Employee Engagement and Productivity Psychological Health, Disciplinaries, And The Employments Rights Bill Survey

Emphasising the Psychological Health of Health & Safety, Getting Disciplinaries Right & Tough Reforms From the Employment Rights Bill Survey.

• Why Psychological Health and Safety at work matters
• How to ensure grievance and disciplinary procedures are robust
• Most Challenging Reforms for Employers – Insights from Employment Rights Bill Survey

With World Mental Health Day taking place in October, we thought it was a suitable time to bring the psychological health aspect of ‘Health and Safety’ into focus. We examine the most challenging reforms employers face, based on the recent Employment Rights Bill survey, and offer some guidance on grievance and disciplinary procedures. This all connects well with our spotlighted tribunal case that highlights why getting the process right is so important!

In today’s complex employment landscape, organisations face new challenges in balancing well-being, compliance, and culture. From the increasing focus on psychological safety to tightening employment laws, companies must safeguard both their staff and their procedures.

By: Kimberly Bradshaw, CEO, Spotlight HR

October 2025.

Why Psychological Health and Safety at Work Matters

Workplace wellbeing is no longer just a “nice to have” — it’s a legal and moral obligation. Mental health and safety involve preventing harm: addressing stress, bullying, harassment and burnout before they damage an individual. Naturally, this often affects the organisation as well.

Creating a psychologically safe workplace means building a culture where employees feel comfortable raising concerns, sharing ideas, and admitting mistakes without fear of blame. It’s not merely about compliance; it forms the basis of engagement and innovation.

Practical steps include:

• Regular check-ins and open communication channels
• Anonymous feedback options to flag issues early
• Training managers in awareness, empathy, listening, and conflict resolution
• Develop policies that safeguard and empower employees
• Ensure grievance and disciplinary processes recognise the human beings behind each situation.

When employers show genuine care about mental well-being, it boosts retention, decreases absence, and improves performance.

At Spotlight HR, we help organisations build cultures that promote openness, respect, and trust. Because when people are well, businesses do well too.

Most Challenging Reforms for Employers

The upcoming Employment Rights Bill continues to transform the HR landscape. From day-one rights for flexible working requests to redundancy protections for new parents and predictable contracts for zero-hours workers, employers are facing a wave of change.

Spotlight HR’s recent survey found that 62% of respondents feel that keeping policies up to date is their most significant compliance challenge.

The key is preparation: auditing policies now, reviewing contracts, and ensuring line managers understand the implications.

Your take-home: The pace of reform is accelerating, and proactive HR planning is now essential. Begin reviewing your policies, contracts, and manager training immediately, and you’ll be the one who remains compliant and stays ahead of the curve.

Making Disciplinary and Grievance Procedures Watertight

Few aspects of HR pose a greater risk than disciplinary and grievance processes. Poor management of these can result in lowered morale, reputational damage, and expensive tribunal claims.

To make procedures watertight:

• Follow the ACAS Code of Practice — fairness, consistency and transparency are key.
• Document everything: clear, accessible policies and contemporaneous notes are your best defence.
• Conduct a thorough and impartial investigation before proceeding.
• Allow employees to respond: present evidence beforehand, hold a fair hearing, and ensure the right to appeal.
• Make reasonable adjustments where necessary.
• Conduct regular training for managers and review processes consistently.

Your take-away: Procedural fairness isn’t just about avoiding legal risks; it’s about building trust and showing respect to everyone involved. A proper process safeguards your organisation’s integrity, the culture you aim to uphold, and your staff.

Tribunal in Focus: The Barclays Case

A recent case at the Glasgow Employment Tribunal shows how even large organisations can fall foul of procedural fairness.

Barclays dismissed financial adviser Mr Omar Nayfeh for alleged sexual misconduct after he made inappropriate comments to a younger colleague. Although the tribunal accepted that one of the comments had been made and was “reckless and inappropriate”, it ruled the dismissal unfair due to significant flaws in the investigation.

Key procedural failings included:

• Expanding allegations after the hearing without allowing Mr Nayfeh a chance to respond
• Relying on interview notes rather than first-hand evidence
• Failing to interview the key witness directly
• Unnecessary delay in communicating the outcome

Employment Judge Whitcombe concluded the process was “seriously flawed”, stressing that investigators must focus equally on evidence of innocence as on guilt.

Your take-home: Even when misconduct appears clear-cut, a poorly handled process can render a dismissal unfair – and costly.

Final Thoughts:

Psychological safety, robust processes, and awareness of reform aren’t just HR trends; they’re the hallmarks of responsible leadership. Getting your policies and procedures in place – and following them – will protect your people, your business, and your reputation.

If you’d like to review your policies or prepare for upcoming legislative changes, Spotlight HR can help ensure your organisation stays compliant, fair, and future-ready.

Spotlight HR is a strategic partner to many businesses across London, East Sussex and the UK. 

From individual outsourced projects to assisting your in-house function, our experienced team specialises in HR services for SMEs.