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Meetings to address interpersonal conflict led an employee to believe she was being bullied, a commission has ruled, in rejecting this perception was part of her "delusional" thought processes.

NSW Personal Injury Commission Member Michael Wright found the employee had a "complex psychiatric background", with doctors noting she lacked insight into her condition. But this didn't mean she had deliberately provided false evidence, he said.

The disability support worker stopped working for the Cerebral Palsy Alliance in April 2023, following a meeting with her supervisor that culminated in a panic attack. She subsequently sought compensation for a psychological injury.

But the employer denied liability. It argued the employee had an "extensive history of delusional thoughts" and had made false statements about prior workplace difficulties...