Fairall and Comcare (Compensation)

This matter concerned an appeal by Ms Fairall against a decision by Comcare to deny compensation for a psychological injury. The dispute centred on whether Ms Fairall suffered a compensable injury, specifically an adjustment disorder, on or about 22 March 2017, arising from a meeting held on 21 March 2017 concerning her request for overtime work. The case was heard by Deputy J W Constance P of the Administrative Appeals Tribunal.

The primary legal issues before the Tribunal were whether Ms Fairall suffered a compensable psychological injury pursuant to section 14 of the *Safety, Rehabilitation and Compensation Act 1988* (Cth) for a limited period on or about 22 March 2017, and if so, whether Comcare should be ordered to pay Ms Fairall’s costs of the Tribunal proceedings in respect of that alleged injury. These issues were remitted to the Tribunal by the Federal Court of Australia for reconsideration.

The Tribunal considered whether the action of informing Ms Fairall of the decision to refuse her overtime at the meeting constituted "administrative action...in respect of" her employment, and if so, whether that action was reasonable and taken in a reasonable manner. Comcare conceded that the communication of the decision contributed significantly to Ms Fairall’s adjustment disorder. The Tribunal found that informing Ms Fairall of the decision was administrative action in respect of her employment, as it related to the terms of her engagement and her duties. The Tribunal also found that there was no evidence to suggest the manner in which the meeting was conducted was unreasonable, and that the decision to deny overtime was based on operational requirements related to skill sets.

The Tribunal affirmed the reviewable decision. It found that while Comcare conceded the meeting contributed to Ms Fairall's adjustment disorder, the action of informing her of the decision was administrative action taken in a reasonable manner. Therefore, Ms Fairall did not suffer a compensable injury under section 14 of the Act in relation to this specific event.