Insurers are breathing a sigh of relief after a key Court of Appeal decision on workplace stress, according to law firm Halliwell Landau.

The Court of Appeal has closed the door to potentially thou ...

Insurers are breathing a sigh of relief after a key Court of Appeal decision on workplace stress, according to law firm Halliwell Landau.

The Court of Appeal has closed the door to potentially thousands of claims by confirming there must be clear signs of psychiatric harm before an employer is under a duty to act.

Biba technical services head Peter Staddon said: "It's good news for insurers, hopefully it will reduce claims, but insurers should also be encouraged by the ruling to defend many claims rather than simply agreeing to pay up."

David Pugh, an associate at Halliwell Landau, which represented UK Coal in Bonser v UK Coal, said: "Had the Court of Appeal not overturned the decision the floodgates would have been opened for almost any hard-working employee with a psychiatric injury to claim from his employer for workplace stress.

"Common sense has prevailed, but it is still a clear reminder to employers about the importance of putting policies and procedures in place to guard against workplace stress.

"The Court of Appeal, headed by the Master of the Rolls, unanimously rejected the claimant's argument and reverted to the well established authority of Hatton v Sutherland, saying that there must be clear signs of impending psychiatric harm to the individual before the employer is under a duty to act."

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