A former Centrelink employee has been awarded substantial compensation after a tribunal found he was effectively forced to resign while experiencing significant mental health issues.
The Case That Forced a Resignation
Luke Wilson began his employment with Services Australia as a customer service officer in Toowoomba in March 2023, later transitioning to an acting senior project officer position at the Maryborough office in May 2024. His career took a dramatic turn when workplace pressures culminated in a medical certificate from his GP in February 2025 declaring him unfit for work due to mental health concerns.
The Fair Work Commission heard compelling evidence about the circumstances leading to Mr Wilson's departure. He testified that the agency had been negligent in addressing serious mould problems at the Maryborough office, which he claimed contributed to respiratory illness and forced him to work in isolation from home.
Workplace Issues and Mental Health Decline
Mr Wilson further alleged that during the latter half of 2024, he experienced mistreatment and bullying after raising concerns with management about unresolved workplace matters. While one incident involving a subordinate was resolved in December 2024, Services Australia presented evidence suggesting Mr Wilson's communication had become excessive and disruptive.
The tribunal heard that a senior staff member received 36 phone calls and 24 text messages from Mr Wilson over just five weeks, with many conversations lasting up to an hour and occurring multiple times daily. The concerned staff member described Mr Wilson as emotionally distressed, crying during discussions and reporting feelings of being bullied, ultimately suggesting he take time off for his mental wellbeing.
After returning to the Maryborough office on 13 January 2025, Mr Wilson left work distressed just one month later. His GP diagnosed him with adjustment disorder featuring anxiety and depressive symptoms directly caused by workplace stress, declaring him unfit for work for at least a month from 11 February.
Failed Accommodation and Financial Pressure
A crucial meeting occurred two days later with Mr Wilson and his support person, during which he requested a temporary transfer to the Hervey Bay service centre. The Commission heard this reasonable accommodation was refused due to alleged lack of vacancies, despite his deteriorating mental state.
Mr Wilson told the tribunal that without income from Services Australia, he could no longer afford professional mental healthcare. Disturbing case notes recorded him stating: 'If I kill myself, it is on you guys.' He also expressed outrage that the agency contacted his GP to inquire about his capacity to resign, writing: 'You're all supposed to be here to rehabilitate not exasperate a person's condition. Shame on you all.'
Commission Findings and Compensation
Deputy President Tony Slevin found Mr Wilson was 'in a state of emotional distress' and that the agency's conduct during the five weeks leading to his resignation, when he had no income, left him no real choice but to resign. The Commission ruled Services Australia had 'unwittingly exacerbated' Mr Wilson's condition by continuing to engage with him while he was medically unfit for work.
'Services Australia contends that Mr Wilson had other options. I find that his state of mind and financial situation were such that he had no option but to resign both for the sake of his health and to enable him to earn an income,' Deputy President Slevin stated. 'He was in a very dark place.'
While acknowledging Mr Wilson's behaviour was at times inappropriate, the Commission recognised this occurred in the context of mental illness. Deputy President Slevin ordered Services Australia to pay Mr Wilson $33,348 plus superannuation, finding he had been unfairly dismissed under the circumstances.
Mr Wilson has since taken a lower-paid position as a full-time optical assistant, compared to his previous $78,800 salary with Services Australia, highlighting the ongoing financial impact of this workplace dispute.
