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Kelly v Workers' Compensation Regulator [2022] QIRC 366 (26 September 2022)

Last Updated: 27 September 2022

QUEENSLAND INDUSTRIAL RELATIONS COMMISSION

CITATION:
Kelly v Workers' Compensation Regulator [2022] QIRC 366
PARTIES:
Kelly, Lynette Grace
(Appellant)
v
Workers' Compensation Regulator
(Respondent)
CASE NO:
WC/2020/175
PROCEEDING:
Appeal against decision of Workers' Compensation Regulator
DELIVERED ON:
26 September 2022
HEARING DATE:
27, 28, 29 & 30 September 2021
MEMBER:
Dwyer IC
HEARD AT:
Brisbane
ORDER:
  1. The appeal is allowed.
  1. The decision of the Respondent of 26 November 2020 is set aside.
  1. The Appellant's application for compensation under the Workers' Compensation and Rehabilitation Act 2003 (Qld) is accepted.
  1. The Respondent is to pay the Appellant's costs of and incidental to the appeal, to be agreed or, failing agreement, to be subject to a further application to the Commission.
CATCHWORDS:



WORKERS' COMPENSATION – APPEAL AGAINST DECISION OF WORKERS' COMPENSATION REGULATOR – psychiatric or psychological injury – Appellant employed as administration officer – allegation that Appellant was bullied by her manager and suffered from anxiety and depression - whether Appellant's injury was excluded pursuant to s 32(5) of the Workers' Compensation and Rehabilitation Act 2003 – whether Appellant's personal injury arose out of, or in the course of, reasonable management action taken in a reasonable way in connection with her employment – management action not reasonable - decision of workers' compensation Regulator set aside
LEGISLATION:
CASES:
Church v Simon Blackwood (Workers' Compensation Regulator) [2015] ICQ 031; (2015) 252 IR 461
Qantas Airways Limited v Q-Comp [2006] QIRComm 27; (2006) 181 QGIG 301
Kuenstner v Workers' Compensation Regulator [2016] QIRC 083
State of Queensland v Q-COMP [2010] ICQ 6
Allwood v Workers Compensation Regulator [2017] QIRC 88
Davis v Blackwood [2014] ICQ
State of Queensland (Department of Agriculture and Fisheries) v Workers' Compensation Regulator [2020] QIRC 097
Groos v WorkCover Queensland [2008] QIC 52; 165 QGIG 106
Kiesouw v Workers' Compensation Regulator [2017] QIRC 064
Nichols v Workers' Compensation Regulator [2017] QIRC 111
Tuesley v Workers' Compensation Regulator [2021] QIRC 071
APPEARANCES:
Mr M.B. White of Counsel, instructed by Mr P Boyce of Butler McDermott Lawyers for the Appellant
Mr S.P Sapsford of Counsel, instructed by Ms O Steele of the Workers' Compensation Regulator

Reasons for Decision


Background to Appeal

The Act and the relevant legal principles

  1. Meaning of Injury
(1) An injury is personal injury arising out of, or in the course of, employment if the employment is a significant contributing factor to the injury.

...

(3) Injury includes the following—

(a) a disease contracted in the course of employment, whether at or away from the place of employment, if the employment is a significant contributing factor to the disease;

(b) an aggravation of the following, if the aggravation arises out of, or in the course of, employment and the employment is a significant contributing factor to the aggravation—

(i) a personal injury;

(ii) a disease;

...

(5) Despite subsections (1) and (3), injury does not include a psychiatric or psychological disorder arising out of, or in the course of, any of the following circumstances —

(a) reasonable management action taken in a reasonable way by the employer in connection with the worker's employment;

...


Management Action

The exclusory action in s32(5) of the Act was, in my view, intended by Parliament to relate to specific management action directed to the Appellant's employment itself, as opposed to action forming part of the everyday duties or tasks that the worker performed in their employment. Therefore the management action said to enliven s 32(5) of the Act must be something different to the everyday duties and incidental tasks of the Appellant's employment.

(Emphasis added)


Reasonable Management Action

The task of the Commission when applying s 32(5) does not involve setting out what it regards as the type of actions that would have been reasonable in the circumstances. There may be any number of actions or combinations of actions which would satisfy s 32(5). The proper task is to assess the management action which was taken and determine whether it was reasonable and whether it was taken in a reasonable way. Sometimes, that may involve consideration of what else might have been done but that will only be relevant to whether what was done was, in fact, reasonable.

(Emphasis added)

[25] The determination of whether the management action is reasonable and whether such action was taken in a reasonable way is evaluative as well as judgemental. Whether the management action is reasonable and whether such action was taken in a reasonable way will be an inquiry of fact to be determined objectively.

