The Case

In June 2007, Ms Eaton commenced employment with Tri Care (Country) Pty Ltd (Tri Care), an aged care provider, as an administrative assistant. Ms Eaton initially enjoyed her work and was described as a “bright and bubbly” person.

From 2009, Ms Eaton worked under Ms Harrison, a new manager who mistreated her. The mistreatment involved communications that were described as “offensive, intimidating, humiliating and threatening”. Ms Eaton did not cope and was often seen crying and with trembling hands. Ms Eaton resigned in March 2010 when Ms Harrison screamed at her for taking a message for a patient.

Thereafter, Ms Eaton was unable to work due to ongoing depression and anxiety.

Ms Eaton commenced proceedings against Tri Care in the Brisbane District Court, claiming damages of $587,869. Ms Eaton claimed that Tri Care was:

• vicariously liable for Ms Harrison’s conduct;
• negligent in failing to protect her from the misconduct; and
• liable for failing to address her complaints.

The Verdict

The District Court held that Tri Care was not vicariously liable, and did not owe a duty of care to Ms Eaton. However, this was overturned on appeal.

The Queensland Court of Appeal held that Tri Care owed a non-delegable duty of care to Ms Eaton and there was a reasonably foreseeable risk to Ms Eaton’s health in the circumstances.

The Court of Appeal indicated that “there was more than a far-fetched or fanciful risk that [she] would suffer a psychiatric illness without the exercise of reasonable care by her employer to avoid or minimise her stressful experiences in the workplace”.

Tri Care breached its duty of care and was held vicariously liable for the manager’s mistreatment of Ms Eaton, which resulted in her suffering a psychiatric injury. Given Ms Eaton’s inability to work, she was awarded damages for future economic loss of $435,583.

The Lesson

You have a statutory duty under health and safety legislation to ensure the physical and psychological safety of your employees. There are also anti-bullying laws under the Fair Work Act 2009 (Cth) to protect employees.

You must put preventative measures in place, such as workplace policies, and educate and train employees to reduce the risk of them engaging in inappropriate behaviour.

You must also act if any employee engages in behaviour that could potentially harm another employee. This means you must investigate any complaints and take appropriate action against an employee if you find they have been involved in misconduct towards another employee.

Please note: Case law is reported as correct and current at time of publishing. Be aware that cases in lower courts may be appealed and decisions subsequently overturned.