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.
