austlii:nsw/NSWPIC/2025/349
General information, not legal advice.
NSWPIC
2025-07-23
Original judgment source is linked above.
"...the question of reasonableness is one of fact, weighing all the relevant factors. That test is less demanding than the test of necessity, but more demanding than the test of convenience. The test of 'reasonableness' is objective and must weigh the rights of employees against the object of the employment. Whether an action is reasonable should be attended, in all the circumstances, by questions of fairness."
"In my view when considering the concept of reasonable action the Court is required to have regard not only to the end result but to the manner in which it was effected."
"The following propositions are consistent both with the statutory language and the authorities that have construed s 11A(1) of the WC Act:
(i) A broad view is to be taken of the expression "action with respect to discipline". It is capable of extending to the entire process involved in disciplinary action, including the course of an investigation.
(ii) Nonetheless, for s 11A(1) to apply, the psychological injury must be wholly or predominantly caused by reasonable action taken or proposed to be taken by or on behalf of the employer.
(iii) An employer bears the burden of proving that the action with respect to discipline was reasonable.
(iv) The test of reasonableness is objective. It is not enough that the employer believed in good faith that the action with respect to discipline that caused psychological injury was reasonable. Nor is it necessarily enough that the employer believed that it was compelled to act as it did in the interests of discipline.
(v) Where the psychological injury sustained by the worker is wholly or predominantly caused by action with respect to discipline taken by the employer, it is the reasonableness of that action that must be assessed. Thus, for example, if an employee is suspended on full pay and suspension causes the relevant psychological injury, it is the reasonableness of the suspension that must be assessed, not the reasonableness of other disciplinary action taken by the employer that is not causally related to the psychological injury.
(vi) The assessment of reasonableness should take into account the rights of the employee, but the extent to which these rights are to be given weight in a particular case depends on the circumstances.
(vii) If an Arbitrator does not apply a wrong test, his or her decision that an action with respect to discipline is or is not reasonable is one of fact."
(1) saying to other team members words to the effect: "Can we go over to Maccas?", "Why are we doing this?" and "This is stupid?";
(2) saying to other team members in a sarcastic tone words to the effect: "Where's the hats?", "Where's the first aid kit?" and "Where's the team listing?", and
(3) laughing.
10 July 2024 she was told by two fire wardens that statements had been made about her behaviour during the evacuation and that she was upset because she did not know what she had done wrong. 10. On 12 July 2024 Ms Kelly-Jane Mann, the complex manager, made a post about the evacuation on the intranet. The post included a description of the incident that caused the fire as well as "learnings" from the evacuation and observations as to what worked well.
"It was disappointing to hear the amount of unnecessary commotion at the evacuation point, most team members were helpful and concerned in a stressful situation, a handful of team members were not."
Ms Mann that she had gotten this "wrong and incorrect". It is the applicant's evidence that she felt targeted and isolated. 8. On 31 July 2024 Mr James Ribbons, the respondent's operations manager, held a meeting with the applicant. It is at that meeting, for the first time, that the allegations made against her are actually put to the applicant. The allegations comprised three allegations which relate to the applicant's conduct on 9 July 2024 during the evacuation, two allegations which relate to the applicant's conversation with Ms Mann on 12 July 2024 about her intranet post and one allegation about a conversation with "Sam" which was alleged to have occurred on or around 15-21 July. 9. Prior to the meeting the respondent had conducted interviews with staff and obtained statements. These statements were not provided to the applicant.[7] 10. The applicant appears to have been initially verbally advised on Friday 26 July at 7.30am by Mr Ribbons of a meeting on 26 July 2024. The meeting was subsequently re-scheduled to
31 July so the SDA Organiser could attend. There is no evidence from Mr Ribbons as to what the applicant was told about the meeting. 11. It is the applicant's evidence that she was at no time told about the respondents Employee Assistance Program (EAP) and there is no evidence from the respondent indicating that the respondent informed the applicant about their EAP. 12. Even though there appears to have been investigations undertaken into the applicant's behaviour from at least 12 July 2024 at no point prior to the meeting on 31 July 2024 is the applicant advised of the allegations made against her, the basis for the allegations, the process involved, who would be conducting the investigations or the potential disciplinary action to which she could be subjected. 13. The Interview Record of 31 July 2024 records that the purpose of the meeting was to "investigate & fact find/to get your response to" allegations that occurred on 9 July 2024 during the store evacuation. However, only three of the six allegations related to what occurred on 9 July 2024 during the evacuation. 14. In the applicant's submission the questions which were put to the applicant in the meeting on 31 July 2024 were not in the nature of fact-finding questions but rather presume that the applicant is guilty of the conduct described in each of the allegations. I agree with the applicant's submission. The questions put to the applicant in respect to the allegations in respect to her conduct during the evacuation were:
(a) "How would you like to respond?"
