks to mental health, but they also have a moral responsibility to their employees on a personal level.

Managing business’ needs as well as your employees’ welfare needs can be a difficult balance. Peninsula offers support and guidance to small businesses in New Zealand looking to implement stress leave and improve their workplace culture. Our resources include tools, training, software, policies, and documents that can help draft a stress leave policy, boost your company’s productivity, and create effective systems of work. Call our expert team for free initial advice.

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HR Policies

Email usage policy

While email has been around for years, it is still a mode of communication that involves a lot of overseeing and supervision. It’s tricky nature and lack of tone can make it an easy way for things to get lost in translation. It is hard to imagine running a business without email because it is such a convenient, flexible and immediate tool. But the fact it is so easy to send an email can result in misuse or abuse. A carelessly phrased email forwarded to lots of recipients can quickly damage your reputation or break confidentiality, even when unintended. In this best practice guide for employers, we explain email usage within the workplace and recommend a standard email usage policy that you can implement immediately. Please note that the information is general and does not constitute advice. If you need help with policies, consult an employment relations professional. Email usage in the workplace There are many risks involved with email usage. Having a company wide policy for email usage and communication can protect you and your employees from potential risks. Your employees may send emails without considering the risks of confidentiality or even security. Without a clear written and established company policy, you cannot manage security and safeguard your business. As an employer, you are liable for the acts and omissions of your employees. Drafting an email usage policy When you draft your email policy, it should keep certain factors in mind: Decide the extent to which employees can use the Internet and email for personal purposes. You should set out the consequences for not following the policy, including disciplinary action and summary dismissal. The use of email and internet should be consistent with employee responsibilities and should comply with all other rules and procedures. Avoid permitting activities which might be illegal, offensive, or likely to have negative repercussions. Depending on the business you are in, a higher level of security could be useful on the email. The email usage policy should also mention styles of communication for outside work hours or outside working days. General email usage policy requirements The policy should be made available to all staff and stored in the company internal communication network, where it can be accessed anytime. Be very clear and explicit as to what is considered forbidden. Clearly set out what information gets recorded, logged, and who has access to the information. Mention why the improper use of email can be risky and that it may pose a threat to system security and the legal liability of the organisation. Outline in plain language how the company will monitor staff compliance with company rules on acceptable use of email and browsing. The policy should be regularly reviewed in accordance with the development of the internet and information technology. Monitoring email usage There are currently no laws prescribing the prohibition of monitoring an employee’s emails or Internet usage. However, there is controversy about the grey area of ‘telecommunications’ and if it includes emails and internet. While many companies monitor email usage, the key is it to do with caution and respect: Be open about monitoring the communication channels. Your employees have a right to know that their email and internet use is monitoring. Limit personal use and set restrictions clearly. Do not intrude on the privacy of the employee and provide a mechanism for employees to delete email from the system. Any personal information that is found that concerns employees must be used fairly. Establish a business purpose for monitoring (working time is used productively or checking if they have logged in). Do not monitor websites, viewed content unless the business purpose cannot be achieved by recording time spent on the Internet. Monitoring should be limited to an automated process. You should not monitor the content of the emails unless the traffic record alone is not sufficient. If you are using the results of the monitoring, give the employee an opportunity to explain the results. Disciplinary action for improper email usage An employer may dismiss an employee for improper email usage or misuse of workplace internet resources provided the employer: Clearly demonstrates the use was an unauthorised use as defined by the email usage policy or electronic communications policy. Investigates the employee in accordance with any workplace disciplinary policy and workplace relations law. Gives the employee an opportunity to respond to the allegations. Implement effective policies with Peninsula The changing world of telecommunications means it can be tricky to ensure the safety of your employees and your business. Having clear and established policies can make a world of difference for your business. We understand small businesses may not always have the resources to create and implement effective policies for employment relations and workplace health and safety. At Peninsula, our goal is to provide tailored services and support that meet your needs as a business owner. Peninsula advisers can help you build and establish clear and sturdy email usage policies. For peace of mind, call our  advice line. This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.

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