High Court rules that ‘sham’ terminations can cause psychiatric injury, overturning century-old law In a momentous outcome for all workers, this week the High Court of Australia ruled in our client’s favour and reinstated a $1,442,405 damages verdict for breach of contract previously awarded by the Supreme Court of Victoria in December 2022. For well over 100 years, the common law courts have denied workers a right to recover damages for psychiatric injury suffered as a result of breach of contract on the basis that such damages were not available per the old English case of Addis v Gramophone Co Ltd [1909] AC 488. However, on 10 December 2024 the High Court of Australia delivered a landmark judgement in the matter of Elisha v Vision Australia Limited [2024] HCA 50, overturning this hundred-year law and thereby securing Arnold Thomas & Becker’s legal team a victory for all workers. It cannot be understated how much of a landmark decision this is in terms of an employer’s duty of care pertaining to their employees. Nick Korkliniewski, Senior Associate at Arnold Thomas & Becker, believes this sets a precedent for the “destigmatisation of psychological injury”. “In its simplest form, our client’s case was that his employer should have taken reasonable care and properly followed their own disciplinary procedures if they were to terminate his employment,” Mr Korkliniewski said. Read the full story on our blog. See more in the media. Contact us If you have been injured at work, we’re here to help with your compensation entitlements, and if you don’t win, there’s no fee. To speak to a lawyer for a confidential, no-obligation discussion, call us on 03 9034 8433 or email [email protected]