Disease caused by reasonable administrative action not compensable

Employers should not shy away from making decisions affecting an employee's employment where they have a sound basis for doing so and can clearly articulate the reasons for the decision.

Commonwealth departments and agencies can be more confident in taking reasonable administrative action including performance management of their employees, following the High Court's decision in Comcare v Martin [2016] HCA 43.

It has underscored that disease or injury caused by, or worsened by, reasonable administrative action will not be compensable under the Safety, Rehabilitation and Compensation Act 1988 (Cth) - a position which had been thrown into some doubt by the view of the Full Federal Court when it considered this case on appeal.