An employer's compliance with a contractual obligation to transfer an employee at the direction of a third party (such as a school principal) is not determinative of whether the transfer constitutes 'reasonable action' for the purposes of s 11A of the Workers Compensation Act 1987 (NSW). The reasonableness of the action must be assessed objectively by reference to the facts giving rise to the transfer. The three judges differed on whether the employer must establish the third party's direction was objectively reasonable (Basten JA), or whether it suffices that the employer reasonably believed the direction was proper (Hodgson JA and Rein J).
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