[26] Reasonableness does not necessarily equate with 'industrial fairness' although considerations of 'fairness' will always be relevant. An imperfection in management action may not justify the characterisation of the management action as unreasonable. Management action need only be reasonable; it does not need to be perfect. Instances of imperfect but reasonable management action may, in the appropriate circumstances, be considered a blemish and management action does not need to be without blemish to be reasonable.

[27] Reasonable, in the context of s 32(5) of the Act, means reasonable in all the circumstances of the case. It is the reality of the employer's conduct that must be considered and not the employee's perception of the employer's conduct.

[28] However, the reasonableness of action by management has to be considered '... in connection with the worker's employment' which requires consideration of all disparate elements which contribute to the injury. In an appropriate case, that consideration may require a global view of the management action to determine if the action was reasonable. However, simply because a large number of stressors are nominated does not mean a consideration of the impact of the stressors on a global basis is justified.

[29] Such a global view may be justified where there are repetitive blemishes joined by subject matter, time and personality in a discordant workplace housing.

(Emphasis added)

Matters not in dispute

(a) Ms Kelly was a 'worker' within the meaning of s 11 of the Act;

(b) On the medical evidence available Ms Kelly sustained a personal injury of a psychiatric nature within the meaning of s 32(3)of the Act;

(c) Ms Kelly's injury arose out of her employment, which was a significant contributing factor; and

(d) Ms Kelly's injury arose out of, or in the course of, management action.[11]

Questions for determination in this appeal

Witnesses called to give evidence


The stressors

  1. On or around June 2014, there was an incident whereby Mr Wetherall was standing over the top Ms Kelly. He was yelling at her to the point he was spitting on her. She felt intimidated, had numbness, pins and needles in her arms and legs and lost the ability to verbalise anything;

  1. On 27 March 2020 Mr Wetherall refused to allow Ms Kelly access to paid leave without any reasonable basis which caused her to become very stressed;

  1. On 1 and 2 April 2020, Mr Wetherall was aggressive, defensive and angry in his interactions with Ms Kelly, causing her to become distressed;

  1. Ms Kelly's interactions with Mr Wetherall on 2 April 2020 caused her to become physically sick;

  1. Mr Weatherall was unpredictably rude and abrupt in his dealings with staff and clients and would frequently ignore, intimidate and harass people in his interactions. This caused Ms Kelly significant stress and anxiety;

  1. Mr Weatherall frequently had angry outbursts of aggressive behaviour and the uncertainty of Mr Wetherall's behaviour caused Ms Kelly enormous stress and anxiety;

  1. Ms Kelly had access to the Kokoda Spirit Facebook account which had inappropriate content which was accessible to her. Mr Wetherall was aware of this. Viewing the material caused Ms Kelly to become distressed; and

  1. Mr Wetherall made complaints that Ms Kelly stole money from the business by overpaying herself. Mr Wetherall also accused Ms Kelly of downloading private images of him to a USB and distributing the images to others. The complaints were not substantiated and have since been withdrawn. This caused Ms Kelly to be very anxious.

Consideration – elements of s 32 of the Act

'Worker'

'Personal injury'

'Arising out of or in the course of employment'

'Employment is a significant contributing factor'

I think they're all significant. The fact of the matter is that most mental health related conditions don't just start instantaneously...But not every single stress leads to distress, and not every single distress will lead to anxiety and mental health that goes on. So often these things are related to issues that continue over a long period of time. And finally, the pathophysiology of the mental health related condition takes over and ...the person is then ill...So...I would suggest to you that there are contributory factors that continued to happen over a long period of time, and it was that event that was then that final insult that caused the presenting mental health condition or conditions.

...so I would still put to you that (if) you stress the person long enough, you may distress them eventually, which then could lead to a mental illness.

Consideration - stressors

Angry outbursts of aggressive behaviour – stressors 1, 5 and 6

Inappropriate content on company Facebook account – stressor 7

Complaints about overpayment and distributing private images – stressor 8


Events from 27 March to 3 April 2020 – stressors 2, 3 & 4

As you know, you and other employees were stood down from your employment on 27 March 2020...

You instructed me on the 27th of March to not come into work on Monday or Tuesday until you could "sort things" out. At this time I was also instructed to come in on Wednesday the 1st April to do, in your words, the "shit jobs, that you didn't want to do"...

The events that took place above don't align with a "stand down"....

I disagree that you were not aware that you were stood down...on 27 March 2020. Conversations around standing the team down ...had been taking place...since Wednesday 25 March...

On Friday 27 March I met with you again... It was then agreed between you and myself...you would be stood down from that day and I would provide any work that I could...

Lyn, I firmly stand by my position that you were stood down on Friday 27 March and whilst you worked a few hours on Wednesday 1 April, this was work that I had available...and I just relaxed the stand down to allow you to work those hours and then it went back into place...

