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An employee has failed to prove on appeal that his employer was vicariously liable for his co-worker's "extreme and unnecessary" behaviour towards him, which caused him to suffer post-traumatic stress disorder.

In 2014, the employee and his co-worker – both armed guards with now de-registered labour hire company The Staff Factory – were required to escort a truck to and from a service factory.

While the pair were waiting in their vehicle outside the service factory, the co-worker "for no apparent reason" pulled his loaded gun out of its holster and pointed it at the employee's head...