When workplace injuries occur, understanding your rights under New South Wales workers’ compensation law can make a significant difference in determining whether you face financial hardship or receive fair compensation.Â
In this article, we’ll show examples of successful compensation cases and what you need to know if you think you are eligible for compensation.
Understanding NSW Workers' Compensation
Workers’ compensation in NSW is designed to protect employees who suffer injuries or illnesses in the course of their employment. The NSW workers’ compensation system operates under several interconnected pieces of legislation:
Workers’ Compensation Schemes: Legislation & How They Work
The primary legislation, the Workers Compensation Act 1987 (NSW), establishes the foundation for compensation claims, while the Workplace Injury Management and Workers Compensation Act 1998 (NSW) governs the claims process and dispute resolution. The Workers Compensation Regulation 2016 (NSW) is also important, as it provides detailed procedural requirements, fee schedules, and administrative guidelines that support the operation of the primary legislation.
Another crucial piece of legislation is the Work Health and Safety Act 2011 (NSW), which creates employer duties that, when breached, can strengthen workers’ compensation claims and provide additional avenues for compensation through common law claims. Employers must provide a safe working environment for their employees, including those who work from home, ensuring that all workspaces meet established safety standards.
The NSW workers’ compensation system is administered by a workers’ compensation regulator known as iCare (Insurance & Care NSW), which replaced WorkCover NSW in 2015. Each state has their own regulators of the Workers’ Compensation Scheme:
- In the Australian Capital Territory (ACT), it is WorkSafe ACT
- In Queensland, it is WorkSafe as part of the Office of Industrial Relations
- In Victoria, it is WorkSafe Victoria
- In South Australia, it is ReturnToWorkSA
- In the Northern Territory, it is NT WorkSafe
- In Western Australia, it is WorkCover WA
- In Tasmania, it is WorkSafe Tasmania
iCare in NSW processes thousands of claims annually, with successful outcomes depending on proper understanding of legal requirements, adequate evidence, and strategic case presentation.
Types of Compensable Injuries Under Workers’ Compensation
NSW workers’ compensation covers a broad range of injuries and conditions, including physical and, in some cases, psychological injuries or illnesses:
- Physical injuries sustained during work activities represent the most common claims, including traumatic injuries from accidents, repetitive strain injuries, and occupational diseases developed over time.
- Occupational diseases, including conditions such as asbestosis, silicosis, and hearing loss, are covered under both general workers’ compensation provisions and specialised legislation, such as the Workers’ Compensation (Dust Diseases) Act 1942.
- Psychological injuries present unique challenges under Section 11A of the Act, which requires that employment be the main contributing factor to the psychological condition. Proposed changes in 2025 to the threshold for impairment from psychological injuries are now also before parliament to distinguish psychological claims from physical injury claims.
For further information on eligible injuries and illnesses, as well as the impact of recent changes regarding psychological claims, please get in touch with our team.
Understanding Rights and Entitlements
Workers should understand their full range of entitlements under NSW workers’ compensation law:
- Income Replacement: Weekly compensation payments provide financial support during recovery periods, calculated based on pre-injury earnings.
- Medical Coverage: All reasonable and necessary medical treatment is covered, including ongoing rehabilitation and pain management.
- Return-to-Work Support: Employers must provide suitable duties when workers are medically cleared for modified work.
- Dispute Resolution: Workers have the right to dispute insurer decisions through internal review processes and proceedings before the Workers’ Compensation Commission.
- Common Law Claims: In cases involving employer negligence, workers may be entitled to additional damages beyond workers’ compensation benefits.
Dealing with Employers and Insurers
Effective communication with employers and insurers requires careful consideration and attention to detail. Firstly, always communicate important information in writing, keeping copies of all correspondence for your records. In your submission and communications, try to provide truthful and accurate information about injuries, work capacity, and treatment compliance.
Secondly, inconsistencies can damage credibility, so keep detailed records of all communications, including dates, participants, and key points discussed. It is also worth considering asking your lawyers to handle complex communications, particularly when disputes arise or important decisions must be made.
Lastly, strive to maintain professional relationships with employers and insurers, even when disagreements arise regarding claim entitlements.
GET HELP NOW WITH YOUR WORKPLACE INJURY
Get in touch with our Workers’ Compensation claims team
Devenish v Kizlock Pty Ltd [2022] NSWPICPD 22
The Claim
Michael Devenish claimed compensation for the costs of lumbar spine surgery (laminectomy and L5/S1 fusion) performed in June 2018. He argued that accepted knee injuries caused instability, leading to a fall in November 2017, which aggravated the pre-existing lumbar condition requiring surgical intervention.
The Decision
An appeal was allowed, and the original decision was revoked. The Court found the Member erred in rejecting uncontradicted medical evidence, placed excessive weight on the absence of contemporaneous complaints, and considered irrelevant medical matters. The fall and subsequent need for spinal surgery were established as a consequence of the accepted knee injuries.
Compensation Outcome
The employer was ordered to pay the costs of lumbar laminectomy and L5/S1 fusion surgery performed on 7 June 2018 under Section 60 of the 1987 Act.
