What is workers' compensation?
Workers' compensation is a state-based insurance scheme that covers medical expenses and wage replacement for employees injured or made ill at work.
Workers' compensation is a compulsory insurance scheme that provides benefits to employees who suffer a work-related injury or illness. It covers medical and rehabilitation expenses, weekly income replacement payments, lump sum payments for permanent impairment, and death benefits. Each Australian state and territory runs its own scheme with different rules and benefit levels.
Employers must hold workers' compensation insurance in their state or territory (except in some states where self-insurance is permitted for large employers). Claims are made through the employer's insurer. You do not need to prove your employer was at fault — the scheme is no-fault. However, your injury or illness must arise out of or in the course of your employment.
Key facts
- •Compulsory for all employers — each state and territory has its own scheme
- •No-fault system — you don't need to prove your employer was negligent
- •Covers medical costs, wage replacement, rehabilitation, lump sums for permanent impairment, and death benefits
- •Weekly payments are typically 85–95% of pre-injury earnings for an initial period, reducing over time
- •Key schemes: WorkCover (VIC), icare (NSW), WorkCover QLD, ReturnToWorkSA, WorkSafe (WA/TAS)
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Employment CheckFrequently asked questions
Can I be fired while on workers' compensation?
In most states, there is a protected period (typically 6–12 months) during which you cannot be dismissed solely because of your work-related injury. After that period, termination may be possible but must still comply with unfair dismissal and discrimination laws.
Do I need to report my injury to my employer?
Yes, as soon as practicable. Delaying your report can affect your claim. Most states require written notification. Your employer must then lodge the claim with their insurer.
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.