Supporting employees with mental illness is both a legal obligation and a strategic imperative for organisations committed to fostering safe, inclusive, high-performing workplaces. Under the Disability Discrimination Act 1992 (Cth) (DDA), employers must make reasonable adjustments for workers who experience mental illness, ensuring they have equal access to employment opportunities, can perform their role effectively, and are not subjected to direct or indirect discrimination. For HR and legal teams, navigating this landscape requires a clear understanding of the law, a sensitive approach to employee wellbeing, and the ability to balance organisational needs with individual rights.
Understanding the Legal Framework Under the DDA
The DDA defines disability broadly, including a range of mental illnesses such as depression, anxiety disorders, PTSD, bipolar disorder, and chronic stress-related conditions. Employers are prohibited from treating an employee unfavourably because of their condition and must provide reasonable adjustments unless doing so would cause unjustifiable hardship.
Reasonable adjustments may include modifications to work hours, workload, supervision practices, communication styles, or physical environments. Importantly, failure to make such adjustments—even unintentionally—may breach both anti-discrimination and workplace health and safety laws.
HR and legal practitioners must therefore understand not only what the law requires but how to operationalise those requirements within real organisational contexts.
Step 1: Identifying the Need for Reasonable Adjustments
The process begins when an employer becomes aware that an employee may be experiencing mental illness. Awareness may arise through:
- a direct disclosure
- observable performance or behavioural changes
- a medical certificate or return-to-work plan
- reports from managers concerned about wellbeing
Employers should avoid making assumptions about an employee’s condition. Instead, they should initiate a supportive, confidential conversation focused on functional impact—not diagnosis. Framing questions around “What do you need to perform your role effectively?” reduces stigma and respects privacy.
Step 2: Ensuring Confidentiality and Psychological Safety
Maintaining confidentiality is both a legal requirement and a trust-building measure. Information relating to mental illness should be:
- collected only when reasonably necessary
- stored securely and separately from general personnel files
- shared strictly on a need-to-know basis
HR teams must coach managers on how to navigate mental health information sensitively and appropriately. A breach of confidentiality can expose the organisation to discrimination claims and undermine employee confidence.
Step 3: Gathering Functional Information and Medical Guidance
Determining appropriate adjustments requires understanding how mental illness affects an employee’s capacity to complete core duties. Employers may request medical information only to the extent necessary to assess fitness for work and identify suitable accommodations. Useful information includes:
- functional limitations
- triggers that exacerbate symptoms
- recommended adjustments
- foreseeable prognosis
- capacity to perform inherent requirements
It is critical to distinguish between inherent requirements (essential job duties) and performance standards. Mental illness may affect how a task is carried out—but this does not invalidate the employee’s ability to perform core duties with adjustments.
If information is unclear, further clarification may be sought from:
- treating practitioners
- occupational physicians
- independent medical examiners (if justified)
Employers must, however, avoid fishing expeditions or unnecessary medical scrutiny.
Step 4: Designing and Implementing Effective Adjustments
Adjustments should be tailored, collaborative, and outcome-focused. Common examples include:
- flexible working hours or hybrid arrangements
- temporary or permanent workload redistribution
- quiet workspaces or reduced environmental stimuli
- modified communication practices
- access to Employee Assistance Programs
- gradual return-to-work processes after illness episodes
Adjustments need not be expensive to be effective. The key is aligning them closely with the employee’s needs and functional capacity.
Once agreed, adjustments should be documented clearly, including:
- the nature of the adjustment
- duration and review points
- responsibilities of both employer and employee
This documentation protects both parties and promotes accountability.
Step 5: Managing Fitness-for-Work and Safety Considerations
There are situations where mental illness may raise questions about fitness for work or safety, particularly in high-risk roles. Employers must balance duty of care with legal obligations to avoid discrimination.
Best-practice strategies include:
- conducting risk assessments that focus on tasks, not the diagnosis
- using structured medical questions linked to inherent requirements
- ensuring any independent medical examination is reasonable and limited in scope
- considering temporary redeployment where feasible
Decisions relating to capacity must be evidence-based. Relying on assumptions or stereotypes about mental illness may constitute unlawful discrimination.
Step 6: Monitoring, Reviewing, and Adjusting Over Time
Mental health needs can change significantly over time. Regularly scheduled reviews allow HR, managers, and employees to assess whether adjustments remain effective. Reviews should:
- be collaborative
- focus on practical outcomes
- avoid unnecessary medical probing unless circumstances change
- identify opportunities to support wellbeing and productivity
Continuous improvement strengthens workplace culture and reduces risk.
Building Capability Through Ongoing Learning
Mental health management intersects with discrimination law, safety law, privacy law, and employment obligations—making it a dynamic and increasingly complex legal space. HR and legal teams benefit enormously from attending training events such as an Employment Law Conference or other professional development programs that deepen their understanding of mental health compliance and best-practice workplace management.
Managing reasonable adjustments for mental illness requires sensitivity, structure, and strong legal and procedural literacy. By identifying needs early, safeguarding confidentiality, gathering functional information responsibly, implementing tailored adjustments, and maintaining ongoing reviews, employers can meet their obligations under the DDA while supporting a healthier, more resilient workforce. A proactive, informed approach not only reduces legal risk but reinforces an organisational culture where employees feel valued, supported, and able to perform at their best.
