The High Court of Australia in Elisha v Vision Australia Limited is set to consider whether damages maybe awarded for psychiatric injury resulting from the breach of an employment contract. At the same time the Court will consider whether an employer owes a common law duty of care to take reasonable care to avoid injury to the employee in its implementation of the processes leading to and resulting in the termination of employment.

If Mr Elisha is successful the Court will overturn the long standing common law position that shock, distress or humiliation resulting from the dismissal is not compensable (Addis v Gramophone Co Ltd [1909] AC 488 and Baltic Shipping Co v Dillon (1993) 176 CLR 344)

We will post an update once the Court delivers its judgment.