In Headway Support Services v Wickham an employer was successful in appealing an employee’s stress claim, with the Supreme Court of Tasmania ruling the injury arose from a reasonable administrative action.
The employee was called into a meeting with her supervisor and manager to discuss why she had failed a work related course due to literacy skills and to offer literacy support. The employee argued management was insensitive and dismissive during the meeting and cut her off while she was talking. The Supreme Court found the reasonableness of the action by management and the manner the action was taken was the appropriate measure. There is no requirement for the action to be friendly or sensitive.
Further, there was medical evidence to suggest that the symptoms of stress including sleep disturbance had been ongoing for some time and was not work related. The employer was not aware of any pressure or struggle with her work prior to the claim being made.
It was a reasonable management action to meet with the employee to discuss reasons as to why she failed the course. The managers were firm and clear in their discussions. Where an injury such as a stress claim arises out of a reasonable management action, the injury will not be compensable. Managers should allow employees to voice their concern in relation to the action, however, as long as the action taken is reasonable, liability for injury will not attach. Discussions with affected employees will help them understand the reasons behind management action and possibly prevent any misunderstanding or apprehension that may lead to the making of a stress claim.