While Karoshi (death by overwork) and Karojisatsu (suicide as a result of overwork and stress) as legal terms originated in Japan, Australia and New Zealand have now set legal precedents in support of these principals eg Transmissions and Diesel Vs Mrs. Matheson, several staff from government departments such as police, Centrelink etc, are being quoted in court proceedings in Australia leading to greater stress leave, redundancy and compensation to families payouts. Over 50 Million dollars have been paid to 2 former employees of Wal Mart as a result of litigation proceedings related to workplace bullying and stress.
The Herald Newspaper carried an article which pointed that at least 6 litigation cases for stress payouts were awarded $750.000.
A precedent was set in a 2000 Court of Appeal judgement which awarded a former child abuse officer, Beth Seedsman, $750,000 for NSW Polices failure to provide a safe system of work or protection from mental injury” (Lamont and Pelly, SMH, News, March 13, 2006, p.3.)
In the case of he State of NSW v Coffey  NSWCA 361, 7 November 2002 (Meagher, Heydon and Ipp JJA), the judges decision was that under common law, an employee with a psychological injury may be able to sue an employer for negligence and be awarded damages.
In Jaksic v WorkCover/Allianz Australia Workers Compensation (SA) Ltd (Konica Australia Pty Ltd)  SAWCT 17A, the SA Workers Compensation Tribunal found the workplace contributed to an employee's anxiety and set aside WorkCover SA's denial of the employee's claim. WorkCover had argued it was a disciplinary interview that caused the employee's anxiety; therefore the stress claim could be denied. However, the judge found other action, not just the disciplinary action, contributed to the employee's injury.