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Requiring an employee to adhere to her performance improvement plan "to the letter" was "so lacking in fairness and flexibility" that it wasn't objectively reasonable, a commission has ruled in psychological injury proceedings.

It appeared the employer could "improvise flexibility" around the PIP for its own purposes, but not for the employee, NSW Personal Injury Commission Member Jeffrey Gabriel said.

The trade activation and marketing manager, for international beverage company DBG (Australia) Pty Ltd, sought workers' compensation for an adjustment disorder with mixed anxiety and depressed mood, which she claimed was caused by workplace bullying.

The employer's insurer denied liability. It accepted she had sustained a work-related injury, but considered it was the result of reasonable actions with respect to performance appraisal...