Bailey and Comcare (Compensation)

This matter concerned an appeal by Jackie Bailey against a decision by Comcare regarding her entitlement to compensation under the *Safety, Rehabilitation and Compensation Act 1988* (Cth). The dispute centred on whether the Applicant suffered an aggravation of a psychological ailment, specifically an Adjustment Disorder with Anxiety, and whether this aggravation was contributed to, to a significant degree, by her employment. A key element of the case involved an assessment of whether certain administrative actions taken by the Applicant's employer were undertaken reasonably.

The legal issues before the Tribunal were whether the Applicant suffered from a mental ailment as defined by the Act, and if so, whether her employment contributed to the aggravation of that ailment to a "significant degree." This required the Tribunal to consider the meaning of "significant degree" as interpreted in light of amendments to the Act, which stipulated that a contribution must be "substantially more than material." Furthermore, the Tribunal had to determine if the administrative actions taken by the employer concerning the Applicant's Regular Hours Agreement were conducted reasonably, particularly in light of the Applicant's known psychological vulnerabilities.

The Tribunal found that the Applicant did suffer from a mental ailment, specifically an Adjustment Disorder with Anxiety, which had been aggravated during the period she was negotiating her Regular Hours Agreement. While acknowledging the Applicant's pre-existing psychological vulnerabilities and personality traits, the Tribunal concluded that the administrative actions taken by the employer were not reasonable. This unreasonableness stemmed from the manner in which meetings were conducted, the lack of adequate support and courtesy provided to the Applicant, and the failure to adequately address her concerns, despite her known psychological sensitivities. The Tribunal applied the principles established in *Comcare v Power*, emphasising that the "significant degree" test requires a contribution substantially greater than merely material, and involves an evaluative exercise.

Consequently, the Tribunal set aside the decision under review and substituted its own decision, finding Comcare liable to pay compensation to the Applicant under section 14 of the Act for the aggravation of her Adjustment Disorder with Anxiety.