Mental health and wellbeing policy template

Use

This Mental Health and Wellbeing Policy helps organisations create a positive working environment where employees feel supported, respected, and able to perform at their best.

The policy outlines responsibilities for managers and employees, explains available support mechanisms, and promotes awareness, early intervention, and open communication regarding mental health concerns.

It also supports legal compliance, encourages psychological safety, and provides a framework for improving wellbeing, engagement, retention, productivity, and organisational culture.

• Issue the Mental health and wellbeing policy template during onboarding / after changes / planned refresher.

• Send it to appropriate internal recipients such as employees, workers, contractors etc. and request confirmation that is has been read and understood.

Timing

Follow these best practice actions to get the most from the Mental health and wellbeing policy template, guiding you before, during, and after implementation:

Step-by-step action table for supporting mental health and wellbeing

Example

At Northstar Engineering Ltd, employee engagement surveys identified increasing levels of stress among supervisors and production staff following a period of rapid growth. Sickness absence linked to stress and anxiety had increased from 1.8% to 3.9% over an 18-month period, while employee turnover had risen to 22%.

In response, the company introduced a Mental Health and Wellbeing Policy supported by management training, wellbeing check-ins, an Employee Assistance Programme, mental health first aiders, and quarterly psychological safety surveys.

Managers received specific training on recognising signs of stress, conducting wellbeing conversations, and identifying workload concerns before they escalated. The company also introduced regular employee forums, allowing staff to raise concerns about workloads, staffing levels, communication, and workplace pressures.

Over the following 12 months, stress-related absence reduced by 31%, employee turnover fell to 15%, and employee engagement scores increased by 18%. Employees reported feeling more comfortable discussing wellbeing concerns and managers identified issues earlier, allowing support and adjustments to be implemented before employees reached crisis point.

The organisation also experienced operational benefits, including improved productivity, lower recruitment costs, reduced overtime expenditure, and improved customer service levels due to greater workforce stability and engagement.