When Feedback Crosses the Line

A recent decision in Wright v Findex (Aust) Pty Ltd [2025] shows just how easily performance conversations, especially in remote or hybrid settings, can go wrong when there’s no clear structure or support. In this case, a worker suffered a psychological injury after a series of aggressive and demeaning comments from his supervisor during Microsoft Teams meetings.

The Commission found the employer liable, ruling that the supervisor’s behaviour wasn’t part of a fair performance process and wasn’t even close to being reasonable.

At Risk Collective, we’re seeing more and more businesses take a closer look at how managers are equipped to lead safely—particularly when it comes to performance conversations, feedback, and other day-to-day interactions. This case shows how a manager’s behaviour, if unsupported by clear processes and training, can unintentionally create psychosocial risk. Educating leaders on appropriate conduct and building structured, fair systems is essential—not only for compliance but to genuinely protect people at work.

A quick recap of the case

The worker had recently stepped into a new national role following a redundancy. He received no job description, no key performance indicators, and no proper handover—his predecessor had even deleted all prior records.

Within months, he was subjected to a series of unstructured and hostile meetings with his supervisor over Teams. In one meeting, he was told in front of colleagues that he had a problem understanding basic tasks. In another, he was blindsided with a performance discussion and told, “I can’t believe you said you were going well in the role.” These encounters left him physically shaken and eventually unable to return to work.

The employer attempted to defend the claim under section 11A of the Workers Compensation Act 1987, arguing that the conduct was reasonable action related to performance management. The Personal Injury Commission disagreed. It found that there was no formal process, no support person present, no advance notice, and no evidence of performance goals or disciplinary structure. The conduct was found to be aggressive, deprecating, and objectively unreasonable.

The employer was ordered to pay weekly compensation and medical expenses.

What this case highlights

Beyond the compensation outcome, the case also demonstrates how poor leadership behaviours and lack of process can amount to a breach of Work Health and Safety (WHS) duties, particularly under psychosocial risk regulations.

The key risks in this case included:

• Poor role clarity

• High job demands

• Aggressive leadership behaviours

• Public criticism and humiliation

• Lack of notice or procedural fairness in performance discussions

• Poor support

These are all recognised psychosocial hazards—and under WHS laws, employers must eliminate or minimise these risks so far as reasonably practicable.

👉 This is also a great example of why P&C, WHS, and Workers’ Compensation teams need to work together. These aren’t isolated issues. When performance conversations go wrong, they don’t just affect engagement, they can become a WHS risk and, ultimately, a worker’s comp claim.

Bringing these functions together to identify psychosocial risks early, set clear expectations, and design better processes is essential to protecting both people and the business.

How Risk Collective is supporting employers

We’ve recently supported two employers to review their performance management frameworks through a WHS psychosocial lens, bringing together both P&C and WHS teams to look beyond policies and into real-world behaviours and risks.

This work included:

• Mapping performance processes to identify where psychosocial risks could emerge

• Strengthening the structure of performance discussions, including notice, support person options, and documentation

• Training managers on safe, respectful leadership behaviours during feedback and performance conversations

• Embedding practical support mechanisms such as escalation pathways, regular check-ins, and clearly communicated support structures available to workers

By involving both WHS and P&C functions, we helped these organisations take a joined-up approach to managing risk, one that not only reduces legal and insurance exposure but also builds safer and more accountable cultures.

And when claims do arise, our Injury Management team steps in early, working with insurers to develop proactive claims strategies that support the worker while protecting the business. This early intervention approach can make a significant difference to claim outcomes and long-term premium impact.

Risk Collective:

Bridging HR, WHS and Injury Management

If

you’re looking to strengthen how your business manages performance, from HR processes to WHS duties and workers’ compensation exposure, get in touch. We offer discovery calls to explore how we can help your team identify risks, support managers, and manage claims more effectively.