Question 3
62 Subject to one matter, at [59] the Tribunal set out what Comcare accepted was the correct approach to assessing whether the administrative action was taken in a reasonable manner. That is to say, whether or not an administrative action was undertaken reasonably is a question of fact to be assessed objectively, taking into account the attributes and circumstances, including the emotional state of the employee concerned. The qualifying matter is Comcare's submission in relation to the effect of Martin. Subject to that matter, which concerned what Comcare first described by reference to Martin at [48] as the legally irrelevant issues of the employee's perception and subjective psychological drivers of his reaction but later characterised as the operation of the exclusion not being dependent on them by reference to Martin at [46], Comcare did not argue that the present Tribunal's references to Drenth, Stieglitz, Martinez (No 2) and Keen had led into error. Comcare did also add two minor qualifications regarding the application of those cases: first, that different words were not to be substituted for those in the statute; second, that any list of circumstances to be taken into account would not be the entire list of such matters. Comcare cited Martinez (No 2) for these propositions. Those qualifications were not in controversy between the parties to this appeal.
63 The High Court in Martin identified the single issue of principle to be resolved on the facts found by the Tribunal as whether the Tribunal was correct in law to conclude that the deterioration of the employee's mental condition triggered by her contemplation of a perceived consequence of the decision was a disease which she suffered as a result of that decision within the meaning of s 5A(1). At [45], the High Court said that an employee has suffered a disease "as a result of" administrative action if the administrative action is a cause in fact of the disease which the employee has suffered. The administrative action need not be the sole cause. There may be multiple causes, some of which might even be related to other aspects of the employee's employment. What was necessary was that the taking of the administrative action was an event without which the employee's ailment or aggravation would not have been a disease within the meaning of s 5A(1)(a) as defined in s 5B(1), that is, it would not have been contributed to, to a significant degree, by the employee's employment. At [46], the High Court said that that reading conformed to the purpose of the exclusion. The High Court referred to the Explanatory Memorandum to the Safety, Rehabilitation and Compensation and Other Legislation Amendment Bill 2006 and said that the taking of administrative action in respect of employee's employment was in that way sought to be insulated from need for concern about the psychological effect of the decision on the employee. The High Court said this purpose would be defeated if the operation of the exclusion were dependent upon the subjective psychological drivers of the employee's reaction.
64 In relation to Martin, I understood Comcare to submit that the High Court, particularly at [46] but also at [48], held that "subjective psychological drivers of the employee's reaction" were not so much legally irrelevant to the question whether reasonable administrative action was taken in a reasonable manner in respect of the employee's employment, but rather that question was not to be approached as dependent only on those factors and could not depend on uncommunicated subjective perceptions. I accept the submission put on behalf of Mr Stewart that Martin at [46] does not require that no regard is to be paid to the effect which the administrative action has, and was observed by the person taking the administrative action, to have on the employee. It was put that it would be impermissible for the Tribunal to look only at the impact on the employee but this did not mean that the Tribunal could not look at that impact.
65 In effect, Comcare accepted that the matters set out at [59]-[63] of the Tribunal's reasons would not otherwise have let it into error. Comcare's key contention was that thereafter, at [64], and immediately before the Tribunal commenced its analysis of that issue at [65], the Tribunal referred to Wiegand, at [31] of that judgment.
66 As is common ground, Wiegand did not concern s 5A, which had not at that point been enacted. At that point, the definition of "injury" contained an exclusion in respect of a disease, injury or aggravation suffered by an employee as a result of reasonable disciplinary action taken against the employee or failure by the employee to obtain a promotion, transfer or benefit in connection with his or her employment. That part of the definition did not require consideration by the Federal Court in Weigand as the Tribunal had not at that stage considered that issue.
