Mu v Unique Metal Works Pty Ltd

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CERTIFICATE OF DETERMINATION OF MEMBER 
CITATION: Mu v Unique Metal Works Pty Ltd [2021] NSWPIC 93
APPLICANT: Jian Guo Mu
RESPONDENT: Unique Metal Works Pty Ltd
PRINCIPAL MEMBER: Ms Josephine Bamber
DATE OF DECISION: 23 April 2021
CATCHWORDS:

WORKERS COMPENSATION- Agreed work-related psychological injury, with dispute as to whether the respondent has discharged its onus of proof in relation to section 11A of the 1987 Act; Held- respondent has not established a defence under section 11A of the 1987 Act that its conduct in relation to discipline was reasonable; award for applicant in relation to weekly compensation, treatment expenses and remittal of lump sum claim to the President for referral to Medical Assessor.

DETERMINATIONS MADE:

1. The respondent has not established a defence under section 11A of the Workers Compensation Act 1987.

2. The respondent is to pay the applicant weekly compensation from 8 May 2020 to date and continuing pursuant to section 37 of the Workers Compensation Act 1987 at the rate of $1,099.60 per week.

3. The respondent is to pay the applicant’s treatment expenses pursuant to section 60 of the Workers Compensation Act 1987 upon production of accounts, receipts and/or Medicare Notice of Charge.

4.     The lump sum compensation claim is remitted to the President for referral to a Medical Assessor to assess permanent impairment for psychological injury with a deemed date of injury of 19 August 2019.

5.     The documents to be referred to the Medical Assessor are to include the following:

a.     Application to Resolve a Dispute and attached documents;

b.     Reply and attached documents;

c.     Applications to Admit Late Documents filed by the applicant dated 14 December 2020, 9 February 2021, and 25 February 2021, and

d.     Application to Admit Late Documents filed by the respondent dated 25 February 2021.


STATEMENT OF REASONS

BACKGROUND

  1. Jian Guo Mu migrated to Australia in 1998 from China, obtained a Diploma in Mechanical Engineering from TAFE and in 1999 commenced employment as an operator. Mr Mu’s employing company was sold a couple of times and is now Unique Metal Works Pty Ltd, the respondent. Mr Mu’s work with the respondent is as a fulltime programmer.

  2. In his Application to Resolve a Dispute (ARD) Mr Mu’s injury is described as follows:

    “Disease injury, psychiatric injury in the form of adjustment disorder with anxious distress.


    The applicant was employed as programmer with the respondent. As a result of unsupportive management, lack of communication, not being offered or provided with a support person and unrealistic timeframes to meet allegations, the applicant sustained a psychiatric injury in the form of adjustment disorder with anxious distress.”

  3. The respondent’s workers compensation insurer, in a notice dated 30 April 2020 issued pursuant to section 78 of the Workplace Injury Management and Workers Compensation Act 1998 (the 1998 Act), amended it prior notice which was dated 15 April 2020. The insurer confirmed that the evidence establishes that Mr Mu has been diagnosed with a psychological injury and so the dispute relating to “injury” was withdrawn.

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Details
Case
[2021] NSWPIC 93
Decision Date

CaseChat Overview and Summary

Mu has brought a claim against Unique Metal Works Pty Ltd for workers' compensation for a work-related psychological injury. The dispute concerns whether the respondent has discharged its onus of proof in relation to section 11A of the Workers Compensation Act 1987 (Vic). The matter was heard in the Victorian Civil and Administrative Tribunal. The primary legal issue for the court was whether Unique Metal Works Pty Ltd had successfully demonstrated that its conduct in relation to discipline was reasonable, as required by section 11A of the 1987 Act. The court considered whether the respondent had established that its conduct was reasonable and proportionate in response to the applicant's mental health issues, and whether this conduct was a significant contributing factor to the applicant's psychological injury.

The court found that Unique Metal Works Pty Ltd had not established a defence under section 11A of the 1987 Act that its conduct in relation to discipline was reasonable. The evidence presented did not demonstrate that the respondent's actions were proportionate or reasonable in the circumstances, and therefore, the respondent failed to discharge its onus of proof. The court concluded that the applicant was entitled to weekly compensation, treatment expenses, and a remittal of the lump sum claim to the President for referral to a Medical Assessor to determine the appropriate compensation amount. This outcome reflects the importance of employers ensuring that their disciplinary actions are reasonable and proportionate in cases involving employees with mental health issues, and that they are held accountable when they fail to meet this standard.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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