What the Mental Health Bill 2025 Means for Employers

These mental health challenges cost UK employers an estimated £51 billion annually through absenteeism, presenteeism, and staff turnover.

Under the new legal framework, a person can only be detained if they’re at immediate risk of serious harm to themselves or others, and only if hospital treatment offers a therapeutic benefit. These tighter detention criteria mean more people will be supported in the community, often while still employed.

It also limits detention for autistic people and people with a learning disability, unless there’s a coexisting mental health condition. If someone is admitted to hospital, the default expectation is that they’ll leave hospital within 28 days. This gives employers a much shorter window to prepare for time off and reintegration.

“This isn’t just a health issue anymore, it’s a workplace issue,” says Russell Corlett, Head of Omny Safety. “Employers now have a clear role in helping people recover and stay in work. That means real support, not just policies on paper.”

The Act promotes choice, dignity and support. People who are detained have the right to create advance choice documents, appoint a nominated person, and access independent mental health advocates. Employers may need to work with these individuals when planning treatment, making adjustments, or managing time off.

The shift is clear. Mental health is now treated with the same weight as physical health under the Equality Act. If a mental health condition affects someone’s ability to work, employers must make reasonable changes, just as they would for a broken leg or other long-term illness.

For many people, recovery happens at work. And for employers, that means being part of the solution.

Here are the key changes employers need to be aware of:

1. Stricter Detention Rules and Shorter Absences

The new Mental Health Act updates the detention criteria. A person can only be detained if they are at immediate risk of serious harm, and if hospital treatment provides a clear therapeutic benefit that cannot be achieved through community services.

One major reform is the new 28-day limit for detaining those with a learning disability and autistic people, unless they also have a coexisting mental health disorder. After that, continued detention must be justified on clinical grounds and be subject to independent review.

 

“The 28-day rule is a major change,” says Russell Corlett. “Employers can’t afford to treat hospital leave as open-ended. You need a plan, and you need to put it in place before that person comes back.”

 

The plan should ideally be developed with the support of a competent person to ensure you’re meeting your health and safety obligations.

The shorter timeframe means managers must prepare return-to-work plans earlier, including possible temporary adjustments or check-ins with care teams.

2. Advance Choice Documents and the Nominated Person

People detained under the Act can now create advance choice documents, giving them a say in future care. These documents let them outline preferred treatment plans, communication preferences, and how they’d like to be supported when unwell. They also have the right to choose a nominated person to be involved in decisions about their care and support, replacing the older “nearest relative” model.

This gives people more control and means employers may need to review preferences and care needs before someone returns to work. Guidance on these rights is available in the official fact sheet from the Department of Health and Social Care.

As an employer, your role could include:

• Adapting duties or hours to respect stated preferences
• Communicating (with consent) with the nominated person
• Supporting the employee to follow agreed treatment plans

3. Community Treatment Orders and Ongoing Support

Under a CTO, a person continues receiving care in the community after leaving hospital. These orders often include medication, therapy, and regular reviews with a responsible clinician. Employees may return to work while under a CTO, so support needs to fit around their care.

Employers must make sure that:

• The employee has protected time for appointments or therapy and that working arrangements are reflected in up-to-date health and safety policies and procedures
• Their role doesn’t conflict with any treatment plan
• Confidentiality and boundaries are respected throughout

Practical guidance for employers is outlined in resources from Spill and Healthy Working Lives.

 

“This isn’t about stepping into clinical territory,” adds Russell. “But it is about creating a safe, flexible working environment that helps people stay well.”

Conditions like depression, anxiety, PTSD, or bipolar disorder often meet the legal test under the Equality Act, especially if they last 12 months or more and affect daily life. Adjustments should be individual, not one-size-fits-all. And they don’t need to be expensive or permanent. The goal is to reduce barriers to work and prevent harm.

Common examples of reasonable adjustments:

• Flexing start or finish times to reduce pressure
• Allowing time off for therapy or medical appointments
• Reducing workloads during recovery periods
• Offering hybrid work, quiet zones, or solo working options
• Providing regular check-ins or mentoring
• Making expectations clearer with written task lists or adjusted deadlines

These adjustments should also be reviewed as part of your formal risk assessments, and discussed with the employee, or in some cases, their nominated person or independent mental health advocate. This helps make support consistent and fair.

