The big debate: should employers be fined for unhealthy workplaces?

With rates of economic inactivity on the rise, a leading think-tank has suggested companies that fail to provide a healthy work environment should face financial penalties

Firms that fail to provide healthy working conditions should face regulatory action, including fines and public censure, according to the Institute for Public Policy Research (IPPR), a left-leaning think-tank.

It recommends that businesses take a more active role in supporting their employees to lead healthier lifestyles, including through the provision of subsidised nutritious food. Moreover, it suggests that the Health and Safety Executive (HSE) be empowered to hold employers accountable if they have “unacceptable” levels of workforce attrition owing to employee ill-health. 

Chris Thomas, head of the IPPR’s Commission on Health and Prosperity, says these changes could help to reduce rising levels of obesity, anxiety and depression in the workforce. “If, after medical intervention, we send people back to the environment that made them sick in the first place, then we’re not doing the most effective thing,” he told The Guardian

However, critics argue it should be the responsibility of employees to look after their own health and that the introduction of new regulations could place an unfair burden on businesses.

Here, two experts debate the pros and cons of the IPPR’s suggestion.

Healthier staff make for a more productive workforce

Cary Cooper 
Professor of organisational psychology and health, Manchester Business School 

I am in favour of incentivising organisations to create healthy workplaces. Employers have a duty of care for the health and wellbeing of their employees and the government already has powers to take action against businesses that create unhealthy workplaces. The HSE has issued improvement orders to companies in the past and, if they don’t comply, they’ll face action. 

There are 2.8 million people in the UK who are out of the workplace with long-term sickness and 53% of them are off with stress, anxiety and depression. These are the leading causes of long-term sickness absence, not only in the UK, but in every developed country. The government has to be concerned about the size of the problem.

The more we improve training for managers and promote healthy workplaces by, for instance, allowing people to disconnect and ensuring they don’t consistently work long hours, the more we’ll reduce the number of people getting ill.

Nutrition, however, is a difficult area. I would like to see organisations offer wholesome, nutritious food that doesn’t make their staff obese. But, can you force an organisation to create a healthy-food environment through their on-site offering? 

Nutrition is a personal issue and individuals should look after themselves through their diet and work/life balance. But working hours, in contrast, are determined solely by the organisation. Therefore the state does have to play a role.

We could do what the IPPR is suggesting and impose fines on companies, but I think using positive incentives would be better. For example, the government could reduce national insurance contributions for employers that support a healthy work environment, or encourage health insurers to offer them lower premiums. This makes it a bottom-line issue for businesses.

Business leaders should remember that looking after employee health and wellbeing will improve productivity in the long run.

Education, not fines, will lead to healthier workplaces

Tracey Paxton 
Clinical director, Perkbox Vivup 

Having worked in the health sector for the past 36 years, I’ve been involved in plenty of workplace-health initiatives aimed at improving employee wellbeing. 

Employers shouldn’t be fined for unhealthy workplaces. It’s essential to consider the broader context and potential unintended consequences of imposing such fines – not least that its risks turning wellbeing into a tick-box exercise. While it is crucial to ensure employers prioritise health and safety, focusing on workplace education and awareness, rather than fines, is a more proactive and preventative approach. This promotes better overall health and alleviates the burden on the NHS.

High levels of stress, poor mental-health support and inadequate physical environments are often the result of systemic factors, such as heavy workloads, tight deadlines or insufficient staffing. Fining employers doesn’t tackle the underlying problems and may even create additional stress, especially for businesses that are already struggling. 

Providing employers with resources, training and assistance, such as collaborative initiatives or partnerships with health professionals, would be a more effective way to improve workplace health in the long term.

Expanding the role of the HSE or other regulatory bodies to improve workplace health and wellbeing through proactive, supportive measures would be an effective approach. By shifting the focus to prevention, education and collaboration, the HSE could foster healthier work environments while helping businesses to meet their responsibilities more effectively.

One of the most impactful ways to improve workplace wellbeing is through comprehensive awareness campaigns. Many businesses, particularly small and medium-sized enterprises, may not be fully aware of the importance of workplace health or the specific steps needed to maintain it. 

Supportive audits could be provided to help businesses to understand their current practices and identify areas for improvement. These would involve health and safety professionals visiting workplaces to conduct assessments and provide recommendations. 

Regulatory bodies could also advocate for the development and implementation of workplace mental health and wellbeing programmes. This could include offering guidance on how to establish employee assistance programmes (EAPs), stress-management workshops and policies for addressing mental health. 

Workplace health and wellbeing can be improved without relying on fines by focusing on education, guidance, incentives and partnerships with healthcare providers and regulatory bodies. This fosters a cooperative relationship and ensures sustainable, long-term improvements in employee health and productivity.