(b) "Do you understand the seriousness and safety risks during an evacuation?"
(c) "Do you think this behaviour is in line with our BESAFE2100 'Health and Safety' responsibilities and accountabilities."
(d) "Considering this was a stressful situation for a number of people that have not been involved in a real evacuation, do you believe you were a team player with your communication style?"
(e) "How do you think your actions and comments would have made other team members including the supervisors feel?"
(f) "How would you describe your tone?"
(a) "How would you respond to this?"
(b) "How would you describe your tone?"
(c) "Can you please provide context around this comment?"
(d) "What did you mean by that?"
"On 9th July 2024 at approx 2pm you allegedly were not taking the real evacuation seriously and said to other team members during the evacuation in a sarcastic tone to the effect of: a) 'where's the hats?' b) 'Where's the first aid kit?' C) 'Where's the team listing?'"
9 August 2024 and that she was able to return to work on light duties in September 2024. That on the day that she returned to work she was supposed to speak to Ms Mann, her return to work coordinator, however Ms Mann did not speak to her and nobody else did. It is the applicant's evidence that she was subsequently told that someone else would be appointed as her return to work coordinator however this did not happen until several months later. 4. The applicant relies on the opinion of Dr Kumagaya, psychiatrist, who provided a forensic report to the applicant dated 6 December 2024. Dr Kumagaya took a history of the evacuation and the investigation into allegations made against her. The doctor also took a history of how in and around October 2024 the applicant attempted a return to work on full time hours, although she was unable to cope with her work duties owing to her psychological symptoms and how following a period of approximately two weeks, the applicant's work hours were reduced to five hours per day, five days per week. 5. Dr Kumagaya diagnosed a major depressive disorder with anxious distress. The doctor anticipated improvement in the applicant's mental state and functioning with access to treatment. 6. In the opinion of Dr Kumagaya, the applicant's enduring incapacity results from her work-related psychological injury. That prior to her subject workplace injury, the applicant did not have a psychological incapacity for work. Subsequent to her workplace injury, the applicant was fully incapacitated for work until in and around October 2024, from which point, she has been partially incapacitated for work, thereafter 7. On 16 September 2024 the applicant's general practitioner (GP) Dr Lorenzo Susino responded to a questionnaire advising that the applicant was certified as unfit but would see her psychologist and return to work on restricted duties in the near future. The doctor observed that the only barrier to the applicant's return to work was contact with the Complex Manager (Ms Mann). In the opinion of the Dr Susino the applicant could return to work without the Complex Manager present. 8. On 10 March 2025 Dr Susino reported that the applicant was suffering an incapacity for work as a result of her psychological injury. The doctor observed that the applicant's mood was low, that she was on edge, that she was not sleeping and had negative and intrusive thoughts regarding her workplace. She was fearful when she thought about the possibility of contact with the respondent's staff members. She had lost confidence, had difficulty concentrating and had lost motivation. She had become irritable, and this had affected her home life. 9. In the respondent's submission the only barrier identified by the applicant's GP to the applicant returning to work both in the Certificates of Capacity and in Dr Susino's response to the questionnaire on 16 September 2024 was contact with the Complex Manager. Whilst this is true, and whilst contact with the Complex Manager may have been a barrier to the applicant returning to work and undertaking work duties, at no time has the applicant been certified fit for pre-injury hours. There is also no evidence that at any time the applicant recovered from the psychological injury which she sustained. 10. In the respondent's submission whilst Dr Kumagaya provides an opinion that from in or around October 2024 the applicant has been partially incapacitated for work the doctor provides no specific outline of limited hours, limited duties or which employer the doctor says the applicant cannot work for, so in the respondent's submission there appears to be no limitation in that regard from Dr Kumagaya. In the applicant's submission when the applicant saw Dr Kumagaya it correlated with a time when she was attempting to get back to work. 11. I accept the applicant's submission. The applicant was examined by Dr Kumagaya on
