Breach of employment contract causing mental injury compensable in Australia

Dec 12, 2024 23:35

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Breach of employment contract causing mental injury compensable in Australia

The High Court of Australia has reinstated a AUS$1.4 million (US$900m) award of damages to an employee who was summarily dismissed in breach of the employer’s binding grievance procedures. In doing so, the court reversed the well-understood 115-year-old position that damages for psychiatric injury are not recoverable by an employee for an employer’s breach of the employment contract.

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Breach of employment contract causing mental injury compensable in Australia