Bunnings Group Limited v Collins [2022] NSWPICPD 24
The Claim
The respondent was a worker at Bunnings Group Limited who claimed compensation for a psychological injury. They alleged experiencing workplace difficulties with their supervisor, which culminated in a telephone call on 3 November 2020, during which a transfer was suggested. The worker felt coerced and psychologically decompensated, requiring time off from their job.
The Decision
The appeal was dismissed and the original decision confirmed. The Court determined the supervisor’s suggestion of transfer was unreasonable in manner and timing, given the worker’s known fragile psychological state.
Compensation Outcome
The worker was awarded compensation, and the employer made provisional payments until January 2021 before disputing the claim. Orders made in the worker’s favour following the unsuccessful appeal confirmed entitlement to ongoing compensation for psychological injury.
It is worth noting that in 2025, the NSW government is proposing changes to payments and the eligibility criteria for compensation for psychological injury, including increasing the Whole Person Impairment (WPI) threshold for psychological injury (learn more about these changes here). If you are unsure whether or not these changes might impact your claim, you should seek legal advice and speak with a professional as soon as possible.
CSR Ltd v Eddy [2005] HCA 64
The Claim
Mr. Eddy worked as a carpenter and labourer for multiple employers over several decades, with exposure to asbestos-containing materials from the 1960s through the 1980s. He was diagnosed with mesothelioma in 2003, decades after his last exposure.
Occupational disease claims present unique challenges:
- Long latency periods between exposure and diagnosis
- Multiple potential liable employers and insurers
- Difficulty proving specific exposure incidents
- Complex apportionment between different periods of exposure
The case required extensive investigation to identify and account for all potential liable parties and their insurers during relevant exposure periods.
The Decision
The determination of the High Court of Australia established important principles for claims related to occupational diseases. It clarified key aspects of these claims, including the apportionment of liability among multiple employers and the calculation of damages for progressive diseases. The case has been cited in numerous subsequent decisions regarding occupational diseases.
Compensation Outcome
Mr. Eddy received substantial compensation, including:
- Comprehensive medical treatment costs
- Loss of earning capacity calculations
- Pain and suffering damages
- Provisions for ongoing care and support
The total settlement exceeded $1.2 million, reflecting the severity of mesothelioma and the established link between asbestos exposure and the disease.
Common Factors in Successful Claims
Strong Medical Evidence
Successful workers’ compensation claims invariably feature comprehensive medical evidence that clearly establishes the diagnosis, causation, and impact of the work-related injury or disease.
This evidence typically includes records of medical attention following the discovery of the illness or injury, specialist medical reports that show the injury or illness was sustained at work, ongoing treatment documentation, and functional capacity assessments.
Proper Notification and Documentation
NSW workers’ compensation law imposes strict notification requirements that can affect claim validity. Section 254 of the Workplace Injury Management Act requires workers to give notice of injury to their employer as soon as practicable, but no later than six months after the injury. Late notification can result in claim rejection unless exceptional circumstances exist.
A detailed incident report provides crucial evidence about how the accident or illness occurred and helps establish that injuries occurred in the workplace or as a result of work.
Witness statements from coworkers, supervisors, or others who witnessed the accident or observed changes in your condition can provide valuable corroborating evidence (if you have access to them). This may even include statements regarding whether the workplace was safe, as your employer has a responsibility to provide safety training or education, equipment, and a safe workplace to prevent injuries and illnesses.
Photographic Evidence of accident scenes, hazardous conditions, or visible injuries can strengthen claims and support arguments about employer negligence.
If you would like a more detailed explanation of making workers’ compensation claims, please see our article ‘5 Steps to Making a Workers’ Compensation Claim‘.
Legal Representation Benefits
Professional legal representation significantly improves claim outcomes, as legal firms experienced in workers’ compensation claims possess the necessary legislative knowledge to navigate this complex area of law.
Many cases can involve complex interactions between multiple statutes, regulations, and case law. Experienced lawyers understand how these provisions apply to specific circumstances. The claims process also involves strict deadlines, specific forms, and procedural requirements. If you are working with legal representation, they can ensure your submission is complete and demonstrates the right evidence in accordance with all procedural obligations.
Experienced lawyers understand insurer practices and can negotiate fair settlements, which is important as many claims are resolved through dispute resolution rather than formal hearings. However, when claims do proceed to the Workers’ Compensation Commission or the courts, legal representation is essential for effective advocacy and the presentation of evidence.
Securing legal representation ensures the best possible chance at securing the financial support you deserve, including compensation for lost wages or lump sum compensation, medical expenses, ongoing treatment, and other forms of assistance if needed.
Key Takeaways
- Notify your employer of workplace injuries as soon as practicable, but no later than six months after the injury occurs.
- Comprehensive medical evidence from specialists is essential for proving your injury is work-related and establishing its impact.
- Both physical and psychological injuries can be compensated, though psychological claims require employment to be the main contributing factor.
- Professional legal representation significantly improves your chances of navigating complex workers' compensation laws and securing fair outcomes.
Are You Eligible for Workers’ Compensation?
Successful workers’ compensation cases in NSW demonstrate that injured workers who understand their rights, seek appropriate medical treatment, and obtain experienced legal representation significantly improve their chances of favourable outcomes.
If you’ve suffered an injury at work in NSW, contact our team today for a free, no-obligation consultation to discuss your specific situation and how we can help you secure your entitlements under the workers’ compensation system.
