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What's New in Commonwealth Compensation - DibbsBarker

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There was no dispute that the Applicant suffered from a psychological condition which, on the<br />

medical evidence, the Tribunal found was best characterised as “depressive disorder” which was an<br />

ailment that was contributed to, to a significant degree, by his employment. Therefore the issue<br />

before the Tribunal was whether the ailment was suffered as a result of reasonable adm<strong>in</strong>istrative<br />

action taken <strong>in</strong> a reasonable manner <strong>in</strong> respect of the Applicant’s employment such as to exclude<br />

him from receiv<strong>in</strong>g compensation <strong>in</strong> accordance with s 5A(1) of the Safety, Rehabilitation and<br />

<strong>Compensation</strong> Act 1988 (Cth) (“1988 Act”) because it would not constitute an “<strong>in</strong>jury”.<br />

The Tribunal firstly found that each of the matters raised <strong>in</strong> the Applicant’s claim were actions by<br />

management which <strong>in</strong>volved staff, and that each constituted “adm<strong>in</strong>istrative action” for the purposes<br />

of the 1988 Act. The Applicant alleged that the adm<strong>in</strong>istrative action <strong>in</strong> relation to the three matters<br />

was unreasonable. On the factual evidence before it, the Tribunal found that the adm<strong>in</strong>istrative<br />

action <strong>in</strong>volv<strong>in</strong>g all three matters was reasonable and taken <strong>in</strong> a reasonable manner. Furthermore,<br />

the Tribunal was satisfied that that the adm<strong>in</strong>istrative action <strong>in</strong> the three matters was taken <strong>in</strong><br />

respect of the Applicant’s employment and those matters caused the depressive condition suffered<br />

by the Applicant.<br />

In view of its f<strong>in</strong>d<strong>in</strong>gs, the Tribunal was satisfied that the condition suffered by the Applicant resulted<br />

from reasonable adm<strong>in</strong>istrative action taken <strong>in</strong> a reasonable manner <strong>in</strong> respect of his employment,<br />

so it did not come with<strong>in</strong> the def<strong>in</strong>ition of “<strong>in</strong>jury” <strong>in</strong> the 1988 Act. Although there may have been other<br />

matters that contributed to the condition, no compensation was payable <strong>in</strong> accordance with the<br />

pr<strong>in</strong>ciples espoused <strong>in</strong> Hart v Comcare [2005] FCAFC 16; (2005) 145 FCR 29.<br />

The Tribunal affirmed the decision under review.<br />

Wilson and Comcare [2010] AATA 396 (28 May 2010) Canberra<br />

The Applicant submitted a claim for workers’ compensation <strong>in</strong> May 2008 for “anxiety” due to “ongo<strong>in</strong>g<br />

systemic unacceptable behaviour”, stress and bully<strong>in</strong>g. In November 2008, the Respondent<br />

determ<strong>in</strong>ed that the Applicant was not entitled to compensation under section 14 of the Safety,<br />

Rehabilitation and <strong>Compensation</strong> Act 1988 (Cth) (“1988 Act”) for “adjustment reaction with mixed<br />

emotional features” on the basis that, although the Applicant’s condition was contributed to, to a<br />

significant degree, by his employment, the condition was the result of “reasonable adm<strong>in</strong>istrative<br />

action” and thus not an “<strong>in</strong>jury” with<strong>in</strong> the mean<strong>in</strong>g of section 5A of the 1988 Act.<br />

In these proceed<strong>in</strong>gs, the parties agreed that s<strong>in</strong>ce the Applicant had conceded that the Applicant’s<br />

condition had been contributed to, to a significant degree, by his employment, the sole issue was<br />

whether the Applicant’s condition was suffered as a result of reasonable adm<strong>in</strong>istrative action taken<br />

<strong>in</strong> a reasonable manner <strong>in</strong> respect of his employment.<br />

The Tribunal found that the relevant adm<strong>in</strong>istrative actions <strong>in</strong>cluded: the Applicant not receiv<strong>in</strong>g<br />

