Definition

Reasonable Management Action (Workers’ Compensation)

Reasonable management action (or reasonable administrative action) is an objective statutory test found in workers’ compensation legislation throughout Australia that requires management to make decisions reasonably and to undertake the following processes in a reasonable way:

employment transfer;
demotion;
disciplinary action;
redeployment; and
dismissal.

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When might work-related stress result in a workers’ compensation claim?

A worker may make a workers’ compensation claim if they cannot work due to a work-related stress condition.
When is psychological injury not compensable?

Psychological injury caused by reasonable management action is not compensable under workers’ compensation legislation.
What is reasonable management action?

Management action may be interpreted as bullying, so it's important to undertake management action reasonably.