Legal Risks in Workplace Bullying and Stress-Related Lawsuits: A Case Study

A recent court case involving an insurance company employee who sued for damages due to work-related stress and alleged workplace bullying sheds light on the complexities of workplace injury claims. 

A recent court case involving an insurance company employee who sued for damages due to work-related stress and alleged workplace bullying sheds light on the complexities of workplace injury claims. Despite having his condition recognized as a work-related injury by a government agency, the employee’s civil lawsuit for damages was dismissed. This case highlights the challenges faced by both employees and companies when it comes to managing workplace stress and the legal risks of workplace harassment claims.

In this case, an employee of a car insurance company claimed he was overwhelmed by excessive workloads and harassment from his team leader. After feeling pressured at work, he experienced significant mental stress, which he believed led to his diagnosis of depression. He took leave from his job on multiple occasions, and eventually filed for workers’ compensation. The Workers’ Compensation and Welfare Service recognized his condition as a work-related injury, citing workplace conflicts and sudden changes in workload as contributing factors.

Emboldened by the approval of his workers' compensation claim, the employee filed a civil lawsuit demanding 260 million KRW (approximately 200,000 USD) in damages from his employer and team leader. He alleged that workplace bullying, excessive workload, and verbal abuse caused his mental health issues. However, the court ruled against him, stating that the evidence presented did not sufficiently prove that his workload was excessive compared to other employees and that no verbal abuse occurred as claimed. The court found that the employee’s workload was only 80% of the average for his department, and other personal factors may have contributed to his condition.

This case underlines a growing trend where employees pursue civil lawsuits against their employers following recognition of workplace injuries by government agencies. While workers' compensation cases may succeed, civil lawsuits require a higher burden of proof, especially when alleging personal damages. Companies should be aware of the potential legal risks involved in workplace bullying or stress-related claims, as they could also be held liable under the legal doctrine of "employer responsibility" if they fail to address such issues.

The outcome of this case serves as a reminder to companies to remain vigilant in addressing workplace bullying and stress-related claims. Proactively managing employee grievances, conducting thorough investigations, and taking appropriate corrective measures are essential to minimizing legal risks. Employers must ensure a healthy work environment and promptly address any signs of harassment to protect both the employees’ well-being and the company from potential litigation.