Additional Responsibility Pay (“ARP”) at the level he expected; the <strong>in</strong>formal counsell<strong>in</strong>g session <strong>in</strong><br />

September 2007; the steps taken relat<strong>in</strong>g to the Applicant’s Performance Agreement 2006-2007; the<br />

processes surround<strong>in</strong>g the imposition of a Performance Improvement Process (“PIP”); and the<br />

meet<strong>in</strong>gs relat<strong>in</strong>g to the PIP <strong>in</strong> November and December 2007.<br />

The pr<strong>in</strong>cipal issue was whether the examples of adm<strong>in</strong>istrative action taken by the employer that<br />

affected the Applicant were “reasonable” for the purposes of section 5A(2) of the 1988 Act. In relation<br />

to the first adm<strong>in</strong>istrative action, the Tribunal noted that although the Applicant compla<strong>in</strong>ed about not<br />

receiv<strong>in</strong>g ARP at the expected level, and that there were delays <strong>in</strong> implement<strong>in</strong>g the arrangement,<br />

when offered the opportunity to pursue the matter the Applicant chose not to do so. In the<br />

circumstances, and given the absence of evidence from the Applicant on key issues, the Tribunal<br />

was not able to be satisfied as to whether the Applicant had a legitimate grievance on this issue and<br />

made no f<strong>in</strong>d<strong>in</strong>gs accord<strong>in</strong>gly.<br />

As to the second example of adm<strong>in</strong>istrative action, the Tribunal found there was noth<strong>in</strong>g “untoward”<br />

about the call<strong>in</strong>g or conduct of the meet<strong>in</strong>g, nor was it “irrational, absurd or ridiculous”. The action<br />

did not fall with<strong>in</strong> “bully<strong>in</strong>g” or “abuse of power”. Given that the Applicant’s work errors were clearly<br />

not acceptable behaviour, to arrange a meet<strong>in</strong>g with the Applicant to discuss the matter and counsel<br />

him was appropriate, and to do so <strong>in</strong>formally complied with the employer’s policies and pr<strong>in</strong>ciples. It<br />

followed that the Tribunal found that tak<strong>in</strong>g this step was lawful, and was reasonable adm<strong>in</strong>istrative<br />

action taken <strong>in</strong> a reasonable manner.<br />

Regard<strong>in</strong>g the steps taken relat<strong>in</strong>g to the Applicant’s Performance Agreement 2006-2007, the<br />

Tribunal considered that decisions made by management <strong>in</strong> this regard were both lawful and<br />

reasonable adm<strong>in</strong>istrative action. In terms of the imposition of the PIP, the Tribunal held that this<br />

process was <strong>in</strong>stituted <strong>in</strong> a reasonable manner. With respect to the meet<strong>in</strong>gs held with the Applicant<br />

<strong>in</strong> November and December 2007, the Tribunal held that the hold<strong>in</strong>g of the meet<strong>in</strong>gs and how they<br />

were conducted was not unfair and <strong>in</strong> those circumstances, the action taken was not unreasonable,<br />

nor were they taken out with a “deliberate desire to hurt, threaten or frighten someone with words or<br />

actions”. Given that the actions did not constitute bully<strong>in</strong>g, they were not undertaken <strong>in</strong> an<br />

unreasonable manner.<br />

The Tribunal highlighted that whilst some of the <strong>in</strong>teractions between the Applicant and his manager<br />

concerned the tak<strong>in</strong>g of adm<strong>in</strong>istrative action, and on their own would not be reasonable, <strong>in</strong> the<br />

circumstances, and given that reasonable action does not have to be perfect, provided it was<br />

“tolerable and fair”, the Tribunal did not f<strong>in</strong>d that these issues were an unreasonable manner of<br />

undertak<strong>in</strong>g various adm<strong>in</strong>istrative actions <strong>in</strong>volv<strong>in</strong>g the Applicant. In conclusion, the Tribunal upheld

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