6 December 2024. The applicant had returned to work in October 2024 on limited hours however by the time that the applicant attended on Dr Kumagaya for examination the applicant was again off work and has not returned to work. At the time of the examination the applicant was certified fit to work five hours per day, five days per week however the situation as to the applicant's capacity to work appears to have been fairly fluid. Relevantly whilst the applicant had basically been certified fit to work five hours per day, five days per week from 17 October 2024 the applicant was certified with no current capacity for work from
1 October 2024 to 7 October 2024, from 13 November 2024 to 15 November 2024, and was then certified with no current work capacity from 20 December 2024. 12. Clinical record "#74"[10] which is unfortunately undated appears to relate to a consultation which occurred on or about 12 November 2024 as at this time the applicant was issued with a Certificate of Capacity for three days off work. The clinical record records "ongoing anxiety", "not sleeping well - sleeping for 4-5 hours", "feels on edge +++ at work, cannot relax" and that the applicant was to trial "tamaze". This is the last clinical record in time and indicates that the applicant was struggling at work. The prior clinical records "#71", "#72" and "#73" also indicate that the applicant continued to suffer from anxiety related to her work. 13. In the respondent's submission the downgrade in the applicant's capacity to no current capacity for work in the Certificate of Capacity dated 19 December 2024 occurs as a result of litigation neurosis which is not compensable. 14. I do not accept the respondent's submission. The said Certificate of Capacity does record "workplace/insurance denied claim causing more distress" as a factor delaying recovery. There is no medical opinion supporting that the applicant is suffering from litigation neurosis and Dr Susino who reported on the applicant on 10 March 2025 provided an opinion that the applicant's incapacity is due to the work-related psychological injury. Also as previously discussed clinical records "#71", "#72" and "#73" indicate that the applicant was continuing to suffer from anxiety related to her work and struggle with her work duties. 15. In the respondent's submission the medical opinions on which the applicant relies as to the cause of her incapacity should not be accepted. In the respondent's submission the applicant did not disclose her psychiatric history to Dr Kumagaya. 16. In respect to the applicant's psychiatric history Dr Kumagaya records that the applicant acknowledged having attended a marriage counsellor approximately three years prior. The applicant otherwise denied any pre-injury psychiatric background. It is also the applicant's evidence in her statement of 3 December 2024 that she is going through menopause. 17. I do not accept the respondent's submission. The clinical records from the practice of
Dr Susino evidence that the applicant was taking the antidepressant Cipramil at least as early as 2008. The clinical record for 13 October 2014 records that the applicant had reduced her dose of Cipramil and the clinical record for 1 October 2015 records that the applicant had ceased taking Cipramil. 18. The clinical record for the applicant's consultation on 27 March 2017 questioned whether the applicant was suffering from premenstrual dysphoric disorder with the applicant feeling agitated, worried and overwhelmed. The applicant was provided a prescription for Cipramil which she appears to have again ceased taking by 31 August 2017. 19. On 22 March 2022 Dr Susino recorded that the applicant had developed menopausal symptoms. The symptoms recorded included low mood, irritability and emotional. The applicant had further consultations in respect to her menopause throughout 2022 and on
