Workers' Comp and Annual Leave — Can You Take Both at the Same Time?

In most Australian states and territories, you cannot take paid annual leave at the same time as receiving workers' compensation payments. The logic is simple: workers' compensation is designed to replace your income while you're unable to work due to a workplace injury. Annual leave is designed for rest and recreation during periods when you would otherwise be working.

Receiving both simultaneously would amount to double-dipping. However, this general rule has important nuances that vary significantly by state, and there are several scenarios where the interaction becomes complicated.

This is where it gets complicated, because the answer depends on your state. In NSW, you continue to accrue annual leave for the first 12 months of workers' compensation (but not after). In Victoria, you generally continue to accrue leave while receiving weekly payments.

In Queensland, you accrue leave during any period you receive workers' comp payments for full normal earnings, but not during partial payments. In Western Australia, leave accrual is generally paused during workers' comp.

In South Australia, you accrue leave for the first 12 months. Check your specific state's workers' compensation legislation, as these rules change periodically.

NSW: Accrue leave for first 12 months on comp. Can't take annual leave while receiving comp payments. VIC: Generally continue accruing leave.

Cannot take annual leave while on comp. QLD: Accrue during full-pay comp periods.

Employer can't force you to use annual leave instead of comp. WA: Leave accrual generally paused. Can't take leave while on comp. SA: Accrue for first 12 months.

Cannot take leave while on comp. TAS: Check the Workers Rehabilitation and Compensation Act 1988.

ACT: Similar to NSW — 12-month accrual period. NT: Check the Return to Work Act 1986. In all states, your employer CANNOT force you to use your annual leave instead of making a workers' comp claim.

A common but often overlooked issue: most employers do not pay superannuation contributions while you're on workers' compensation. This is because workers' comp payments are generally not considered 'ordinary time earnings' for SG purposes. So extended periods on workers' comp can create significant gaps in your super accumulation.

Some enterprise agreements and contracts do require employers to continue super contributions during workers' comp — check yours. If you're returning to work on reduced hours (a graduated return to work plan), super should be paid on the hours you actually work.

This is unfortunately common. Some employers pressure injured employees to take annual leave or sick leave instead of lodging a workers' comp claim. This is problematic for several reasons: it depletes your leave balances, it means the employer avoids their workers' comp insurance obligations, it leaves no record of a workplace injury (which matters if symptoms worsen later), and it may be illegal depending on your state.

If you've been injured at work, you have the right to lodge a workers' comp claim. Your employer can't penalise you for doing so — this is protected under General Protections (s.340-341 of the Fair Work Act).

Report any pressure to your state's workers' comp authority.