Mental health is just as important as physical health, yet many employees feel uncomfortable taking time off for mental health reasons. A clear mental health leave policy signals that your organisation genuinely supports wellbeing, reduces stigma, and encourages employees to seek help before burnout or crisis. This template provides a compassionate, practical mental health leave policy for small businesses.
Key Takeaways
- Mental health leave is not a separate legal entitlement in most jurisdictions, but it can be taken under existing sick leave or personal leave provisions.
- Creating a dedicated mental health leave policy reduces stigma and encourages employees to prioritise their wellbeing.
- Confidentiality is essential — employees must trust that their mental health information will be handled with care.
- Proactive mental health support (EAP, flexible working, manager training) is more effective than reactive leave alone.
What This Template Covers
This template provides a complete mental health leave policy for small businesses. It covers the purpose and philosophy of mental health leave, how it relates to existing leave entitlements, notification and evidence requirements, confidentiality, support resources, and manager guidance. It is designed for businesses of all sizes and can be adapted to reflect your local leave laws.
Mental Health Leave Policy Template
1. Purpose
[Company Name] believes that mental health is a fundamental aspect of employee wellbeing and performance. This policy establishes a supportive framework for employees who need time away from work to address their mental health, reduce stress, or prevent burnout. We recognise that taking time off for mental health is just as valid as taking time off for physical health.
2. Scope
This policy applies to all employees of [Company Name], regardless of employment status, length of service, or role. Mental health leave is available to full-time, part-time, and casual employees (subject to applicable leave entitlements).
3. What is Mental Health Leave?
Mental health leave is time away from work taken to:
- Address a diagnosed or undiagnosed mental health condition (e.g., depression, anxiety, PTSD, burnout)
- Prevent a worsening of mental health symptoms
- Attend therapy, counselling, or psychiatric appointments
- Take a mental health day for rest and recovery
- Manage a mental health crisis
Mental health leave may be taken under existing leave entitlements, including:
- Sick leave / personal leave (for diagnosed mental health conditions)
- Annual leave / PTO (for planned mental health breaks)
- Compassionate leave (where the employee is supporting someone else’s mental health crisis)
- [X] dedicated mental health days (company-provided, in addition to other leave)
4. Dedicated Mental Health Days
[Company Name] provides [2–5] dedicated mental health days per year, in addition to other leave entitlements.
- Mental health days may be taken at the employee’s discretion, without the need for a medical certificate or specific justification.
- Mental health days do not carry over to the next year.
- Mental health days are paid at the employee’s normal rate of pay.
5. Notification
- Employees should notify their manager as soon as practicable when taking mental health leave.
- For planned leave (e.g., scheduled therapy appointments), employees should give at least [1–2 days] notice.
- For unplanned leave (e.g., a mental health crisis or sudden need for rest), employees may notify their manager on the day of absence.
- Employees are not required to disclose the specific nature of their mental health condition. A general indication (e.g., “I need a mental health day”) is sufficient.
6. Evidence Requirements
- For dedicated mental health days: No evidence or medical certificate is required.
- For extended absence (e.g., more than 3 consecutive days): A medical certificate or fit note from a GP or mental health professional may be requested, in line with the company’s standard sick leave policy.
- Evidence requirements must be reasonable and proportionate. Requiring excessive documentation for mental health leave may deter employees from seeking support.
7. Confidentiality
All information related to an employee’s mental health is treated as strictly confidential:
- Information is disclosed only to directly involved personnel (e.g., HR, the employee’s manager) on a need-to-know basis.
- Mental health information is not recorded in personnel files beyond what is necessary for leave administration.
- Information is not disclosed to other employees, clients, or external parties without the employee’s explicit consent.
- Employees may discuss their situation with HR or an EAP provider confidentially.
8. Return to Work
Following a period of mental health leave, [Company Name] will:
- Conduct a supportive return-to-work conversation with the employee’s manager and HR.
- Consider flexible working arrangements or a phased return to ease the transition.
- Refer the employee to the Employee Assistance Programme (EAP) where available.
- Make any reasonable adjustments identified by the employee or their healthcare provider.
9. Support Resources
[Company Name] encourages employees to access the following support resources:
- Employee Assistance Programme (EAP): [EAP Contact Details / Phone Number]
- Lifeline (Australia): 13 11 14
- Samaritans (UK): 116 123
- National Suicide Prevention Lifeline (US): 988
- Beyond Blue (Australia): 1300 22 4636
- Mind (UK): 0300 123 3393
- HR Contact: [Name/Email]
10. Manager Guidance
Managers play a critical role in supporting employee mental health. [Company Name] provides the following guidance:
- Recognise the signs. Changes in behaviour, performance, or attendance may indicate mental health challenges.
- Respond with empathy. Approach conversations with care and without judgement.
- Respect confidentiality. Do not disclose an employee’s mental health information to others.
- Encourage leave usage. Proactively encourage employees to take time off when needed.
- Seek support. If you are unsure how to handle a situation, contact HR or the EAP for guidance.
Legal Requirements Summary
| Requirement | Detail |
|---|---|
| Statutory entitlement | Mental health leave may be taken under sick/personal leave |
| Dedicated mental health days | Company-provided (e.g., 2–5 days per year) |
| Medical evidence | Not required for dedicated days; may be requested for extended absence |
| Confidentiality | Strict; need-to-know basis |
| Disability discrimination | Mental health conditions may qualify as disabilities under equality law |
| Reasonable adjustments | May be required under disability discrimination legislation |
Customisation Tips
- Integrate with existing leave. Mental health leave is most effective when embedded in your broader leave and wellbeing strategy.
- Offer proactive support. Beyond leave, invest in manager training, mental health first aiders, and a culture that normalises mental health conversations.
- Address remote workers. Remote employees may face unique mental health challenges (isolation, blurred boundaries). Include specific support provisions for distributed teams.
- Partner with mental health organisations. Collaborating with charities or mental health organisations adds credibility and expertise to your programme.
Common Mistakes to Avoid
- Stigmatising mental health leave. Language matters. Frame mental health leave as a positive, proactive step, not a sign of weakness.
- Requiring excessive evidence. Overly strict documentation requirements deter employees from taking leave and can worsen mental health.
- Ignoring the return-to-work process. A poor return-to-work experience can undo the benefits of the leave. Invest in supportive conversations and adjustments.
- Not training managers. Managers are the first point of contact. Without training, they may respond inappropriately or breach confidentiality.
- Treating mental health leave differently from physical health leave. Both are equally valid. Apply the same standards and expectations.
Frequently Asked Questions
Do we have to offer dedicated mental health days?
No. There is no legal requirement to provide dedicated mental health days. However, offering them is a best practice that signals genuine support for employee wellbeing and can improve retention and engagement.
Can an employee take mental health leave without a medical certificate?
Yes. For dedicated mental health days, no medical certificate is required. For extended absences, you may request reasonable evidence (e.g., a fit note), but this should be proportionate and not overly burdensome.
How do we handle an employee who frequently takes mental health leave?
If an employee is frequently taking mental health leave, this may indicate an underlying condition that requires support. Rather than treating it as a performance issue, consider:
- A supportive conversation to understand the employee’s needs
- Referral to the EAP or a mental health professional
- Reasonable adjustments to the employee’s work environment
- A fitness-for-duty assessment (with caution and sensitivity)
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