4 November 2022 Dr Susino noted that there were tensions in the applicant's marital relationship. There are then references in the clinical records to the applicant's relationship issues in late 2022 and early 2023. 20. There are no references in the clinical records to marital, menopausal or psychological issues after mid-2023. The complaints in respect to the applicant's mental health then re-commence on 9 August 2024 with the subject work issues. There is nothing to indicate that the applicant's prior mental health issues are the cause of the applicant's current incapacity. As was submitted on behalf of the applicant the applicant's psychological state appears to have been stable prior to the subject workplace injury with the clinical records recording no relevant complaints from mid-2023. There is also no evidence that the applicant's previous mental health issues affected her capacity to perform her work duties and Dr Susino, the applicant's long time GP, is of the opinion that the applicant's incapacity is due to the work injury. 21. Dr Susino in his response to the medical questionnaire dated 16 September 2024 also noted when asked about pre-existing psychological conditions that the applicant suffered from perimenopausal depressive symptoms which had been diagnosed in 2022 and which were treated and stabilised by early 2023. 22. I accept the opinion of Dr Susino as to the applicant's incapacity. Dr Susino is the applicant's long time GP and is best placed as the doctor who has reviewed and treated the applicant on an ongoing basis to provide an opinion as the applicant's capacity. The Certificates of Capacity are also supported by the doctor's response to the medical questionnaire dated 16 September 2024 as well as the doctor's report of 10 March 2025 which evidences a decline in the applicant's mental health. Whilst Dr Kumagaya supports that the applicant suffers from an incapacity as a result of the work injury the report is limited in its utility having been obtained at a time when the applicant's condition was not stable. 23. For the above reasons I find that the applicant has suffered and continues to suffer from an incapacity as a result of the accepted psychological injury. 24. The applicant was certified fit for suitable duties five hours per day, five days per week from 17 October 2024 to 19 December 2024 except for from 13 November 2024 to 15 November 2024 when the applicant was certified with no current work capacity. The applicant has been certified with no current work capacity since 20 December 2024. 25. The applicant does not appear to have worked since 27 October 2024. There is no explanation as to why the applicant did not work suitable duties between 28 October 2024 to 12 November 2024 and from 16 November 2024 to 19 December 2024 in circumstances where the applicant had returned to work with restrictions and was certified fit to work restricted hours. I therefore find in accordance with the Certificates of Capacity that the applicant had a capacity to work 25 hours per week between 28 October 2024 to
12 November 2024 and from 16 November 2024 to 19 December 2024. In accordance with the Certificates of Capacity I find that the applicant has had no current work capacity from
20 December 2024. 26. I understand from the payslip[11] for the period 14 October 2024 to 27 October 2024 that the applicant was paid $29.0681 per hour which would provide an income of $726.70 for a 25 hour work week. I find that the applicant had a capacity to earn of $726.70 per week between 28 October 2024 to 12 November 2024 and from 16 November 2024 to 19 December 2024. 27. There will be an award for the applicant in respect to weekly compensation as follows:
(a) $411.59 per week from 17 October 2024 to 27 October 2024, pursuant to s 36 of the 1987 Act;
(b) $341.10 per week from 28 October 2024 to 7 November 2024, pursuant to s 36 of the 1987 Act;
(c) $172.50 per week from 8 November 2024 to 12 November 2024, pursuant to s 37 of the 1987 Act;
(d) $899.20 per week from 13 November 2024 to 15 November 2024, pursuant to s 37 of the 1987 Act;
(e) $172.50 per week from 16 November 2024 to 19 December 2024, pursuant to s 37 of the 1987 Act;
(f) $899.20 per week from 20 December 2024 to 30 March 2025, pursuant to s 37 of the 1987 Act, and
(g) $903.20 per week from 1 April 2025 to date and continuing subject to indexation, pursuant to s 37 of the 1987 Act.
[1] Department of Education and Training v Sinclair [2005] NSWCA 465; (2005) 4 DDCR 206 (Sinclair).
[2] Pirie v Franklins Ltd [2001] NSWCC 167; (2001) 22 NSWCCR 346 (Pirie); Sinclair; Heggie.
Clima
Bunnings Group Ltd [2025] NSWPIC 349;
(2001) 22 NSWCCR 346