Workers Compensation Stress Leave: Your Guide

Struggling with workplace stress? You could be eligible for substantial compensation.

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Can I claim workers compensation for stress?

For most of us, moderate stress is a normal part of working life. But if workplace stress has led to anxiety, depression, or another recognised psychiatric condition, you may have a workers compensation stress leave claim.

It doesn’t matter whether:

You’re a part-time, full-time or casual worker.
If you're a subcontractor (in most cases).
Your condition was pre-existing, so long as it was aggravated by work-related stress.

If you’re struggling with a work stress-related condition, contact us today. With decades of experience and expert training in both psychiatry and law, our legal team is uniquely equipped to handle your stress claim.

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What conditions qualify for a workers comp stress claim?

You can make a workers compensation stress claim for any recognised psychiatric condition caused (or exacerbated by) work-related stress. In our experience, the most common conditions include:

Depression
Anxiety

Adjustment disorder
Post-Traumatic Stress Disorder

Importantly, this list is not exhaustive. If you’ve developed a psychiatric condition due to work, you may be eligible for stress leave workers comp payments.

Situations where you can claim workers comp for stress

Between 2021 and 2022, approximately 10,000 serious mental stress claims were made across Australia. Of these, the largest proportions were attributed to work-related harassment or bullying (27.5%) and work pressure (25.2%).

While these are the most common, there are many situations where you can claim workers comp for mental stress, including:

High workload: constantly being overburdened with tasks and deadlines.
Workplace bullying or harassment: experiencing or witnessing bullying, harassment, or discrimination at work.
Traumatic events: being involved in or witnessing traumatic events at work, whether a single incident or several events over time.
Intimidation: being intimidated by a supervisor or work colleague.
Job insecurity: fear of losing your job or uncertainty about your role.
Physical injuries: suffering a physical injury at work can often lead to corresponding stress and psychiatric conditions.
Poor management: lack of support, unclear expectations, or inconsistent management.
Long hours or overtime: extended working hours without adequate breaks or time off can lead to burnout.

How to file a workers comp claim for stress

To make a successful stress leave workers compensation claim, you’ll need to prove three key points:

Your condition must be diagnosed by a GP or psychiatrist in line with your state’s medical guidelines.

You need to demonstrate that your psychiatric condition was caused by workplace stress, or that workplace stress was a significant contributing factor.

This might mean you’re unable to work full-time (or at all) or that you require ongoing medical treatment.

How much compensation will I get?

There is no average payout for stress at work — it all depends on the seriousness of your condition and how it impacts your life.

Generally speaking, if you’re claiming workers comp for stress, you’ll receive weekly payments covering lost wages and medical bills. But if you’re permanently impaired, you could also get an additional lump sum payout.

Your workers comp claim for mental stress typically includes several basic entitlements:

Weekly payments: these cover lost earnings, usually up to 95% of your pre-injury income.
Medical and hospital expenses: all necessary medical treatments and hospital stays.
Rehabilitation and support services: access to rehabilitation, counselling, and other support services to aid your recovery.
Travel expenses: reimbursement for travel costs related to your treatment and recovery.

If your condition is permanent, you may qualify for an additional lump sum payment. This typically involves having your Whole Person Impairment (WPI) assessed. The amount you receive is based on your WPI, and you usually need to meet a minimum threshold to be eligible.

State	Minimum WPI
New South Wales	15%
Victoria	30% or a ‘serious’ injury
Queensland	1%
Tasmania	10%
Australian Capital Territory	No minimum WPI required
Western Australia	No minimum WPI required

In Queensland, although there is an extremely low impairment threshold, your percentage of impairment will affect the amount of compensation you receive. Similarly, the ACT and Western Australia do not have a minimum Whole Person Impairment (WPI) threshold. Instead, they provide a set amount of compensation based on the type of injury.

To learn more about lump sum payments, refer to our guide to workers compensation claims for permanent impairment. This guide provides detailed requirements for securing a lump sum payment in your state.

