Can I claim work injury damages for psychological injuries alone?

Quick answer

Yes, it’s possible to claim work injury damages for psychological injuries alone. If you’re outside NSW, your work injury damages claim is referred to as a ‘common law damages’ claim.

To receive compensation, you must provide proof that:

  1. You developed a recognised psychiatric injury at (or because of) work.
  2. Your employer acted negligently.
  3. Their negligence caused or contributed to your condition.

The amount of compensation you receive depends on the severity of your injuries and the state you live in.

In depth answer

Every employer is required to create a safe working environment for their employees. This extends beyond just physical safety — your employer must take all reasonable steps to protect your mental health too.

If your employer fails to do this, you may have a claim for ‘pure psychological injury’. Also known as ‘emotional distress’, this means you’re only claiming for psychological injury, rather than a combination of physical and psychological injuries.

Examples of employer negligence

The following examples of employer negligence may cause an employee to suffer psychological injury:

  • Bullying, harassment or intimidation: by anyone in your workplace, including your employer or co-workers.
  • Sexual harassment or assault: by anyone in your workplace.
  • Excessive stress and pressure: this can include unreasonable workloads and deadlines, as well as being pressured to work dangerous hours.
  • Exposure to traumatic situations: this may be a single traumatic event or multiple events over time.
  • Workplace accidents: you may develop a psychological illness as a result of an accident at work. 

What psychological injuries can I claim compensation for?

While the rules in every state are different, you can usually make a claim if your employer’s negligence causes you to develop:

  • Anxiety.
  • Depression (Major Depression Disorder).
  • Post-Traumatic Stress Disorder (PTSD).
  • Adjustment Disorder.
  • Insomnia.

This is not a complete list — these are just some of the psychological injuries we see.

To learn more about making a work injury damages claim for psychological injury, read our state-by-state guide below.

Different laws apply in different states. Please choose your state below so we can show you the most relevant content.

In NSW, you must meet four criteria to make a work injury damages claim:

  1. You suffered at recognised psychiatric illness at (or because of) work.
  2. Your employer’s negligence caused your injury.
  3. You have 15% or more Whole Person Impairment.
  4. You have already received all your statutory lump sum entitlements.

Proving employer negligence

To prove that your employer was negligent, you need to establish three elements:

  1. That a duty of care exists: Your employer must owe you a ‘duty of care’. Generally speaking, most employers owe their employees a duty of care.
  2. Your employer breached their duty of care: Their conduct must have fallen below an acceptable standard, meaning no reasonable employer would have done the same thing.
  3. Their negligence cause your injury: It’s not enough that your employer was negligent, you must show a direct link between their action (or inaction) and your injuries. 

Whole Person Impairment

Your degree of Whole Person Impairment (WPI) must be assessed by a registered psychiatrist. They will use the Psychiatric Impairment Rating Scale (PIRS) to assess how your condition effects your life.

Understanding the Psychiatric Impairment Rating Scale (PIRS)

 The PIRS breaks down your psychological injuries into six main areas of ‘impact’:

  1. Self-care and personal hygiene: your ability to complete day-to-day tasks such as showering, cooking, and dressing yourself.
  2. Social and recreational activities: your capacity for social outings like going to a cinema or restaurant. They will also consider if you belong to any clubs or social groups.
  3. Travel: whether you can travel to new places without support.
  4. Social functioning: if you’re able to maintain relationships and form new connections. They will also assess your communication skills.
  5. Concentration, persistence and pace: whether your attention span is sufficient to complete common work tasks.
  6. Adaptation: your ability to attend work regularly and carry out tasks without constant supervision.

The psychiatrist will give you a rating between one and five for each category, with one being no impairment and five being extreme impairment. Your percentage of Whole Person Impairment is then based on these ratings.

You can find the detailed PIRS calculation table in section 11.13 of the SIRA guidelines.

What compensation you can claim

 If you satisfy the four criteria for making a work injury damages claim, you may be entitled to claim:

  • Lost income (including superannuation).
  • Loss of future earning capacity.

Unlike weekly workers compensation payments, a work injury damages claim can result in a substantial lump sum settlement — with no ongoing insurer requirements to fulfil.

