A Federal Court judge has ruled that a workplace tribunal failed to provide procedural fairness to a former Australia Post employee seeking compensation for psychological injury, ordering the case be reheard by a new tribunal.

The postal delivery worker, who has been unable to work since 2020 due to an adjustment disorder, had his compensation claim rejected by the now-defunct Administrative Appeals Tribunal. Justice Stephen McDonald found the tribunal’s decision-making process was fundamentally flawed.

The worker’s mental health deteriorated following workplace conflicts that reached a breaking point in February 2020. During a meeting with management, he was accused of failing to collect parcels from a distribution center – an allegation he firmly denied. The employee maintained he had completed all required collections and believed the accusation stemmed from workplace disputes and personal grievances, including his failure to acknowledge a supervisor’s partner.

The confrontation triggered what the worker described as a mental breakdown, leading to his medical certification as unfit for work from May 2020.

When the Administrative Appeals Tribunal rejected his total incapacity claim, the worker challenged the decision, arguing he was denied fair process. The tribunal had dismissed his account of events while preferring testimony from Australia Post witnesses.

Justice McDonald highlighted a critical flaw in the tribunal’s reasoning: two key witnesses whose evidence was favored weren’t even present during the crucial incidents in question. Despite this, the tribunal concluded the worker’s condition resulted from “maladaptive personality characteristics” rather than workplace factors.

The Federal Court found the tribunal failed to properly examine the worker’s version of events or make specific factual findings about the incidents described by various witnesses. This represented a denial of procedural fairness that undermined the entire decision.

The case has been sent to the Administrative Review Tribunal – which replaced the AAT in October 2024 – for fresh consideration, with the postal worker awarded legal costs.

The ruling reinforces the importance of tribunals thoroughly examining all evidence and witness accounts, particularly when determining causation in psychological injury claims.