Jeffery v Lintipal Pty Ltd

The appeal concerned a dispute over workers' compensation entitlement, specifically regarding a psychological injury. The appellant, Jeffery, sought compensation from the respondent, Lintipal Pty Ltd, for a psychological injury allegedly caused by a transfer. The matter came before the Supreme Court of New South Wales, Court of Appeal, after a decision by Deputy President Roche of the Workers Compensation Commission.

The primary legal issue before the Court of Appeal was whether the Deputy President had erred in law in determining that no compensation was payable under section 11A of the *Workers Compensation Act 1987* (NSW). This section excludes compensation for psychological injury caused by "reasonable action taken or proposed to be taken by or on behalf of the employer". The appellant contended that the Deputy President had erred by considering the employer's contractual obligation to follow the direction of an education authority when assessing the reasonableness of the transfer, arguing that this amounted to contracting out of the employer's obligations under the *Workplace Injury Management and Workers Compensation Act 1998* (NSW).

The Court of Appeal found that the Deputy President had erred in law. While acknowledging that the test for reasonableness under section 11A is objective, the Court held that the Deputy President's reasoning had been unduly influenced by the employer's contractual obligations to a third party. The Court emphasised that section 234 of the *Workplace Injury Management and Workers Compensation Act 1998* (NSW) prohibits contracting out of the Act's provisions, meaning an employer cannot rely on contractual duties to justify actions that would otherwise be unreasonable or lead to a breach of its workers' compensation obligations.

The Court of Appeal allowed the appeal, set aside the decision of Deputy President Roche, and remitted the employer's appeal to the Workers Compensation Commission for further consideration according to law. The respondent was ordered to pay the appellant's costs of the proceedings in the Court of Appeal.