Work-related stress in Australia: The effects of legislative interventions and the cost of treatment

Abstract

The Australian Institute of Health and Welfare data published in 2002 shows a continued rise in health care costs to the Australian community due to the growing number of people diagnosed with mental health disorders. Those mental health disorders may originate from a number of sources, including work and non-work-related factors. So called work-related stress claims in all Australian jurisdictions are the most expensive form of workers compensation claim. In the most part this is due to the lengthy period of absence (duration) and complicated medical care which are characteristic of these claims. In Australia, in the last decade, attempts have been made to reduce the costs of compensable stress related claims by imposing special legislative thresholds on such claims. This "back end" approach to cost reduction has resulted in an array of legislative formula designed to exclude work related stress claims. This article surveys the various legislative provisions dealing with work-related stress claims in Australia and provides an analysis of their effectiveness. A range of options are presented as alternatives to the exclusion of particular forms of work related stress claims. The use of a corporate citizenship approach to the prevention and management of stress claims is also discussed as a proactive alternative to occupational safety and health legislative provisions and the workers compensation legislative exclusions.

An international comparison of occupational health guidelines for the management of mental disorders and stress-related psychological symptoms

“…For example, in the Netherlands sickness and disability compensation is provided regardless of the cause of disability, but in Finland only mental disorders are eligible for compensation and symptom diagnoses (such as stress and burnout) are not 9. In addition, in Canada,51 Australia52 and the USA53 no mental health conditions are covered. These differences in systems may impact the content of guidelines; for instance interventions may be successful in one country but totally inappropriate in another given the differences in roles of caregivers and other stakeholders and the legal protections available to workers.…”

The role of mediation in resolving workplace relationship conflict

“…Although the cost to organisations and workers' compensation schemes, prevalence of stress claims, and relevant legislation varies between states, nationally the number of claims continues to rise (Dollard & Knott, 2004). These claims are also expensive due to the often lengthy periods of absence and complicated medical care characteristic of this type of injury (Cotton, 2008;Guthrie, Ciccarelli, & Babic, 2010). Such is the increasing number of psychological injury claims in Australia, a range of legislative amendments has been implemented in all jurisdictions (Cotton, 2008;Guthrie et al, 2010).…”

“…These claims are also expensive due to the often lengthy periods of absence and complicated medical care characteristic of this type of injury (Cotton, 2008;Guthrie, Ciccarelli, & Babic, 2010). Such is the increasing number of psychological injury claims in Australia, a range of legislative amendments has been implemented in all jurisdictions (Cotton, 2008;Guthrie et al, 2010). Yet, as Cotton (2008, p.8) notes, the situation has not been able to be legislated away.…”

“…Yet, as Cotton (2008, p.8) notes, the situation has not been able to be legislated away. Moreover, compensable stress-related claims continue to grow, along with their associated expenses (Guthrie et al, 2010). Research also suggests that available statistics under-estimate the extent of workplace stress, as many people neither report it nor file a compensation claim (Caulfield, Chang, Dollard, & Elshaug, 2004, p.149).…”

Policy responses to work-related stress: Examining Taiwan’s experiences from a welfare state regime perspective

“…In countries of the Liberal welfare type, on the other hand, there are more emphases on the adjustment of workers' compensation systems to accommodate stress-related claims (U' Ren and U'Ren, 1999;Lippel and Sikka, 2010;Guthrie et al, 2010) and most of these stress-related claims involve mental disorders.…”