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ARTICLE · 17 DECEMBER 2012

Employer Policy Defeats Workplace Stress Claim

This was a claim for damages from stress caused in the workplace by allegations of negligence and breach of contract.

AustraliaEmployment and HR

Introduction

Anecdotal evidence suggests that whilst workplace stress claims continue to rise, they do not often result in actions for common law damages. However, one such claim was recently considered by the District Court in Finlay v The State of Western Australia [2012] WADC132.

The Court dealt with a claim for damages arising from stress caused in the workplace involving allegations of negligence and breach of contract. The decision highlights the importance for employers of conducting regular performance reviews and establishing and implementing pragmatic policies within their organisations.

The Facts

The Plaintiff, a long term employee of the Defendant, alleged that she suffered a psychiatric injury and sought damages as a result of being subjected to excessive workloads and distressing telephone incidents. She claimed her illness developed during her employment between 2003 to 2007 (material period) and particularly, as a result of her being subjected

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