When exhaustion becomes exposure: legal consequences of burnout
Financial services firms operate at breakneck speed. Fast decisions, long hours and constant availability have become markers of success. Yet as Employment Partner Emma Gross and Leadership Consultant Monta Sir Benali explain in their joint article for Grip. by Global Relay, this “always on” culture now manifest into legal consequences and performance risks.
Their analysis highlights a growing misconception: that high speed equals high value. The reality is that sustained overwork erodes judgement, creativity and ethical awareness, while fatigue drives poor decisions and compliance failures. The result is a systemic problem with measurable legal exposure.
From a legal perspective, Emma Gross identifies five key areas of fallout:
- Personal injury and stress claims
- Constructive dismissal
- Disability discrimination
- Harassment and bullying
- Whistleblowing and victimisation.
Recent tribunal cases, including DB v Financial Services Compensation Scheme Ltd and Others (2025), show that courts are now examining workplace culture and leadership behaviour as part of their rulings.
Emma stresses that burnout has shifted from an HR topic to a compliance and governance issue. Under the Financial Conduct Authority’s extended non-financial misconduct rules, leadership behaviour, psychological safety and culture now sit squarely within regulatory scrutiny.
“As an employment solicitor advising clients in the financial services sector, I am increasingly seeing that the culture once regarded as a mark of commitment – long hours, round-the-clock availability and relentless pace – is now becoming a legal liability. What used to be seen as a private wellbeing matter has become an issue of risk, compliance and governance,” Emma said.
Emma and Monta highlight that the solution lies in prevention. Firms must embed wellbeing into compliance frameworks, including manager training, clear reporting routes for workload concerns, and regular psychological safety audits. These steps protect both people and performance.
The article posits the future of performance in finance depends not on pushing employees harder, but on enabling them to work smarter. The pace of work is now a legal as well as a human concern.
Read the full article by Emma Gross and Monta Sir Benali on Grip. by Global Relay here.
