Many countries today are making efforts through legal measures, security enhancements and health protection to improve living and working conditions and to neutralise especially growing risks of mental health impairment in the workplace. In this paper, we are focused on the problem of traumatic stress in the working environment, giving special attention to the legislation and problems of compensation of non-material damage in court. Based on practical experience and analysis of legal provisions in our country, the questions whether the traumatic stress reaction, which occurred at work can be treated as an injury in the workplace and whether the effects of chronic stress and psychological trauma in the workplace, can fit into the concept of “work-related illnesses“ are raised. According to recent findings about traumatic stress, there is a reasonable basis for the belief that extreme stress and psychological trauma in the workplace could be considered as non-material damage, which should be compensated in accordance with the basic regulations of the Law of Compensation.