Psychological Injuries Hurt Organizations Too!

In many jurisdictions, legislation makes worker'sshould not have been liable, and
compensation provisions for people who suffer· that it is an abdication of legislative
psychological injuries as a result of their employment.responsibility to ensure the claim is valid.
Stress, traumatic events, workloads, harassment,Let's look at both those arguments in turn.
pre-existing mental disorders or a whole range ofThe Cost of Accepting Unproven Liability
other possible factors may give rise to aInjury prevention and injury management is about
compensable psychological injury.the management of risk. Any process that helps to
Interestingly, psychological injuries may be a sequelamaintain goodwill between the employer and
(i.e. consequence of) of physical injuries which resultemployee creates opportunity to limit time off work
in time off work. Over an extended period, theand long-term psychological injury costs (i.e. reduces
injured worker may come to feel isolated andrisk to the employer). Per injury, psychological injuries
disenfranchised by the workplace, especially if theare by far the most expensive. Adversarial
injury management process is not effectivelyproceedings force both parties into defensive
designed and implemented. There are also instancespositions, from which any gains are small, incremental
where it appears that physical injuries provide anand notoriously slow. This adds up to significant long
"escape hatch" from the pressures of the job and asterm salary burdens (i.e. significantly increased risk).
the worker experiences relief from being away fromThe very few psychological injuries that are
the workplace there is a growing resistance to returnunsupported as a result of a professional assessment
to work. Under these circumstances, psychological(and injured workers usually get to choose their
factors may be cited as a reason to delay a returnhealth provider) would be miniscule by comparison. It
to work.should also be noted that in many countries, industrial
Responses to any compensable injury resulting incourts operate in such a way, that it is incumbent on
time off work must be timely, effective and activelythe employer to disprove the validity of a claim,
engage the worker in a planned return to work.rather than the employee proving their case.
Workers are entitled to assurance that the risk of aLegislative Requirements to Assess Claims
recurrence or worsening of their injury is addressedClearly there is a broad range of legislation across
appropriately, whether the injury is physical ordifferent jurisdictions and this article cannot presume
psychological.to adequately address all variations. However, most
Claims Management - A Tool or a Weapon?legislation makes provisions for accepted or rejected
The irony, in many jurisdictions, is that injuryclaims on the basis of available evidence (including the
management practices often focus on verification ofworker's report of the injury). A closed period
the worker's compensation claim. Verification of theacceptance allows for the further gathering of sound
injury, diagnoses, treatments and the workerevidence to support a final determination, consistent
capacity to undertake pre-injury or alternative duties.with much legislation around the world. When the
Combined with a "process" mentality amongst manyprofessional assessment is made, the final
injury management personnel it is not hard to seedetermination will include consideration of this
why worker's compensation claims provide fertileassessment. Injury management practitioners often
ground for adversarial negotiations.fear that closed period determinations set a
Many injured workers report feelings of beingprecedent that will prove a stumbling block in any
disbelieved and isolated by the legal andfuture legal action. However, I again make the point
administrative processes around their claims. Ofthat industrial courts very often place the onus on
course, claims managers quickly point out endlessemployers to disprove a claim, regardless of the initial
examples of worker's compensation provisions beingdetermination.
shamelessly exploited. Both sides of the processWhen Not to Use Closed Period Determinations
continue to feel justified in their antagonism to theLegislation will often prescribe circumstances in which
other.psychological injury claims will not be accepted. An
These dynamics are tricky enough in the context ofexample of such circumstances might be where the
physical injuries. However, with regard toemployee is facing a disciplinary process prior to
psychological injuries, the treatment is potentiallylodging a claim, or where the claim arises from
worse than the illness. Many of the factors leading to"reasonable management action" (e.g. such as giving a
psychological injury have disregard for the worker,legitimate direction to undertake work or undertake
harassment, workload pressures, being undervaluedwork in a particular manner). Under these
or stress at the root. An adversarial approach to acircumstances it would be unwise to make a closed
worker with a psychological injury potentially adds toperiod determination in favour of the employee.
the worker's incapacity at a time when theirParticularly in the context of disciplinary action, a
emotional and mental reserves are at an all time low.closed period determination undermines the
Managing Claims Proactivelyemployer's ability to deal with the identified work
Far better for the organisational approach to berelated issues.
based on the premise of "we are here to help you"Reasonable management action" is open to some
get well". Of course, the employer has to complyinterpretation. An employer's definition may be quite
with relevant legislative and regulatory requirementsdifferent to that of an industrial court. This is why
and this does mean that verification activity needs toeffective injury prevention and consultative
occur. However, the critical element is about attitude.strategies are critical to the health of an organisation.
A positive and proactive response from injuryAny significant actions by management that have not
management staff is far more likely to engage thebeen effectively consulted, or are inconsistent with
worker in a willing return to work. Such an approachindustry standards/practice, place the organisation at
also gives the worker the opportunity to contributehigh risk of being held liable for consequent
to an identification of barriers that need to bepsychological injury. However, where the organisation
addressed in a "no-blame" context. Both employeesbelieves it can support the position that management
and employers have accountabilities in terms ofaction was reasonable and the psychological claim is
worker's compensation, but accountability should notunjustified, it would be imprudent to make a closed
be synonymous with mistrust.period determination in favour of the employee.
Psychiatric and/or psychological assessments areHaving said this, the many claims that arise from
notoriously difficult to obtain, resulting in delays ofharassment, intimidation, workload issues, conflict with
weeks or months before the injury is verified orcolleagues or management, traumatic events etc are
disconfirmed. During this period, the opportunities toclaims where the organisation may benefit from a
turn a moderate injury into a severe one are limitless!closed period determination.
Many organisations are now using a process knownIn Summary
as "closed period determinations" for claims that haveThis article addresses ways of managing psychological
a long lag time to diagnoses or are potentiallyinjury claims that reduces risk to both employees and
complex. A closed period determination essentiallyemployers. Health and financial risks are often created
says "you have reported a [psychological] injury.by distrust, adversarial negotiations and the effective
Whilst we undertake the assessment process weisolation of employees pursuing a claim. When
accept your claim for a period of [X weeks/months]psychological injury occurs, injury management
until a professional assessment can be provided topersonnel need to respond in a timely and proactive
the employer".manner, with a view to the quickest and safest
The closed period determination assists in reducingreturn to work for the employee. However,
the potential for exacerbating the injury and theremember that managing injury is an "after the fact"
distrust and isolation associated with the more usualprocess. Organisations should ensure effective
adversarial approach. Critics argue that:preventative strategies are embedded as a first
· the employer makes themselves liable forpriority.
costs that may turn out to be costs for which they