In response to the recent groundbreaking case where an employee of Birmingham City Council was awarded £67,000 as a result of mental stress at work (click here for more details), the Andrea Adams Trust says companies must review their working practices to avoid personal injury claims. Company liability insurers must also look at how employers with good practices can be protected from the increase in cost of liability insurance as a result of others' poor employment practices.

"By reviewing their management styles and practices, companies can greatly reduce the likelihood of litigation, stress and harassment which is actually a reasonably foreseeable hazard," said Lyn Witheridge, the Trust's chief executive.

"The review should include an examination of job design, communication channels, workloads and the training and support provided to enable employees to perform in their role. It is therefore vital that employers put in place effective policies and procedures in order to eradicate bullying and harassment in the workplace."

The Trust highlighted the fact that employers should be aware that while recent cases were brought as a civil action, they also have a statutory duty to provide safe systems of work. Failure could bring penalties under criminal law.