Fairbrother and Reserve Bank of Australia (Compensation)

This matter concerned an appeal by Ms Fairbrother against a decision of the Reserve Bank of Australia (the Bank) to reject her claim for compensation for a psychological injury. The dispute centred on whether Ms Fairbrother suffered an ailment or an aggravation of an ailment, and if so, whether this was contributed to to a significant degree by her employment, and whether it resulted from administrative action taken in respect of her employment. The court was required to determine if the administrative action taken by the Bank was reasonable and if it was taken in a reasonable manner.

The court considered the evidence of Ms Fairbrother and other Bank staff, as well as medical reports from Dr Cannon and Associate Professor Robertson. The court found that Ms Fairbrother's bipolar condition and personality traits affected her perception of how she was treated by her employer, and that her beliefs about the conduct of those involved in her supervision were not always accurate. Conversely, the court was satisfied that the Bank's witnesses gave accurate evidence, sometimes supported by contemporaneous notes. The court accepted the medical opinions that a depressive episode suffered by Ms Fairbrother from June 2015 to February 2016 was significantly contributed to by her employment.

The court concluded that the administrative action taken by the Bank, specifically the commencement and maintenance of a Performance Improvement Plan (PIP) in respect of Ms Fairbrother, was the cause of her depressive episode. However, the court was satisfied that this administrative action was reasonable and was taken in a reasonable manner. Consequently, the decision under review, which rejected Ms Fairbrother's claim for compensation, was affirmed.