67 In that case, a Professor Goldney had offered his opinion on the assumption that an incident or state of affairs to which Mr Wiegand was exposed in the course of his employment could only contribute to a material degree to an aggravation of his ailment if the incident or state of affairs constituted a significant breach of reasonable practice, so as to render Mr Wiegand's perceptions objectively reasonable. It was in that context that von Doussa J stated his opinion that it was open on the evidence for the Tribunal to hold that one or more of the incidents or states of affairs complained of by Mr Wiegand contributed in a material degree to an aggravation of the depressive disorder suffered by him. For that to be the case there was no requirement at law that the interpretation placed on the incident or state of affairs by the employee, or the employee's perception of it, was one which passed some qualitative test based on an objective measure of reasonableness.
68 In my opinion the reference by the present Tribunal to Wiegand in relation to Question 3 could have led the Tribunal into error if that was what the Tribunal had applied. But this is an unusual case because the reference to Wiegand followed other, more numerous, references to cases which had not cited an incorrect test but accurately identified that the issue of whether reasonable administrative action was "taken in a reasonable manner" in respect of the employee's employment was a question of objective fact, related to the specific conduct involved, was to be assessed without the benefit of hindsight, and did not involve asking whether the action could have been done more reasonably. For this reason, the issue has to be addressed as a matter of substance.
69 The matter for present resolution therefore becomes whether, in the context of all that preceded it from [59]-[64], the Tribunal's reasons at [65] reveal error. As I have explained, the question arises in that way because immediately before the Tribunal's reference to Wiegand it had stated accurate principles from other decisions and authorities.
70 Did the Tribunal in substance identify the administrative action, the facts and circumstances giving rise to the requirement for the administrative action, the way in which the administrative action impacted upon the worker, the circumstances in which the administrative action was implemented, and any other matters relevant to determining whether the administrative action was taken in a reasonable manner by the employer? Did the Tribunal in substance decide whether what it assumed for this purpose to be reasonable administrative action was taken in a reasonable manner by approaching it as a question of objective fact, to be determined against the ordinary standards of reasonable employers in all the circumstances of the case?
71 In my opinion, the reasons of the Tribunal are to be read as a whole and in light of the Tribunal's findings about the meeting on 15 January 2016 at [25]-[30]. In particular I note that at [29] the Tribunal set out the evidence not only of Mr Stewart but also of Ms Henderson, who was the third person of the three who attended the meeting and who gave evidence about it.
72 Ms Henderson confirmed Mr Stewart's evidence that Mr Stewart's email sent to Mr Linehan in the evening of Sunday, 10 January 2016 was described by Mr Linehan as disrespectful and that she understood that Mr Linehan objected not to the content of the email but the fact that Mr Stewart sent an email rather than phoning Mr Linehan to advise him that he, Mr Stewart, was unable to attend work the following day. Both Mr Stewart and Mr Linehan raised their voices and were speaking over each other about whether the email should have been sent. Ms Henderson's evidence, the Tribunal wrote at [29], was that Mr Linehan was fixated on the communication method which in her view displayed a "lack of judgement".
73 Turning to [65] of the Tribunal's reasons, Comcare did not put that [65] was just a list of perceptions, but put that there were perceptions in it.
74 In my opinion the Tribunal did not proceed by reference to whether or not the events at the meeting created a perception in the mind of Mr Stewart, whether reasonable or unreasonable in the thinking of others, as referred to in Wiegand at [31]. To the contrary, in my opinion, the Tribunal applied a qualitative test based on an objective measure of reasonableness, contrary to what the Tribunal would have done if it had, wrongly, applied Wiegand.
75 The Tribunal set out what it regarded as the relevant circumstances of the case as those circumstances were known at the time without the benefit of hindsight. The Tribunal also took into account the circumstances which gave rise to the requirement for the administrative action and the way in which the administrative action impacted upon Mr Stewart.
76 The Tribunal made findings as to the objective facts and as to what was objectively known and, inferentially, known to Mr Linehan. Mr Linehan did not give evidence before the Tribunal.
