Employer responsible for employee’s aggravated psychological condition
A recent decision by the Personal Injury Commission confirms that employers may be liable for aggravating the pre-existing psychological injuries of employees.
The employee developed depression attributed to excessive workload and work-related stress in 2021. After returning to work in 2022 following a period of absence, his psychological condition deteriorated due to an increase in workload and stress. He then filed a claim for compensation for permanent impairment against his employers.
It was determined that the employee suffered an aggravation of his pre-existing psychological injury as a direct result of his employment. This aggravation was found to be primarily attributable to the stressors he experienced in that role.
84% of HR professionals think DEI is critical for success
Despite growing diversity in Australia’s workforce, new research reveals there is still some way to go.
Research from the Australian HR Institute shows that 84% of HR professionals say that diversity, equity and inclusion (DEI) is critical to the future success of their organisations. However, only half say their organisations’ leaders view DEI as a priority.
At the same time, 32% of workers from non-English-speaking backgrounds reported experiencing discrimination or harassment in the workplace, and 42% of people living with a disability reported similar experiences.
This disconnect is a timely reminder that the commitment to DEI must be genuine – not only to address discrimination, but also to strengthen innovation, performance and connection with employees.
FWC finds unfair dismissal harsh and unjust
The Fair Work Commission (FWC) recently dealt with an unfair dismissal case involving a teacher who was terminated after performance and conduct issues.
The teacher received a formal warning in October 2016 for failing to comply with reasonable directions. In December 2022, he received a second and final warning that included a requirement to participate in a performance improvement plan and mentoring program. After a formal notice of concerns and subsequent meetings, the principal provided the teacher with a show cause letter in August 2024. The teacher’s employment was then terminated in September 2024.
The FWC found that the teacher had failed to perform his duties properly, providing a valid reason for termination. However, it identified the following procedural issues that rendered the dismissal harsh and unjust:
- Confusion between ‘performance management’ and ‘conduct management’.
- Failure to provide feedback on the worker’s interim reflections.
- Lack of clarity about the discontinuation of the performance improvement plan.
The Commissioner also found that the teacher wasn’t given a proper opportunity to respond to the findings before a preliminary decision was made about termination.
This case is a timely reminder for all employers. Even where there is a valid reason for dismissal such as poor performance, dismissals must still be procedurally fair.
EEO Specialists works with organisations to enable safe and respectful workplaces. We offer a range of in-person workshops as well as online courses. If you would like to have a confidential discussion about workplace behaviour and compliance, please call Franca Sala Tenna on 0405 134 187 or email franca@equalopportunitytraining.com.au
Gender diversity in workplaces could boost profits
The Chief Executive of UN Women Australia believes that harnessing the benefits of DEI within Australian workplaces could boost company profits and improve conditions.
According to UN Women Australia, companies with higher proportions of female board members or executives are 27% more likely to financially outperform those with lower proportions. Companies with diverse executives are 21% more likely to experience above-average profitability.
This is a good indicator that DEI can not only even the playing field, but it may help employers to reap the most benefit from their businesses.
NSW plans to limit the type of workers compensation claims
The NSW government has released an exposure draft of the Workers Compensation Legislation Amendment Bill 2025 (Bill). It will limit the type of workers compensation claims that NSW-based workers will be able to bring in relation to psychological injuries suffered at work.
This Bill proposes to amend NSW workers compensation laws so that workers’ bullying or harassment claims must be heard by a court or tribunal and a finding that such conduct has occurred before they can make a compensation claim for psychological injury in that context.
A new Industrial Relations Amendment Bill – planned to accompany the Bill – will create a new bullying and harassment jurisdiction within the NSW Industrial Relations Commission.
This may lead to employers facing more formal disputes with workers relating to workplace conduct. Employers should:
- Remain vigilant in preventing workplace conditions that could lead to psychological injuries.
- Review and update workplace policies relating to workplace harassment, bullying behaviour and psychosocial hazards/risks.
- Enhance workplace safety and mental health initiatives, including regular training and safe work assessments.
Can workplace transfers resolve bullying complaints?
The FWC recently dealt with a case where a worker sought stop-bullying orders against their manager.
After filing his stop-bullying application, the Coles employee was transferred to another location. This meant he no longer worked at the same location as the alleged bully.
Under section 789FC of the Fair Work Act, there must be evidence of a risk that the worker will continue to be bullied by the same individual or group for a stop-bullying order to be granted.
The FWC concluded that the store transfer had effectively eliminated the possibility of future workplace interactions that could give rise to bullying. As a result, the application was dismissed.
Law Council of Australia provides guidance on sexual harassment
The Law Council of Australia has released an updated Framework for addressing sexual harassment for the Australian legal profession.
Although the Framework was released four years ago, recent changes in law related to workplace sexual harassment and new obligations imposed on employers warranted an update.
The Framework aims to promote national consistency and best practice across jurisdictions. Legal employers are encouraged to use the document as a foundation upon which to build their own policy, alongside any relevant local discrimination laws, work, health and safety legislation and other applicable regulatory regimes.
Adult retail chain under investigation over harassment of workers
Retailer Sexyland is under investigation over allegations of customers harassing workers.
One worker revealed that being harassed by customers at work is an almost nightly occurrence at the Adelaide store where she works. Another worker said she felt the company rarely took worker concerns seriously.
The retail workers’ union in SA describes Sexyland as “one of the most unethical” businesses it has come across.
In a report to SafeWork SA last month, the Shop Distributive and Allied Employees Association SA stated that Sexyland’s St Marys store had no reporting systems to track customer harassment, or any policies or training to support workers who experience inappropriate customer behaviour.
These concerns are now under investigation by SafeWork SA.
Employee charged with stalking and harassing female colleague
A Canberra Hospital employee has been charged with stalking and harassing a female colleague after using the hospital’s IT system to send death threats to her.
It is also alleged that he followed the woman while she was working, including areas of the hospital he had no reason to be in.
The court heard that the man’s employment at the hospital has now ceased. He has been refused bail in the ACT Magistrates Court and will return to court later this month.
Aggression and harassment at aquatic and recreation centres
Reports evidence a concerning increase in aggression and harassment towards staff at aquatic and recreation centres across Australia.
Belgravia Leisure reported 650 incidents involving harassment in 2024-25, compared to 2023-24 which saw a reported 589 incidents. Based on their reports, verbal harassment is the most common, consisting of 72% of harassment incidents in 2023-24, and 66% in 2024-25.
The company condemned harassment incidents and said they are committed to providing a safe working environment for all team members.
