Workplace Injury Compensation: The Hidden Toll on Mental Health

A 2024 systematic review, Workplace Injury Compensation and Mental Health and Self-Harm Outcomes, examined research from multiple countries to understand whether involvement in workers’ compensation systems affects mental health. The authors sifted through nearly 5,000 studies and found nine that met strict inclusion criteria — seven on general mental health outcomes, and two on self-harm or suicidality.

Across these studies, a clear pattern emerged: people navigating the compensation process were more likely to experience depression, anxiety, psychological distress, and, in some cases, self-harm or suicidal ideation. Importantly, these findings persisted even after accounting for the physical injury itself.

The review identified several system-related stressors that can worsen mental health:

• Perceived injustice — feeling the process is biased or unfair.

• Complexity and delays — prolonged claims, confusing paperwork, and bureaucratic hurdles.

• Litigation stress — adversarial interactions with insurers, employers, or lawyers.

• Stigma — being treated with suspicion or as if symptoms are exaggerated.

While the authors caution that the studies are diverse and can’t prove direct causation, the message is clear: the process itself can become a “second injury.” Improving fairness, transparency, and support within claims systems may not just speed recovery — it could save lives.

Sometimes, recovery isn’t only about the broken bone or the torn ligament; it’s about repairing the systems meant to help.