77 It is correct to say that the Tribunal referred to Mr Stewart being "further unsettled" and to his being "increasingly anxious and frustrated", but that was in light of the objective facts, was against the background of the facts found by the Tribunal at [29], and related to the apparent and foreseeable effect of Mr Linehan's conduct.
78 In my opinion, what the Tribunal said at [65] constituted findings of fact by it, based on its evaluation of the evidence given by Mr Stewart and by Ms Henderson. That is, the Tribunal found that, for example, Mr Stewart was observably further unsettled by the attendance of Ms Henderson at the meeting for the reasons the Tribunal gave. The Tribunal found as a fact that the meeting did not cover the matter for which it was engaged, namely a 'handover'. The Tribunal found as a fact that Mr Linehan's use of the word disrespectful in relation to Mr Stewart's method of communication, by email, implied that the applicant, Mr Stewart, had breached the APS Code of Conduct.
79 I accept the submission on behalf of Mr Stewart that what is said in [65] is not merely an account of the perception formed by Mr Stewart, but is substantially an account of what was said to him, what he said to Mr Linehan and how he obviously reacted to the exchange with Mr Linehan. In the context of that interaction, and as properly described, the matters in [65] were expressed or were obvious to those who were at the meeting. They were therefore part of all the circumstances of the case, as concerning the way in which the administrative action impacted upon the employee and the circumstances in which the administrative action was implemented.
80 I therefore conclude that the misstatement by the Tribunal at [64], by reference to Wiegand at [31], in light of what went immediately before [64] and what went immediately after it, did not affect the Tribunal's conclusion as to whether the assumed "reasonable administrative action" was not taken in a reasonable manner.
81 Because I have found that there was no error of law in this respect, I do not find it necessary to consider Comcare's reliance on Smith v Comcare [2013] FCAFC 65; 212 FCR 335, which did not precisely concern the present question but a different question which was whether the Court, having found an error of law, could exclude the possibility that that error affected the Tribunal's fact finding. The difference here is that the Tribunal's analysis at [65] of its reasons is explicit and the error is either found there or it is not.
82 Contrary to Comcare's submissions, I do not regard the Tribunal as having asked itself the question whether the administrative action could have been taken in a more reasonable manner.
83 Nor do I accept Comcare's submission that [65] of the Tribunal's reasons provides no actual evaluation.
84 I do not accept Comcare's submission that the Tribunal's approach, contrary to Martin, was dependent only on the "subjective psychological drivers of the employee's reaction".
85 Subject to what follows as to the possible infection of the Tribunal's consideration of this matter by the matters considered in Question 1 in Comcare's notice of appeal, I would answer Question 3: "No."
86 In my opinion, the infection for which Comcare contends in this case, by the Tribunal's erroneous reasoning as to Question 1 infecting its reasoning as to Question 3, is not made out because the Tribunal approached the issue of whether the reasonable administrative action was taken in a reasonable manner on the express assumption that the meeting on 15 January 2016 was reasonable administrative action: see [66]. I take into account that earlier, at [54], the Tribunal had said it was not necessary for it to consider the issues canvassed by Questions 2 and 3 and was addressing whether the administrative action was reasonable and taken in a reasonable manner "for completeness". But as it made clear also at [55], the Tribunal went on to make findings on the assumption that it was wrong in its conclusion or conclusions that the meeting held on 15 January 2016 was not "administrative action", and on the further assumption that it was "reasonable administrative action", thus giving rise to its analysis of whether that reasonable administrative action was taken in a reasonable manner. This approach of reasoning from an assumption made in the alternative does not reveal error, at least where, as in the present context, the assumption goes merely to a question of characterisation, rather than fact. Relevantly, the reasoning of the Tribunal on the matters canvassed by Question 3 proceeded by considering whether Mr Linehan's conduct at the meeting on 15 January 2016 - that event being assumed to bear the character of reasonable administrative action taken in respect of the applicant's employment - was taken in a reasonable manner.