Poor Management Can Create Psychosocial Hazards

The Fair Work Commission has recently dismissed an application for unfair dismissal from a manager whose employment was terminated for conduct that created what was found to be an unsafe psychosocial work environment for her team.

The manager had been employed less than a year when the employer became aware of issues around her treatment of staff. This included putting in place an unauthorised "points system" for employees, repeatedly criticised team members as lazy and routinely spoke to staff in an abrupt, rude and confrontational manner.

Two employees had resigned and two other employees indicated they were about to resign. Several employees had reported feeling anxious, increasing their medication, while others sought medical treatment.

After an investigation by the employer, it was found that the manager had created an unsafe psychosocial environment. The Commission found that the employer had a valid reason for the dismissal and had followed the correct procedures. The application for unfair dismissal was rejected.

This decision highlights the increasing intersection between psychosocial safety obligations and performance management.

Once the employer became aware of the risks to employees and the effect on their mental health they were entitled to act and had an obligation to do so.

It is important for employers to ensure that their managers are managing staff properly and not creating psychosocial risks to employees. Achieving results is one thing, but it is important that employees are treated fairly and without risk to their mental health.