On 15 March 2011, a Melbourne Magistrate overturned a decision to reject a stressed community services sector worker's claim for compensation. We assisted the worker in the Court proceedings.

The worker submitted a claim for compensation in respect of her psychological injury. The claim was rejected on the basis that her stress had been caused wholly or predominately by disciplinary action taken by the employer and that the action was reasonable and had been taken in a reasonable manner. The worker issued court proceedings in respect of the rejected claim.

The Magistrate found the worker had sustained an injury as a result of the stressful incident which pre-dated any disciplinary action taken by her employer. His Honour also found the employer's action to dismiss the worker was not taken in a reasonable manner and was in fact, patently unreasonable as the employer had terminated her employment without consideration of her detailed response to the allegations raised against her.

The Magistrate found that the worker was incapacitated for work by reason of her work related injuries and was entitled to weekly payments (wages) and medical expenses.