The Mental Health Crisis And Its Reflections On The Labor Market

Impacts And Challenges For Companies With The New Regulatory Standard 01 (“NR-1”)

Writting by Camila de Moraes Machado

Brazil has experienced a significant increase in the number of work absences due to mental disorders such as anxiety and depression in 2024. The figures are revealing: compared to the previous year, the increase in absences was 68%. With more than 470,000 medical leaves granted in 2024, this reality reflects a mental health crisis within the corporate environment, raising concerns about employee well-being in the workplace. Burnout (which has been recognized as an occupational disease by the World Health Organization (WHO) since January 2022), anxiety, and depression have become increasingly common in professional settings.

Therefore, investing in the mental health of employees is not only a legal obligation but also a corporate decision that can serve as a competitive advantage in the current market. Companies that recognize the importance of their employees’ psychological well-being build not only a more structured and resilient workforce but also a solid and innovative organizational culture. In a scenario where stress and pressure are often underestimated, adopting preventive practices and ensuring necessary emotional support is an effective way to avoid talent loss and decreased productivity. Therefore, psychological well-being should be viewed as a valuable asset that can enhance institutional performance, reduce absenteeism rates, and ultimately strengthen the company’s reputation in the market and society.

Labor legislation

From a legal perspective, the company’s responsibility regarding the mental health of its employees is very clear. Labor legislation establishes that employers have the duty to ensure the physical and psychological integrity of their employees (Articles 157, 158, and 200 of the Brazilian Consolidation of Labor Laws – CLT). Thus, ensuring a healthy workplace is not only a recommended practice but a legal requirement aimed at protecting employees’ rights and, in turn, preventing new labor claims against the company.

Regulatory standard no. 1 (NR-1)

With the recent update to Regulatory Standard No. 1 (NR-1) from the Brazilian Ministry of Labor and Employment, which will come into effect on May 26, 2026, companies will face a more stringent scenario in terms of inspection and compliance with rules related to mental health in the workplace. Audits will start from May 26, 2026.

NR-1 establishes that companies must “identify, assess, and control psychosocial risks, including work-related stress, organizational violence, and other factors that may harm the mental health of workers” (item 1.7.1 of NR-1).

An important tool for adapting to the new NR-1 guidelines is the development of a comprehensive Risk Management Program (Brazilian acronym – PGR), which, in addition to risks arising from physical, chemical, biological agents, accidents, and ergonomic factors, must also address psychosocial risks related to work. The effective and correct implementation of the PGR is a significant differentiator.

Non-compliance with NR-1

Failure to comply with NR-1 may result in several sanctions for companies, which will be applied based on the severity of the violation and its impact on employee safety and health. The main sanctions are:

1. Administrative Fines

The Brazilian Ministry of Labor and Employment, through the Regional Superintendence of Labor and Employment (SRTE), may impose fines on companies that fail to comply with the requirements of NR-1. The fine amount will vary according to the severity of the violation and may be classified as light, medium, severe, or very severe (Article 223 of the CLT). The fine amount can reach up to R$7,000.00 and may double in case of recurrence.

2. Civil and Labor

Liability Breach of obligations related to workplace safety and health may lead to labor lawsuits filed by employees who feel harmed, potentially resulting in compensation for moral and/or material damages, depending on what is claimed in the lawsuit, especially in cases of occupational diseases (including mental disorders) that are proven to have been triggered by work activities.

3. Criminal Liability

Although NR-1 itself does not foresee the application of criminal sanctions, depending on the specific situation, the company may be criminally liable if non-compliance with safety and health regulations leads to serious workplace accidents or occupational diseases that qualify as a criminal offense.

4. Labor Claims

Disregard for workplace health and safety guidelines, including the management of psychosocial risks, may also lead to individual labor claims filed by an employee or collective actions initiated by the Labor Public Prosecutor, which may result in compensation for moral and/or material damages (in the first case) or compensation for collective moral damages (in the second case).

Conclusion

Managing the mental health crisis in the corporate environment is an increasing challenge. Statistics call for collaborative actions aimed at preserving employees’ integrity while ensuring the maintenance of productive activity, which is severely harmed in the long term by frequent employee absences due to illness.

Therefore, it is essential that business owners carefully observe the legal obligations brought by the new Regulatory Standard (NR-1) and adopt practices that foster a safe and healthy work environment, thus protecting both their employees and the company, as well as its management, from potential litigation and losses. To this end, among other measures, it is of the utmost
importance to maintain an effective PGR and up-to-date occupational health documentation.

Article published by the Câmara Brasil-Alemanha de São Paulo | AHK Brasil (Brazil-Germany Chamber of Commerce in São Paulo), in “Recht & Steuern in Brasilien 2025 – 2nd edition.