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Friday, June 27, 2025

When is burnout compensable? What HR needs to know about mental health claims and workload stress - Canadian HR Reporter

BC decision outlines what makes a work-related mental health claim compensable, and what doesn't

A recent decision by the BC Workers' Compensation Appeal Tribunal (WCAT) offers a detailed look at when work-related stress and burnout rises to the level of a compensable mental disorder – and when it doesn't.

In A2202387 (Re), 2025 CanLII 9894 (BC WCAT), a medical laboratory assistant claimed that chronic understaffing and workload pressure led to a panic attack at work.

Although the WCAT acknowledged the worker faced stress and high workloads, it denied the claim due to the absence of a formal DSM diagnosis, and concluded her workload did not exceed typical industry job demands in intensity or duration.

Mental health claims require more than burnout

To be compensable under section 135 of BC's Workers Compensation Act, a mental disorder must be diagnosed by a psychiatrist or psychologist, and be either a reaction to a traumatic event or predominantly caused by significant work-related stressors.

In this case, the worker had not received a DSM-based diagnosis from a qualified professional. This procedural hurdle is a critical threshold in mental health claims, explains Bonnie-Louise Lussier, lawyer with KSW Lawyers in Vancouver.

However, Lussier adds that that doesn’t mean employers get a free pass if there’s no diagnosis.

“From a practical standpoint, for employers, I think any employee that's coming to you and speaking about mental distress and burnout needs to be taken...



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