Undag v Bupa Care Services Pty Ltd

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WORKERS COMPENSATION COMMISSION
DETERMINATION OF APPEAL AGAINST A DECISION OF THE COMMISSION CONSTITUTED BY AN ARBITRATOR
CITATION: Undag v Bupa Care Services Pty Ltd [2014] NSWWCCPD 67
APPELLANT: Eunise Undag
RESPONDENT: Bupa Care Services Pty Ltd
INSURER: Employers Mutual NSW Ltd
FILE NUMBER: A1-7957/13
ARBITRATOR: Mr P Sweeney
DATE OF ARBITRATOR’S DECISION: 15 July 2014
DATE OF APPEAL DECISION: 14 October 2014
SUBJECT MATTER OF DECISION: Psychological injury; s 11A of the Workers Compensation Act 1987; reasonable action with respect to discipline; whether suspending worker and reporting alleged assault to the police reasonable; principles in University of Wollongong v Metwally(No 2) [1985] HCA 28; 59 ALJR 481 and Brambles Industries Ltd v Bell [2010] NSWCA 162 discussed and applied; failure to comply with Practice Direction No 6; attempt to conduct appeal as rehearing; need to establish error
PRESIDENTIAL MEMBER: Deputy President Bill Roche
HEARING: On the papers
REPRESENTATION: Appellant: Santone Lawyers
Respondent: Moray & Agnew
ORDERS MADE ON APPEAL:

1.     The Arbitrator’s determination of 15 July 2014 is confirmed.

2.     No order as to costs.

INTRODUCTION

  1. This appeal concerns the application of s 11A of the Workers Compensation Act 1987 (the 1987 Act). In particular, it concerns whether an Arbitrator erred in finding that the employer’s actions in suspending a worker, pending investigation into an alleged assault, and reporting the incident to the police, were reasonable.

BACKGROUND

  1. The appellant worker, Eunise Undag, started work for the respondent employer, Bupa Care Services Pty Ltd, as an assistant in nursing at its aged care facility at Dural, on 28 May 2004.

  2. On 28 June 2013, the respondent’s general manager, Justine Reefman, received a complaint from the daughter of a resident that, about 12 months earlier, a member of staff had struck her mother, who suffers from dementia, on the bottom. Ms Reefman sought advice from the respondent’s “reportable team” and was told that as there was “an allegation of physical assault” the process of reporting to the police and the department (of aged care) needed to commence and that the staff member who allegedly struck the resident was to be suspended pending an investigation.

  3. The nurse who allegedly witnessed the incident identified Ms Undag as the nurse who was the subject of the complaint.

  4. At about 5.42 pm on 28 June 2013, Ms Reefman summoned Ms Undag to her office and, in the presence of another member of staff, informed her of the allegations. Ms Undag denied any wrongdoing. Ms Reefman suspended Ms Undag, on full pay, pending an investigation and asked her to leave the premises. Ms Reefman told Ms Undag that, as part of the process, the matter would be reported to the police who may contact her.

  5. Also on 28 June 2013, presumably after the meeting with Ms Undag, Ms Reefman contacted the Castle Hill Police Station and was told that, because of the time since the alleged incident, they would not be taking any action.

  6. Ms Undag’s version of the meeting with Ms Reefman was that…

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Details
Case
[2014] NSWWCCPD 67
Decision Date

CaseChat Overview and Summary

Undag has brought an appeal against the decision of an Arbitrator who rejected a claim for workers' compensation for psychological injury. The dispute concerns the actions of Bupa Care Services Pty Ltd, Undag's employer, in suspending Undag and reporting an alleged assault to the police. The Arbitrator found that Bupa's actions were reasonable and thus, Undag's claim for compensation was rejected. The appeal was heard in the NSW Civil and Administrative Tribunal.

The key legal issues in this appeal revolve around whether Bupa's actions in suspending Undag and reporting the alleged assault were reasonable. The court was required to consider the relevant provisions of the Workers Compensation Act 1987, specifically section 11A, which excludes compensation for psychological injury where the employer's actions were reasonable in the circumstances. The appeal hinged on whether the Arbitrator correctly applied the principles set out in University of Wollongong v Metwally and Brambles Industries Ltd v Bell to determine what constitutes reasonable action with respect to discipline.

The tribunal found that the Arbitrator's decision was correct. It was determined that Bupa's actions were reasonable in the context of workplace discipline and the handling of an alleged assault. The tribunal found that the appeal did not establish any error on the part of the Arbitrator. The tribunal also noted that the appeal was not a rehearing of the matter and that the appellant had not demonstrated that the Arbitrator made an error in the application of the law or in the assessment of the evidence.

The final orders of the tribunal were to confirm the Arbitrator's determination and to make no order as to costs. This decision reinforces the principle that an employer's reasonable disciplinary action, including reporting an alleged serious incident to the police, can exclude a claim for psychological injury under workers' compensation.

Orders

Orders of the court

1. The Arbitrator’s determination of 15 July 2014 is confirmed.

2. No order as to costs.

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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