All Stories Heard: Court Rejects “Maladaptive Personality” Defence

In Fernandez v Australian Postal Corporation [2025] FCA 1144 the Federal Court quashed an Administrative Appeals Tribunal decision that had rejected a postal worker’s psychological injury claim on the basis of "maladaptive personality characteristics".

The worker, a former delivery driver unfit for work since May 2020 with an adjustment disorder, alleged he was bullied by colleagues and falsely accused by a superior in February 2020 of failing to collect parcels. He claimed the accusation was a retaliation linked to a workplace dispute.

The AAT preferred the evidence of the employer’s witnesses in finding his condition was not work related. But the Federal Court held the tribunal denied him procedural fairness by failing to properly assess his version of events and relying on witnesses who weren’t present at the key incident. The case was remitted to the ART for reconsideration, with costs awarded to the worker.

Our Take

We get that sometimes employers come under significant pressure from those within the workplace to remove a difficult employee. This leads to processes ‘looking’ for all the evidence that meets the employers ‘preferred narrative’. This case demonstrates a trend that Courts are wary to accept evidence that an employee is just difficult to work with without hearing the employee’s version of events or properly testing the veracity of all applicable witnesses.

Action Items:

• Document key incidents in detail – contemporaneous notes and records carry far more weight than retrospective witness statements.

• Prepare credible witnesses – ensure that those giving evidence actually observed the events in question.

• Treat psych injury claims seriously – don’t dismiss them as personality-driven without examining the workplace context and, if necessary, obtaining expert medical opinion.

• Audit your response procedures – confirm that managers and HR know how to handle bullying, discrimination and psychological injury claims in a procedurally fair way.

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