The Case

During 2008 and 2009, the Maryborough office of Disability Services Queensland conducted an investigation into allegations of bullying and harassment against four managers. The investigation concluded that none of the allegations could be substantiated.

The four managers then commenced proceedings against their employer (the State of Queensland), alleging they had suffered psychiatric injuries because their employer had not adequately supported them. The managers claimed that their employer owed them a duty of care during the investigation process and had breached this duty.

The Verdict

At first instance, the District Court dismissed the matter, ruling that the employer had no such duty of care. The managers appealed to the Court of Appeal.

The Court of Appeal held that the duty of care arose where it was reasonably foreseeable that an employee may suffer psychiatric injury. The Court found that the risk of injury was foreseeable in this case because by the time the matter was investigated in 2009, there had already been earlier allegations in 2008, meaning the investigation was going to be substantial. It was also foreseeable that a psychiatric injury could occur if the managers were not supported. Additionally, the employer was large and sophisticated, and had the means to provide assistance.

The employer had provided access to a free employee counselling service, but no other form of assistance. It had required three of the managers to work with the complainants in circumstances in which they were made to feel uncomfortable, stressed and isolated. They were removed from their roles and given little work.

The Court found that these three managers were owed a duty of care by their employer and the employer had breached that duty. It found the duty of care was not breached to the fourth manager, who was moved to another area at her request and hence had limited contact with the complainants.

Despite finding a duty of care was owed, the Court found the employer’s breach of its duty of care did not cause the managers’ psychiatric injuries.

The Lesson

It is important when conducting investigations to ensure you provide support to both the complainant and the persons against whom the allegations are made. Consider what steps you can take to minimise the stress to the parties involved.

Access to an employee assistance program alone is insufficient. If possible, try to ensure the parties are not required to work together until the matter is properly investigated and resolved. This will help reduce the tension and anxiety associated with the process.

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.