Legislation update by Squire Patton Boggs

The High Court of Australia has moved away from the longstanding view that psychiatric injury caused by the breach of an employment contract is not compensable. The case of Elisha v Vision Australia Limited [2024] confirms that an employer may be liable for psychiatric injury caused by a breach of contract. In this case, the employee was awarded damages of $1.45m for lost earnings and for pain and suffering.

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