The legal landscape surrounding workplace health and safety has expanded considerably over the past few decades. While physical hazards have traditionally been the primary focus of occupational health and safety legislation, the conversation in Alberta and the rest of Canada is shifting toward psychological safety. This shift raises a key question: Can employers be held legally liable for mental health risks in the workplace?

In Alberta, the answer is increasingly yes. Employers have legal duties under the Occupational Health and Safety Act (OHSA) to provide a workplace that is not only physically safe but also psychologically healthy. As awareness grows around mental health issues and psychological hazards such as harassment, bullying, and chronic stress, the law is evolving to reflect the real-world impacts of these concerns on workers’ well-being.

What Is Psychological Safety?

Psychological safety refers to a workplace environment where employees feel safe speaking up, taking interpersonal risks, asking for help, admitting mistakes, and expressing ideas without fear of punishment or humiliation. It is an essential component of a healthy workplace culture and strongly correlates with higher productivity, innovation, and team cohesion.

In a legal context, however, psychological safety goes beyond organizational culture. It encompasses protection from psychological harm (including harassment, violence, bullying, discrimination, and unmanaged stress) that can lead to mental health injuries such as anxiety, depression, or post-traumatic stress disorder (PTSD). If not properly addressed, these risks can become legal liabilities for employers.

Employer Duties Under Alberta’s OHSA

Under Alberta’s Occupational Health and Safety Act, employers have a statutory obligation to ensure the health and safety of workers. This includes protecting employees from both physical and psychological hazards. Alberta’s OHSA recognizes the importance of psychological health and includes protections against workplace violence and harassment.

Employers must:

• Ensure the health, safety, and welfare of workers at the worksite
• Take all reasonable steps to eliminate or control identified hazards
• Develop and implement policies and procedures addressing workplace harassment and violence
• Investigate complaints and incidents of psychological harm

Failure to fulfill these obligations can lead to enforcement actions by occupational health and safety officers, including stop-work orders, administrative penalties, or prosecution.

Workplace Harassment and Mental Health

Workplace harassment is one of the most common sources of psychological injury in workplaces. Harassment can include a wide range of behaviours, from verbal abuse and intimidation to exclusionary tactics or inappropriate jokes, that have the effect of humiliating, degrading, or isolating an employee.

Alberta’s Occupational Health and Safety Code defines workplace harassment broadly, and employers must implement both preventive policies and responsive procedures to deal with it. Notably, harassment does not need to be intentional to be actionable. What matters is whether the behaviour created an intimidating or hostile work environment and whether the employer responded appropriately.

If a worker experiences a psychological injury due to workplace harassment and the employer failed to address the issue despite being aware (or reasonably expected to be aware) of it, the employer may be found liable for failing to ensure a psychologically safe workplace.

Employer Liability and Workers’ Compensation Claims

Psychological injuries caused by work-related events may be compensable under Alberta’s Workers’ Compensation Board (WCB) system. In recent years, WCB Alberta has expanded coverage to include chronic psychological injuries, including those stemming from long-term exposure to workplace stress or harassment. This coverage applies where the psychological injury is diagnosed by a qualified healthcare professional and is clearly linked to the worker’s job.

This has both practical and legal consequences for employers. First, WCB claims arising from mental health injuries can result in higher premiums. Second, WCB coverage does not necessarily insulate employers from other forms of liability, particularly if a worker brings a human rights complaint, constructive dismissal claim, or civil lawsuit for damages.

Human Rights Legislation and the Duty to Accommodate

In addition to obligations under the OHSA, Alberta employers also have responsibilities under the Alberta Human Rights Act (AHRA). Mental health conditions such as depression, anxiety disorders, PTSD, and bipolar disorder are protected under the ground of disability.

This protection triggers an employer’s duty to accommodate employees with mental health conditions, up to the point of undue hardship. Accommodation may include modified duties, flexible scheduling, temporary leaves of absence, or changes to the work environment. Employers who fail to recognize or accommodate a legitimate mental health issue may face a complaint before the Alberta Human Rights Commission.

Moreover, even in the absence of a formal diagnosis, if an employee exhibits symptoms of psychological distress and the employer either ignores or exacerbates the issue, this could support claims of discrimination, failure to accommodate, or constructive dismissal.

Constructive Dismissal and Psychological Harm

Constructive dismissal occurs when an employer fundamentally changes the terms of employment or creates an intolerable work environment, prompting the employee to resign. A psychologically unsafe workplace, particularly one where harassment is present or where the employee’s mental health is not reasonably accommodated, can support a claim of constructive dismissal.

In such cases, the employer may be liable for damages equivalent to wrongful dismissal, including severance pay and lost benefits. Courts have increasingly recognized the seriousness of psychological harm in employment contexts, especially when employers fail to take mental health concerns seriously or retaliate against employees who raise them.

Psychological Safety as a Proactive Strategy

For employers, the best legal strategy is a proactive one. Fostering psychological safety in the workplace is not only a matter of ethical leadership but also a sound risk management practice. Steps employers should consider include:

• Conducting regular workplace assessments to identify psychological hazards
• Training managers and staff on recognizing and responding to mental health issues
• Establishing and enforcing clear anti-harassment and anti-violence policies
• Creating confidential, accessible channels for reporting concerns
• Documenting all complaints and the actions taken in response

These steps can help demonstrate due diligence if an OHS investigation, WCB claim, or legal proceeding arises. They also create a more productive, respectful, and legally compliant work environment.

Employee Rights and Employer Best Practices

Understanding your rights is critical from the employee’s perspective. If you are experiencing psychological harm in the workplace, it is important to document incidents, report concerns through the appropriate internal channels, and seek medical attention where needed. You may also wish to consult a lawyer to determine your legal options.

For employers, best practices involve both prevention and response. That means addressing issues at the earliest stage, taking complaints seriously, investigating thoroughly and fairly, and providing support where required. A failure to do so is not only a breach of legal obligations but also a significant business risk, potentially leading to reputational harm, employee turnover, and financial liability.

The Legal Future of Psychological Safety

As awareness of mental health grows, we can expect Alberta’s employment law framework to continue evolving. There is increasing recognition in the courts, among regulators, and within professional organizations that psychological hazards are as serious as physical ones.

Employers who invest in training, policies, and workplace culture today will be better positioned to manage tomorrow’s risks. Psychological safety is not a buzzword, but a legal standard that employers must meet and one that employees are increasingly willing to assert.

Getz Collins and Associates: Calgary Employment Lawyers Advising on Occupational Health and Safety Issues

Whether you are an employer seeking to understand your compliance obligations or an employee dealing with a psychologically unsafe workplace, Getz Collins and Associates can help. Our skilled employment lawyers can assist in reviewing workplace policies, advising on accommodation strategies, and representing employers or employees in workplace health and safety matters, human rights complaints, or wrongful dismissal claims. To book a consultation, please call (587) 391-5600 or contact us online.