However, it’s important to note that a successful work injury damages claim extinguishes your right to workers compensation benefits. This includes your weekly payments and any medical, hospital and rehabilitation expenses.

In Queensland, you must meet 3 criteria to make a successful common law damages claim for psychological injury:

  1. You’ve developed a recognised psychiatric illness at (or because of) work.
  2. Your employer’s negligence caused this psychiatric illness.
  3. You have a minimum Injury Scale Value of 1.

Proving employer negligence

You need to establish three elements to prove employer negligence:

  1. That a duty of care exists: Your employer must owe you a ‘duty of care’. It is generally accepted that employers have a duty of care to their employees.
  2. Your employer breached their duty of care: Their conduct must have fallen below an acceptable standard. This means no reasonable employer would have acted as they did.
  3. Their negligence cause your injury: You must show a direct link between your injury and your employer’s action (or inaction).

Injury Scale Value (ISV) assessments

Your Injury Scale Value is assessed by a registered psychiatrist. They will look at several factors, including:

  • The Psychiatric Impairment Rating Scale (PIRS).
  • Age and life expectancy.
  • Whether you have ‘reduced insight’ e.g. if you are aware of any abnormal behaviour.
  • Pain and suffering.
  • Loss of amenities of life.
  • The likelihood that you would have experienced these difficulties regardless of the accident.

Understanding the Psychiatric Impairment Rating Scale (PIRS)

The Psychiatric Impairment Rating Scale is one of the most crucial components of determining your ISV. It breaks down your psychological injuries into six main areas of ‘impact’:

  1. Self-care and personal hygiene: whether you can undertake everyday activities like bathing, preparing food, and going to the bathroom unassisted.
  2. Social and recreational activities: if you can visit cinemas, restaurants or other recreational venues without help. This also includes whether you can tolerate visits from family and friends and attend social events.
  3. Travel: your ability to travel to new places without support.
  4. Social functioning: whether you’re able to communicate effectively and sustain relationships.
  5. Concentration, persistence and pace: your capacity to maintain focus, carry out basic tasks and hold conversations.
  6. Adaptation: also referred to as ‘deterioration’, this is your ability to regularly attend work and do work tasks without supervision.

For each category, the psychiatrist will give you a rating from one to five. A rating of one means no impairment, while a rating of five denotes extreme impairment.

For more detail on the PIRS scale and how it’s used in psychological injury claims, see Schedule 5 of the Act.

Determining your ISV

The court will use your PIRS ratings (and the other factors above) to assign you an ISV between 0 and 100. The lower your ISV, the less severe your injuries:

  • 0 – 1 ISV: minor mental disorder with a PIRS rating of 1 – 3%.
  • 2 – 10 ISV: moderate mental disorder with a PIRS rating of 4 – 10%.
  • 11 – 40 ISV: serious mental disorder with a PIRS rating of 11 – 30%.
  • 41 – 65 ISV: extreme mental disorder with a PIRS rating of 31 – 100%.

What you can claim

You may be eligible to claim for ‘non-economic losses’, ‘economic losses’, essential medical treatment and equipment, and the cost of ongoing care and assistance.

Economic loss

  • Lost income (past and future).
  • Lost superannuation (past and future).

Non-economic loss (general damages)

Non-economic loss compensates you for the negative impact of the injury on your life. This includes:

  • Pain and suffering.
  • Loss of enjoyment of life.
  • Loss of opportunity.

Medical treatment and equipment

  • Medical treatment (past and future).
  • Travel between your home and medical appointments.
  • Home and vehicle modifications.

Care and assistance

  • Professional care or unpaid care from a loved one. This also includes if you’ve lost the capacity to care for someone who depends on you.

How we can help you

Our dedicated work injury lawyers have extensive experience with psychological injury claims. Over the years, we’ve developed strategies to ensure that your injuries are accurately assessed and you meet all state-specific negligence criteria. We also use our national network of medical experts to build strong evidence supporting your case.

Whether you’ve just been injured or have struggled for years — we can help. In a free consultation, we’ll outline your legal options and how much compensation you may be entitled to.

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