Incorporating disciplinary policies into employment contracts can increase liability if they’re not followed
BY Megan Kavanagh, Ebony Faulkner, and Steven Reynolds 28 May 2025
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The case of Elisha v. Vision Australia Ltd [2024] HCA 50, highlights the importance of employers being mindful of the psychiatric impact of dismissals on their employees and adhering to company policies when disciplining them. This article aims to offer guidance on mitigating an employer's potential liability during the disciplinary process.
For over a century lawyers have observed the Addis v. Gramophone Co Ltd [1909] AC 488 precedent. Addis established that damages for psychiatric injury caused by wrongful dismissals were not available. However, the recent High Court decision in Elisha overturned this longstanding principle.
Adam Elisha was employed as an adaptive technology consultant by Vision Australia Limited from 2006 to 2015. In early 2015, Elisha allegedly acted aggressively toward a hotel employee during a work trip. Following Vision Australia's investigation of the incident, Elisha was presented with a letter directing him to stand down and attend a meeting to respond to a complaint regarding his alleged misconduct at the hotel.
During the meeting, Elisha denied the allegations, claiming he never behaved aggressively toward the hotel employee. Internally, Vision Australia favoured the hotel employee's accounts relying on a pattern of aggressive behaviour that had been mentioned by...
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