Psychiatric injury

Associate solicitor Amanda Robinson acted on behalf of a client who was subjected to workplace bullying and unrealistic expectations resulting in a deterioration of her health and psychological / psychiatric injury.

Our client has kindly allowed us to share her story. Pseudonyms have been used to maintain the confidence of all parties.

Angelina began working as a spa manager in an exclusive spa situated within a large hotel in NSW early in 2016. She was to report to the general manager.

She was excited for the challenge after running her own beauty therapy business for a number of years. Unfortunately, the excitement did not last.

On starting at the Spa, Angelina was not provided with an induction or any training aside from the wife of the general manager showing her around.

The spa was open 7 days a week, with the weekends being the busiest times frequented by large numbers of tourists. She was required to manage all staff including rostering, order all supplies for the spa, respond to emails, liaise with sales reps and attend to payroll.

Angelina worked Tuesday to Sunday and soon realised that in order to keep up with the work demands, she needed to work 10 to 13-hour days as there were not enough staff for the workload required. Whilst she managed her own hours, she never took lunch breaks as most days she had to cover for other staff while they took their breaks.

After 6 months, Angelina approached her managers and requested a second in charge be hired to help her run the spa. The other sections of the hotel all had a second in charge. Nothing was done.

Angelina was responsible for financial records of the Spa and knew how much money the Spa made on a monthly basis. However, the finance manager’s reports never matched those of Angelina, generally indicating lower figures than she had. When she asked why there was a discrepancy, the finance manager, instead of explaining the discrepancies would get angry and blame her.

Another problem Angelina had to deal with was that the general manager’s wife regularly attended the Spa with friends, providing them with free or discounted services and beverages whilst disrupting already booked appointments requiring staff to be reallocated ad hoc.

She was required to participate in a weekly management meeting where she was critically questioned in front of other staff. For instance, the expected profit of the Spa was increased annually and Angelina was not allowed to hire additional staff to help her reach those profit expectations. She was then asked repeatedly at weekly meetings why she was not making the expected profits.

Eventually after more than 12 months, the Spa finally hired a second in charge to help Angelina. Unfortunately, this person did not perform the duties of a second in charge and simply acted as the Spa receptionist. Angelina, instead of having her workload reduced, then had to take on the work the second in charge failed to do.

In an effort to increase profits, Angelina asked if she could hire a hairdresser for the Spa, especially when the Hotel was hosting weddings. The Spa had previously had both a full time and casual hairdresser. Angelina’s managers would only agree to allow her to engage a hairdresser if they paid their own chair hire and worked only on a Sunday.

Throughout this time Angelina was constantly suggesting ways to improve the Spa and was always shut down and instead questioned as to why the Spa was not reaching their profit expectations. Angelina was finding that even after working 10-13 hours a day, she had to take work home with her as well.

As a result of the increasing hours, inability to hire staff, unrealistic profit expectations and constant questioning, Angelina began to feel very anxious and stressed. She felt she had no-one at work to talk to. She began taking a lot of sick leave and annual leave. However, she kept returning to work in the hopes that things would improve.

The final straw occurred when Angelina was asked by the general manager to sell a piece of Spa equipment they no longer used. Angelina listed the equipment for sale. During this time the general manager resigned. Angelina sold the equipment and was subsequently heavily criticized by the finance manager who then threatened to report the issue to the Hotel’s owners.

Angelina broke down in tears and was told to go home. Thankfully Angelina went to see her GP that day and began receiving treatment for the psychological / psychiatric injury she had developed. Angelina lodged a workers compensation claim on the Spa. The Spa referred the matter to their insurer who started paying weekly payments of compensation and paid for her medical treatment.

Despite extensive treatment, Angelina was unable to return to the person she was prior to working at the Spa. Angelina sought legal advice from Amanda Robinson and was advised she could investigate a claim for lump sum compensation as a result of the permanent impairment she had suffered. Amanda applied for legal assistance funding from WIRO, obtained her clinical notes and organised for her to be examined by a WorkCover approved Psychiatrist.

The Psychiatrist determined her level of impairment was over 15%. Angelina then made a claim for lump sum compensation. The insurer for the Spa accepted her level of impairment and paid her lump sum compensation totalling almost $60,000.

As Angelina’s impairment was over 15%, she is entitled to make a work injury damages claim. This claim is underway.