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"Ongoing" performance monitoring, along with a team leader's management style and a heavy workload, caused an employee's psychological injury, a commission has ruled in rejecting an employer's 'reasonable action' defence.

The Westpac personal lending specialist claimed lump sum workers' compensation for an adjustment disorder that she alleged arose from bullying and harassment from her team leader, whose management style "created a toxic and stressful work environment".

But Westpac denied liability, arguing her injury was wholly or predominately caused by reasonable management action taken in respect of a performance appraisal.

In applying to the NSW Personal Injury Commission to resolve the dispute, the employee said she had worked for Westpac and its predecessor for 18 years without issue, and only began to experience breakdowns and panic attacks following the team leader's appointment in April 2019...