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After abandoning its own disciplinary policy and prematurely deciding an employee was guilty of misconduct, an employer couldn't argue its "reasonable action" was the predominant cause of her psychological injury.

Rejecting its defence to the employee's claim for workers' compensation, NSW Personal Injury Commission Member Adam Halstead also found the employer used "alarming and intimidatory" behaviour to try and coerce her into resigning.

He heard that in May last year, the Results Laser Clinics employee was accused of serious misconduct, in the form of working on her own business during shifts for the employer.

A payroll officer gave evidence that she held a meeting with the employee after the CEO said the misconduct was captured on CCTV cameras...