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Recent cases concerning bullying and harassment in the workplace have highlighted the potential cost to employers. By Edward Goodwyn
Tackling bullying and harassment is a substantial challenge for employers. Recent cases have highlighted the financial penalties employers face when they allow poor management practices, in particular the case of Helen Green v DB Group Services (UK). Unfortunately for employers, following the recent decision of Majrowski v Guy's and St Thomas's NHS Trust in the House of Lords, it now appears harder for employers to eliminate the risk of claims.
According to the Health & Safety Executive, 12.8 million working days were lost due to stress, depression and anxiety in 2004-05. A large number of these were due to workplace bullying and harassment. Bullying results in low morale and productivity levels, high staff turnover and bad public relations for employers, and thus carries heavy financial consequences.
Claims for personal injury
To say that bullying and harassment claims can be expensive is an understatement. This is illustrated by a recent personal injury (PI) claim brought by an employee against Deutsche Bank (Helen Green v DB Group Services (UK)).
The employee, Green, was awarded a reported pound 828,000, plus her legal costs, after the High Court found that she had suffered two nervous breakdowns as a result of bullying and harassment from four female co-workers. According to the High Court, there had been a campaign of spiteful behaviour by these co-workers that included a refusal to speak to Green. In addition, one of Green's male colleagues bullied her by seeking to advance himself at her expense and by acting in a disrespectful manner. Reports suggest that the bank may appeal against this decision.
The High Court followed the principles laid down by the Court of Appeal in Sutherland v Hatton. The case confirmed that for an employer to be liable, the PI must be reasonably foreseeable. The High...