01.07.2026

Construction firms warned as workplace stress becomes a growing source of discrimination and dismissal claims

UK construction employers are being warned that unmanaged workplace stress isn't just a HR concern — it can quickly become a serious legal liability.

Employment law experts at Citation are urging small firms to act before stress escalates into costly tribunal claims, with 70% of construction workers reporting that they feel moderate to extreme stress at work.

The duty of care around workplace stress runs deeper than most employers realise and failing to act on the warning signs can expose businesses to allegations of constructive dismissal or disability discrimination.

What begins as an employee struggling with workload or an unresolved conflict can, if left unaddressed, result in unfair dismissal compensation awards of up to £123,543 or 52 weeks’ gross pay, or unlimited exposure where discrimination is involved.

For small firmd without dedicated HR support, the risks are even more significant. The line between a performance issue and a mental health concern is rarely obvious, but the legal consequences of misreading it can be substantial.

Gill McAteer, Director of Employment Law at Citation, is warning businesses on what to look out for and how to manage these delicate situations: "Stress doesn't always announce itself. What looks like a dip in performance or a short-term timekeeping issue could be a sign of something deeper, and if an employer penalises an employee without recognising that, they could unknowingly be crossing into discrimination territory.

"Constructive dismissal claims often arise not because an employer acted badly in one moment, but because concerns were repeatedly raised and repeatedly ignored. The businesses most at risk are the ones that aren't paying attention.

"The good news is that managing this doesn't require expensive wellbeing programmes. It requires consistent, vigilant management practices — and knowing what to look for before it becomes a problem."

Stress itself is not classified as a disability under the Equality Act 2010, but it is frequently a symptom of conditions that are. Where stress is long-term and substantially affects an employee's day-to-day activities, the legal protections that apply to disabled employees — including the right to reasonable adjustments — will apply.

McAteer adds: “Employers who miss escalating stress in a disabled employee or fail to review whether existing adjustments are still working risk a discrimination claim. Penalising someone for irritability, reduced concentration, or a drop in output — without first exploring the underlying cause — can amount to exactly that.”

When stress reaches a breaking point, some employees conclude that resignation is the only option. If that resignation is deemed to be the result of an employer's serious failings — persistent inaction, inadequate support, or a failure to provide a safe working environment — it can give rise to a constructive dismissal claim.

A successful claim can leave employers facing a basic award of up to £22,530, plus a compensatory award of up to £123,543 or 52 weeks' gross pay — whichever is lower — with unlimited exposure where discrimination is involved.

Citation is advising SME construction owners to put the following practices in place now:

Hold a return-to-work interview after every absence — even a single day off. Document what you hear. Patterns across a team often point to a structural problem, not an individual one.
Don't wait for a concern to be raised twice. Repeated, unaddressed stress is where constructive dismissal claims are built. Log what was raised, what action was taken, and when.
If a disabled employee's stress is rising, revisit their reasonable adjustments. Escalating stress is often a signal that current adjustments are no longer working — act before the employee has to ask again.
Put mental health first aiders across departments, not just in HR. Early signs surface weeks before a manager notices. Broad coverage makes the difference.
Schedule regular, low-stakes wellbeing check-ins. These build the trust and familiarity that make it easier to spot subtle changes in behaviour before they escalate.