If you’re unsure where to start, the Acas guide to mental health adjustments offers practical examples for different job types and working patterns.

There’s also support available outside the business. The Access to Work scheme can help fund practical changes for employees with mental health conditions, including job coaching, equipment, or workspace adaptations.

Getting this right protects your people and your business. But more importantly, it helps create a working culture where people can speak up before they burn out.

The Mental Health Act 2025 sits within a wider shift in how mental health is managed at work. Employers are now expected to take more responsibility for mental health risks, not just through culture, but through clear, documented action.

The right to switch off

The proposed right to disconnect is designed to protect work-life boundaries. In 2025, more than a quarter of employees say they can’t fully switch off outside working hours. In the tech sector, 54 per cent of workers report working more evenings and weekends than before the pandemic.

This trend has direct implications for risk assessments. Out-of-hours pressure can affect sleep, stress levels, and burnout. Employers should consider how messaging expectations, meeting schedules, or overtime may be contributing to longer-term health risks.

Faster support through Access to Work

The government is expected to expand the Access to Work scheme to give faster support to people with mental health needs. That includes job coaching, therapy, or environmental changes such as noise-reducing equipment. Employers may be asked to coordinate adjustments, verify work needs, and put agreed-upon support in place.

The financial case is clear. For every pound spent on mental health support, employers see a return of around five pounds through lower absence, reduced turnover, and improved engagement.

More regulatory attention on mental health

Poor mental health now accounts for 12 per cent of all UK sick days, with stress, depression, and anxiety leading the figures. That puts it squarely within the remit of health and safety law. Employers have a duty to assess and manage mental health risks, just as they would with physical hazards.

With high demand, tight staffing, and long working hours, education, construction, and healthcare is already being watched more closely. In construction, for example, 45 per cent of workers take time off due to poor mental wellbeing, and some use annual leave to avoid the stigma of mental health absence.

The focus is shifting. Regulators are looking not just at crisis response, but at how employers design roles, manage pressure, and support people before problems escalate.

1. Update risk assessments to include mental health

Your legal duties include identifying risks in the workplace. These now clearly extend to mental health. Risk assessments should cover common causes of work-related stress, including excessive workloads, poor communication, and isolation. Use the HSE’s Management Standards as a guide and revisit them regularly (ideally as part of structured health and safety audits), especially when roles or working patterns change.

This is particularly important for employees recovering from a mental illness or living with a diagnosed mental health disorder. If someone has been detained under the Act, treatment plans may also need to be considered when planning their return to work.

2. Build a mental health policy that reflects the law

A mental health policy should do more than just express good intentions. It should make your legal obligations clear and explain how you’ll meet them. This includes supporting people with severe mental health difficulties or a mental disorder, outlining how reasonable adjustments will be made, and showing how decisions will be recorded and reviewed.

Your policy should also explain how you will coordinate with external support, including mental health services, approved mental health professionals, or local authorities where needed.

3. Train managers to act early and with care

Managers often see problems early on, but they need the right tools to respond. Practical training should help them recognise signs of distress, talk to people appropriately, and take action. This includes making adjustments, referring to support, or understanding when statutory care is involved.

In some cases, employees may be returning to work under a community treatment order, involved in a mental health tribunal, or supported by an independent mental health advocate. Managers don’t need expertise in these areas, but they should know how to respect processes and support people with dignity.

4. Monitor what works and keep improving

Support doesn’t stop once a plan is in place. You’ll need to track outcomes like absence rates, return-to-work success, and feedback from staff. This shows whether your approach is working and where more support is needed.

Even small changes can have a big impact. What matters is acting early, being consistent, and creating space for open conversations about mental health at work.

Whether you need help reviewing risk assessments, updating policies, or training line managers, we’ll work alongside you to build a safer, more supportive workplace.

Our specialists can guide you through what the Mental Health Bill 2025 means for your business and help you take action that’s fair, compliant, and tailored to your people.

Organisations looking to take a more structured approach to managing workplace mental health may also benefit from aligning with standards such as ISO 45001 which formalise health and safety processes, including mental wellbeing, into a certified management system.

Talk to us about:

• Embedding mental health into your H&S strategy
• Reviewing and updating your workplace risk assessments
• Training managers to support staff before issues escalate

Let’s build a workplace that works for everyone.