Employers should treat the prevention of work-related stress as a serious business issue, two senior lawyers said yesterday. They warned that the cost of settlements and awards taken by workers who become ill due to stress could exceed payments for physical injuries if the litigation pattern developed as expected.

The incidence of stress was rising at all levels of employment, warned Mr Gary Byrne, a partner at Dublin firm BCM Hanby Wallace, and Mr Ian Walker, a partner with London company Russell Jones & Walker. This meant employers could be exposed to legal action taken by workers "permanently and irreparably damaged" by stress-related illnesses, Mr Walker said.

Recent case law in Britain suggested that such workers would secure large awards for damages in the most serious cases. Trade unions in Britain took 783 cases against employers for stress-related illnesses last year, 70 per cent more than in 1998.

Suggesting that employers should take a balanced approach to stress prevention programmes, Mr Walker added: "Nobody disputes that you put a guard on a machine to stop someone putting their hand in and getting it cut off - it's the same principle."

Stress was caused by employing the wrong people in particular positions and by rising competitive pressures in the market place. "You've got to get your recruitment policies right."

A crucial factor in combating the problem was to foster a culture that let people address problems at work without fear of retribution.

Mr Byrne said employers should monitor absenteeism and amend their health and safety policies to include stress management procedures. The provision of modern facilities and equipment, and grievance procedures was also important.