Inside the Toxic Workplace: How Psychological Injuries Happen and How to Address Them

When we talk about workplace safety, most people picture hard hats and harnesses… not hostile emails, snide comments or relentless micromanagement. But psychological harm is just as real as physical injury and it’s often much harder to see. Harassment, bullying and verbal or emotional violence can leave lasting marks on a person’s well-being, confidence and sense of belonging. If we want truly healthy workplaces, psychological safety must be part of the conversation.

What We’re Really Talking About: Definitions That Matter

Let’s be clear on the language we’re using, because these aren’t just buzzwords. They represent real, harmful experiences that can erode trust and well-being.

Harassment: any unwanted, offensive or harmful behaviour (verbal, physical or emotional) that creates a hostile or intimidating work environment.

Examples:

• A co-worker repeatedly making inappropriate jokes of a sexual nature, even after being asked to stop.

• A manager targeting an employee for their religious beliefs by making comments about their faith during meetings.

Bullying: repeated and targeted actions that humiliate, isolate or belittle a person. It often involves a power imbalance and can be both overt and subtle.

Examples:

• A team leader regularly excluding a specific employee from important meetings or group emails without explanation.

• A colleague undermining someone’s work in front of others and taking credit for their ideas.

Workplace Violence (Mental/Verbal): includes verbal threats, psychological manipulation, intimidation or emotional abuse. While it may not involve physical contact, it can cause deep psychological harm.

Examples:

• A supervisor yelling at employees in front of others, using fear to control performance.

• A co-worker threatening to “make someone’s life miserable” if they report misconduct.

Psychological Injury: emotional or mental harm that results from exposure to harmful behaviours at work. This injury may develop suddenly or over time.

Examples:

• A formerly confident employee developing chronic anxiety due to months of public criticism by their boss.

• An employee experiencing panic attacks and sleep disruption after being harassed by a peer with no meaningful intervention from leadership.

Toxic Workplaces: Where Psychological Injury Grows

Not every stressful workplace is a toxic one. A toxic workplace is an environment where dysfunction is the norm and harmful behaviours are left unchecked. These environments don’t just hurt morale. Over time, they can erode mental health, create lasting psychological injuries and make even the most dedicated employees want to walk away.

Definition: A toxic workplace is one where ongoing behaviours, leadership styles or cultural norms create a psychologically unsafe environment. These workplaces are often marked by fear, blame, favouritism, poor communication, micromanagement or a lack of accountability.

Examples of toxic workplace behaviours:

• Leaders who ignore or excuse harassment and bullying

• Micromanagement and public criticism

• Favouritism in promotions or disciplinary action

• Gossip, exclusion or a culture of backstabbing

• Unrealistic expectations with no support or resources

• Fear-based motivation (e.g., threats of job loss or demotion)

Example: A highly skilled employee is repeatedly excluded from meetings, receives contradictory feedback and works in fear of being publicly criticized. Over time, they disengage, experience panic attacks and begin to dread going to work.

Early Warning Signs of Psychological Injury

Psychological injuries often build slowly, making it easy to miss the signs. Here's what to watch for in yourself and others.

Emotional and Psychological Signs:

• Anxiety or dread about going to work

• Loss of interest in previously meaningful tasks

• Emotional exhaustion or numbness

• Increased irritability or tearfulness

Cognitive Signs:

• Trouble focusing or making decisions

• Memory lapses or brain fog

• Difficulty processing feedback

Physical Signs:

• Trouble sleeping

• Headaches or tension

• Digestive issues

• Chronic fatigue

Behavioural Signs:

• Withdrawal from co-workers

• Missed deadlines or reduced productivity

• Increased reliance on unhealthy coping mechanisms (e.g., alcohol, food, isolation)

If you’re noticing these signs, don’t ignore them. They may be signals of something deeper, and the earlier they’re addressed, the better the chance of recovery.

Psychological Injury and Workers' Compensation

Traditionally, most Workers’ Compensation Boards in Canada only accepted claims for psychological injuries that were tied to a specific traumatic event (like witnessing a fatality). But this is starting to change.

In my home province of New Brunswick, WorkSafeNB now recognizes gradual onset psychological injuries for compensation claims.

That means if an employee’s mental health has been damaged by persistent bullying, harassment, a toxic work environment or chronic stressors, they may be eligible for support even in the absence of a single traumatic incident.

Other provinces that have made similar progress include:

• British Columbia (WorkSafeBC)

• Alberta (WCB-Alberta)

• Nova Scotia (WCB Nova Scotia)

• Ontario (WSIB)

• Manitoba (WCB Manitoba)

• Saskatchewan (WorkSafe Saskatchewan)

Check with your province or territory’s Workers’ Compensation Board for specifics. Legislation varies, and the parameters and process for filing a psychological injury claim is different depending on where you live.

It’s Time to Treat Psychological Safety Like the Priority It Is

Harassment, bullying and toxic workplace culture aren’t just interpersonal problems, they’re health and safety risks. And the psychological injuries they cause can be just as real and lasting as a physical wound.

We owe it to our teams (and ourselves!) to recognize the early signs of harm, intervene with empathy and accountability and create systems that support psychological safety. That means prevention, yes. But it also means having the courage to name the harm when it happens and ensuring that people who’ve been affected aren’t left to suffer in silence.

The good news? We’re starting to see meaningful change. With WorkSafeNB and other provincial boards acknowledging gradual onset psychological injuries, we’re finally moving toward a world where mental health is treated with the seriousness it deserves.

Because a healthy workplace isn’t just one without injuries; it’s one where people are respected, supported and able to thrive.

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Elizabeth Eldridge is a Psychological Health & Safety Consultant based in southern New Brunswick, Canada. In addition to keynote speaking and corporate training on mental health in the workplace, she supports organizations across the country on the adoption of Canada's best practice guidelines on psychological health and safety management. She is the Founder & President of Arpeggio Health Services which provides standardized education programs like Mental Health First Aid, The Working Mind, QPR Suicide Prevention and more.

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