HR Heartbeat: Reforming Workers’ Comp, Job Ad Confusion, and…

Welcome to HR Heartbeat, where we look at the week’s most pressing HR and employment relations stories. With over 20 years’ experience in professional services, I give my opinion on current trends impacting your business, as well as my own personal commentary on all things HR and employment relations.

Reforming workers’ comp: modernising for mental health The NSW government is now recognising that our workplaces aren’t just faced with physical risks anymore. In a bold move, reforms are underway to overhaul the state’s workers’ compensation system—a system that, quite frankly, was designed for an era of manual labour rather than office work or service industries. With psychological injury claims now making up only 12% of total claims but a staggering 38% of the overall cost, it’s clear that the old model just isn’t fit for purpose.

Treasurer Daniel Mookhey has outlined a series of changes that include giving the Industrial Relations Commission jurisdiction over bullying and harassment cases and providing clearer definitions of psychological injury and “reasonable management action.” In essence, these reforms aim to provide much-needed certainty for both employees and employers while tackling a system that’s rapidly becoming unsustainable. For any business owner, this is a timely reminder to ensure your policies are as modern as your workforce.

Job ad confusion: when recruiting sends mixed signals Next up is a case that underlines just how easily miscommunication can spark major workplace drama. A lone physiotherapist discovered a job advertisement on a popular job board that appeared to be for his own role. The timing couldn’t have been worse—coming right after a tense meeting about workplace issues. Naturally, he assumed that his role was on the chopping block. However, the employer maintained that the ad was merely part of routine recruitment and not an indication of his impending dismissal.

The Fair Work Commission wasn’t entirely convinced that this constituted a dismissal, highlighting the importance of clarity in all communications. As business owners, we need to be proactive and explicit when managing internal changes. Ambiguity in job postings or internal messages can lead to confusion and, ultimately, costly disputes. My advice? Make sure that your intentions are communicated as clearly as possible—after all, clarity is the antidote to misunderstanding.

Sudden dismissals and performance management: getting it right Finally, let’s talk about a case that really struck a nerve. An employee resigned with two weeks’ notice, only to be summarily dismissed on the same day by his employer. The reasoning? Alleged “serious misconduct,” despite no formal warning or performance improvement plan having been implemented. The Fair Work Commission (FWC) ruled that this swift action was unfair, as it deprived the worker of his rightful notice period and associated benefits.

And it’s hard to see this as anything but an act of retaliation and pettiness from the employer. Even if you have genuine concerns about an employee’s performance, you can’t suddenly sack them after they’ve already resigned with no warning. Trust me—the FWC won’t see it any other way either.

For navigating genuine performance management complexities in your business, look into Performance Management Software.

And that’s a wrap from me. Tune in next time for my take on the latest headlines and employment law stories, helping keep your business ahead!