Mind at Work:
Mental Health in the Asia Pacific Workplace
NEW ZEALAND

Regulations and Policy Requirements
Is there a specific regulation in your jurisdiction that regulates mental health in workplace? Are employers required to have policies regarding mental health, i.e. to promote mental health awareness and protection?
There is no explicit requirement for employers to have dedicated mental health policies.
However, there is an explicit legislative duty that requires employers to take all reasonable steps to ensure the physical and psychological safety of their employees. That duty is likely to require employers to consider what steps may be appropriate in their particular workplace to guard against psychosocial risks (which includes mental health).
Steps that are commonly implemented include having a dedicated policy and running training sessions or other campaigns to promote mental health awareness.
Leave Entitlements
Are employees with diagnosed mental health conditions entitled to paid or unpaid leave? If so, under what laws/policies and conditions?
Mental health conditions do not have a specific statutory leave category.
Instead, all employees are entitled to up to a minimum of 10 days' paid sick leave per annum (after the first 6 months of employment) under the Holidays Act 2003. Some employers also choose to provide increased paid sick leave entitlements.
If an employee has utilised all paid sick leave entitlements than any further absences for mental health reasons would be unpaid.
Employer Management of Suspected Conditions
May an employer require an employee with suspected mental health issues to leave the workplace or take time off? What level of evidence is required?
In order to lawfully require an employee to leave the workplace due to a suspected mental health condition, an employer would need to have reasonable grounds to suspect that the employee (a) may pose a health and safety risk to themselves or others; or (b) may be acting a manner that is (or is potentially) seriously damaging to the employer's customers, other staff or the employer's reputation.
An employer may establish reasonable grounds for their belief as a result of observations of the employee's behaviour or actions. The employer must consult with the employee about their concerns before making any final decision to remove the employee.
The employer will need to take into account any medical information offered by the employee and may need to obtain further medical guidance on how best to accommodate the employee's health concerns/condition.
Medical Examination / Fitness for Work
Can an employer require an employee suspected of having mental health issues to undergo a medical examination or seek medical attention? Are there limits or procedural safeguards?
If there are reasonable grounds to suspect an employee is suffering from a mental health condition, then an employer may request medical information from the employee.
In the first instance, it is expected that an employer will request that the employee share any medical reports from their own practitioner with the employer.
If the employee is reluctant to share that information, or the employer is not satisfied with that information, then the employer can request that the employee undergo an independent medical examination.
For any independent examination to go ahead, the employee must consent to that process (even if the relevant employment agreement purports to obtain that consent in advance).
Medical Costs / Insurance
Are treatment costs for mental health conditions covered by statutory medical insurance or employer-provided benefits?
There is statutory cover (via New Zealand's government Accident Compensation regime) for certain treatment costs and a proportion of lost wages for mental health conditions where the mental health condition is caused by specific circumstances. Those circumstances being a mental health condition directly resulting from: (a) a physical injury; (b) medical treatment or surgical error; (c) a sudden or severe work-related traumatic event; or (d) sexual abuse or assault.
Outside of the limited statutory cover provided, there are no mandatory insurance provisions or employer benefits. Some employers choose to provide employees with access to subsidised private healthcare arrangements. Any coverage for mental health conditions under those private arrangements would be dependent on the relevant policy wording.
Occupational Disease / Work-related Illness
Can mental health conditions be classified as occupational illnesses and be covered under occupational injury insurance? What criteria must be met?
New Zealand's workplace regulator (WorkSafe) includes mental health conditions as a workplace-related safety risk.
However, New Zealand's statutory insurance regime does not separately define mental health conditions as an occupational injury justifying cover under the Accident Compensation regime.
Instead, cover is only provided where the mental health condition is caused by certain limited circumstances. Those circumstances being a mental health condition directly resulting from : (a) a physical injury; (b) medical treatment or surgical error; (c) a sudden or severe work-related traumatic event; or (d) sexual abuse or assault.
Disability Protections
Can employees obtain disability benefits or protections due to mental health conditions? Does the law recognize mental illness as a disability?
A mental health condition is included within the definition of a 'disability' and protected under New Zealand's Human Rights Act which prohibits any discriminatory conduct as a result of the mental health condition.
If the condition is sufficiently serious then the employee may qualify for certain government benefits on either a temporary or permanent basis.
Termination
Can an employer terminate an employee with a mental health condition: (i) when the employee is unable to return to work; or (ii) for other business reasons unrelated to the condition? What legal risks (e.g., unfair dismissal, discrimination) arise?
An employer may terminate:
(i) If the employee cannot return to work: Possible if incapacity is proven and prolonged. An employer is expected to provide the employee with a reasonable time to recover (which could be six months depending on the employer's size and nature of the role) and must explore other reasonable accommodations for the employee. The employer must also follow a good faith consultation process before deciding to terminate.
(ii) For other reasons: If the employer can demonstrate independent reasons (e.g. a restructuring) then the employer can terminate after following a good faith process. The employer must ensure that their reasons are entirely independent of the employee's health to minimise the risk of a discrimination and/or unfair dismissal claim.
Confidentiality and Data Protection
What are the employer’s obligations regarding confidentiality, collection, use and storage of employee mental health information and medical records?
Under the Privacy Act 2020, employers must keep employee medical information confidential and secure. Employers must only collect/use/disclose health data for a lawful basis or with consent.
Reasonable Accommodation
Is the employer required to provide reasonable accommodation to employees with mental health conditions? Examples: flexible hours, reduced workload, remote work
Yes. An employer in New Zealand is required to provide reasonable accommodations for an employee with a mental health condition. Reasonable accommodations may include changes to the employee's duties, working environment or hours.
Anti-Discrimination
Are mental health conditions protected under anti-discrimination laws? What conduct constitutes discrimination?
Yes. Mental health is protected as a prohibited ground of discrimination under the Human Rights Act 1993 which expressly includes psychiatric illnesses or any intellectual or psychological disability or impairment within the definition of 'disability'.
Discrimination in an employment context includes an employer either directly or directly, and by reason of the employee's disability: (a) refusing to employ someone; (b) providing less favourable conditions of employment, opportunities or benefits; (c) terminating the employee or causing them any other detriment ; or (d) causing the employee to retire or resign.
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