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An employer is liable for a long-serving employee's psychological injury, after its poor communication about a restructure meant she found out about her demotion by chance.

NSW Personal Injury Commission Member Carolyn Rimmer found the employer had unreasonably assumed the relevant union delegates would inform the employee of the proposed changes to her roster, and so it never directly consulted with her.

The team facilitator for Freshfood Management Services sought weekly benefits and medical expenses for a work-related adjustment disorder, but the employer denied liability on the basis her injury arose from reasonable action with respect to demotion...