Conclusion

Order

  1. The appeal is allowed.

  1. The decision of the Respondent of 26 November 2020 is set aside.

  1. The Appellant's application for compensation under the Workers' Compensation and Rehabilitation Act 2003 (Qld) is accepted.

  1. The Respondent is to pay the Appellant's costs of and incidental to the appeal, to be agreed or, failing agreement, to be subject to a further application to the Commission.



[1] T 2-15, ll 17-22.
[2] Church v Simon Blackwood (Workers' Compensation Regulator) [2015] ICQ 031; (2015) 252 IR 461, [24]-[27] (Martin J, President).
[3] Qantas Airways Limited v Q-Comp [2006] QIRComm 27; (2006) 181 QGIG 301.
[4] Kuenstner v Workers' Compensation Regulator [2016] QIRC 083, [10].
[5] State of Queensland v Q-COMP [2010] ICQ 6, [21].
[6] Allwood v Workers Compensation Regulator [2017] QIRC 88 at [68].
[7] Davis v Blackwood [2014] ICQ 9, 47.
[8] [2020] QIRC 097.
[9] Citations omitted.
[10] See paragraph 6 of the written submissions tendered at hearing on behalf of the Regulator.
[11] Ms Kelly contends that only stressors 2, 3 and 4 arise out of management action.
[12] See s 11 of the Act. See also paragraph 6(i) of the Regulator’s submissions dated 30 September 2021.
[13] Exhibit 11.
[14] Exhibit 12.
[15] Closing submissions of the Regulator, paragraph 31.
[16] T 2-15, ll 33-42.
[17] Stressors 5 and 6 as identified in the Appellant’s outline of closing argument dated 30 September 2021.
[18] Exhibit 4A and Exhibit 9.
[19] Stressor 7 as identified in the Appellant’s outline of closing argument dated 30 September 2021.
[20] Stressors 2,3 and 4 as identified in the Appellant’s outline of closing argument dated 30 September 2021.
[21] Stressor 8 as identified in the Appellant’s outline of closing argument dated 30 September 2021.
[22] T 2-15, ll 30-45.
[23] T 2-17, ll 22-23.
[24] Exhibits 23 and 24.
[25] T 2-67, l 43 – T 2-68, l 9.
[26] T 2-67, ll 37-41.
[27] Groos v WorkCover Queensland [2008] QIC 52; 165 QGIG 106.
[28] T 2-17, ll 25-35.
[29] T 2-19, l 39 – T 1-20, l 7; T 2-21, ll 1-24.
[30] T 2-44, l 35 – T 2-45 l 5; T 2-47 ll 18-45.
[31] T 4-32, ll 14-36; T 4-33, l 20; T 4-34, ll 29-45; T 4-36, l 20.
[32] See Exhibits 8, 15, and 18.
[33] [2017] QIRC 88.
[34] There was extensive cross examination about these messages and images which was, in my view, entirely unnecessary and, I suspect, merely ventilated to publicly embarrass Mr Wetheral. It served no forensic purpose and did nothing to advance Ms Kelly’s appeal.
[35] T 1-73, l 6 – T 1-74 l 9.
[36] T 4-27, ll 43-47; T 4-61 ll 1-10 – Curiously this allegation was not put to Ms Kelly.
[37] T 1-47, ll 8-13.
[38] T 1-73, l 6 – T 1-74 l 9 ; T 2-40, l 18- T 2-41, l 19.
[39] T 4-4, l 12-20 – T 4-8, l 20-40.
[40] Exhibits 7, 16 and 19.
[41] T 4-45 ll 10-15; T 4-51 ll 40-47.
[42] T 4-45 ll 15-20.
[43] T 4-52 ll 40-45.
[44] T 4-45; T 4-53.
[45] Exhibits 7, 16 and 19.
[46] T 4-79 ll 25-40.
[47] T 2-15 ll 5-20.
[48] Kiesouw v Workers' Compensation Regulator [2017] QIRC 064 at [14]; Nichols v Workers' Compensation Regulator [2017] QIRC 111 at [10]; Tuesley v Workers' Compensation Regulator [2021] QIRC 071.
[49] Exhibit 6.
[50] Exhibit 6.
[51] Ms Kelly gave evidence about a distressing police raid on her home where QPS officers executed a search warrant related to these matters.
[52] T 1-38, ll 16-47.
[53] T 1-40, ll 23-37.
[54] T 1-41, ll 6-21.
[55] T 1-41 ll 21-46. T1-24, ll 1-7.
[56] T 1-38, l 1 – T 1-39, l 16.
[57] T 1-35, ll 22-45; T 1-36, ll 44-47; T 1-37, ll 9-13.
[58] Exhibit 6.
[59] Exhibit 5.


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