Employee misconduct is always a delicate issue—but when it intersects with mental health, the stakes rise dramatically.
Employers walk a fine line: protecting their people, upholding workplace standards, and managing risk, all while navigating legal and ethical obligations.
Do it wrong, and the consequences can be cultural, legal, and reputational.
Do it right, and you strengthen trust, resilience, and performance.
We’re seeing it more than ever. A recent Australian Human Rights Commission report revealed that 39% of managers feel ill-equipped to support employees with mental health concerns, especially when conduct issues arise. At the same time, one in five Australians experiences a mental health condition each year.
These aren’t fringe issues—they’re central to workplace wellbeing and performance.
So, what happens when an employee exhibits misconduct, and mental health is part of the picture? Many leaders freeze. Fear of “getting it wrong” leads to inaction, or worse, avoidance. But sidestepping these issues only compounds the problem, erodes morale, and leaves both parties vulnerable.
Instead, leaders need to step in—not back. Here’s how:
🔑 Leadership Tip #1: Lead with Empathy, Act with Clarity
Begin with compassion—but don’t abandon clarity. Employees experiencing mental health challenges deserve dignity and support, but this doesn’t mean misconduct goes unaddressed.
A fair process starts with listening. Avoid assumptions. Focus on facts and behaviours, not diagnoses. Separate the person from the performance. Show empathy, but maintain the standards expected of the role.
Use support frameworks like EAPs, mental health first aid, or external mediation when appropriate. This balanced approach builds trust while preserving accountability.
🔑 Leadership Tip #2: Have a Framework—Not Just Feelings
Too many organisations manage mental health reactively. You need policies that empower leaders to act consistently and legally. That means having clear performance and behavioural expectations, processes for reasonable adjustments, and access to HR or external advice when mental health complicates conduct issues.
Train your leaders. Equip them with scripts, scenarios, and coaching. Mental health conversations shouldn’t rely on instinct—they should be supported by frameworks that align care with consequence.
Navigating employee misconduct tied to mental health isn’t just about compliance—it’s about culture. When leaders act with clarity, consistency, and compassion, they don’t just protect their people—they powerfully reinforce the values that define the organisation.
Want to shift from fear to confident leadership in these situations? It starts with the right tools, mindset, and support.
