Big damages for workplace bullying

Excerpts from this article first published in ‘Human Resources’ Magazine,
Issue 102, 18 April 2006

A recent case of workplace bullying has highlighted the importance of
employers ensuring the health, welfare and safety of employees and other
persons in the employer’s workplace.

A former employee of Group 4 Securities Pty Ltd was recently awarded $1.9
million in damages for a psychiatric illness caused by workplace bullying.

Mr Naidu, a security guard and employee of Group 4, was contracted to
provide security services to Nationwide News Ltd. Whilst performing this
work, Mr Naidu was directly supervised by Nationwide staff and in particular,
Nationwide’s Security and Fire Manager, Mr Chaloner.

Mr Naidu was subjected to workplace bullying by Mr Chaloner, which included,
amongst other things, racial abuse, threats of violence, verbal abuse, intimidation,
humiliation, excessive hours and excessive workloads.

The Court found that both Group 4 and Nationwide had a duty of care to provide
Mr Naidu with a safe workplace and that both companies had breached this duty.

As such, both companies were found to be liable for Mr Naidu’s injuries. The Court
held that as Mr Chaloner was an employee of Nationwide, the Company bore
responsibility for Mr Chaloner’s conduct.

The Court held that Group 4 had also breached its contract of employment with
Mr Naidu. The Court held that it was an implied term of Mr Naidu’s contract of
employment with Group 4 that he not be subjected to workplace bullying in the
course of his employment. The Court found that Group 4 had breached this
implied term because, amongst other things, Group 4 were aware Mr Chaloner
used intimidation toward staff and were aware of incidents of unacceptable
behaviour by him. As such, Group 4 was aware or should have made inquiries
as to whether Mr Naidu’s health was at risk in working with Mr Chaloner.
Having failed to make this inquiry, Group 4 was responsible for Mr Naidu’s injuries.

This case demonstrates the importance for labour hire employers to ensure the
health, welfare and safety of its employees at work at all times (including when
at host employer sites) and that this duty cannot be delegated to the host employer.

Host employers also have a duty to ensure the health, welfare and safety of
contractors they engage to perform work at their workplace. As such, organisations
need to take a proactive approach to ensure that they have workplace bullying and
harassment policies in place, that all workplace participants are aware of their
obligations under these policies, and that adherence with the policies is monitored
and reviewed on a regular basis.

Kelly Godfrey
Senior Associate
Australian Business Lawyers