If an insurer offers you a lump sum payment, it’s essential to seek expert legal advice before accepting. A specialist workers compensation lawyer can evaluate the fairness of the offer and negotiate a higher settlement if necessary.

How long will I receive payments?

How long you receive stress related workers compensation payments depends on the severity of your condition and how it limits your ability to work. In general, your payments will last anywhere from 13 weeks to five years. During this time, your insurer will conduct regular reviews to assess the amount and your ongoing eligibility.

After five years, payments generally end unless you have a percentage of Whole Person Impairment over 20%. The exact length of time you receive payments depends on your state, the severity of your condition, and your work capacity.

How to claim stress-related workers compensation

Follow these four steps to start your stress-related workers compensation claim:

Inform your employer in writing within the required timeframe for your state. For instance, in NSW, you must notify your employer within 30 days of your diagnosis to avoid rejection of your claim. At this time, you should also request a claim form from your employer.

If you haven’t already, obtain a medical certificate from your GP or mental health professional. This certificate should document the nature and extent of your condition and confirm that it’s caused by stress.

With your medical certificate in hand, submit your claim to your employer. Depending on your state, you may be eligible for ‘provisional payments’ while the insurer assesses your claim. These payments typically start seven days after notifying the insurer and cover:

- Up to 12 weeks of lost income.
- Up to $7,500 for necessary medical treatment.

Full weekly payments should begin within seven days once the insurer accepts your claim. If there are delays or your claim is denied, speak to a workers compensation lawyer for help getting your claim fast-tracked.

Insurers can sometimes unfairly delay or deny claims, particularly when a worker is unrepresented and their claim relates to a psychiatric condition (rather than a physical one). If your claim is delayed, our experienced workers compensation lawyers can step in and speed up the process.

If your claim is denied, we’ll help you appeal the insurer’s decision. Our experienced team will gather additional medical reports, witness statements, and expert testimonies to strengthen your case and get your denied claim overturned.

How much does it cost to make a claim?

Absolutely nothing. In NSW, your workers comp stress claim is fully funded by the Independent Review Office (IRO), so you’ll never receive a bill from us.

If you have a permanent impairment, you may also be eligible for additional claims like Total and Permanent Disability (TPD). Although these claims aren’t covered by the IRO, you’re still protected by our No Win No Fee guarantee.

Meet the team

Our team use their extensive experience to increase your chances of success. We’ve won many awards for our work, including ‘Compensation Law Firm of the Year 2020 GBM Global Awards.’

Leon Monaco

Managing Partner

English, Russian
Workers Compensation, TPD, Motor Vehicle Accidents, Public Liability

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Medea Hanna

Senior Associate

English
Workers Compensation, Comcare, Dust Disease

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Jamie Palivos

Associate

English
Workers Compensation

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Frequently asked questions

All Open

As an employee, you have a legal right to a healthy workplace. This means your employer is obligated to provide a safe environment and minimise factors that could lead to mental health issues.

If you’re facing work-related stress, follow these steps to ensure you receive the emotional and financial support you need:

Identify the source of your stress: determine whether your stress is work-related or stems from personal issues such as the loss of a loved one, relationship problems, or financial concerns.
Seek psychiatric help: regardless of the source of your stress, it’s essential to consult a mental health professional. Start with your GP, who can provide referrals to psychologists or psychiatrists. They can also issue a medical certificate to help you take time off work or file a workers compensation claim later.
Take stress leave: speak to your employer about taking stress leave. In most cases, you can use your sick leave for stress-related time off. If your employer denies this, the Office of the Ombudsman can help you secure the leave you need. Alternatively, reach out to one of our expert workers compensation lawyers for assistance in requesting stress leave from your employer.
Get specialist legal advice: if your stress escalates into a psychiatric condition or is triggered by unreasonable work hours, bullying, or other factors in an unhealthy work environment, we strongly recommend consulting a lawyer. Our dedicated team will guide you through your legal options, including the types of claims you can pursue and the potential compensation you could receive.

Time limits apply to all workers compensation stress leave claims.

First, you must report your condition to your employer as soon as it occurs. We also suggest consulting a specialist workers compensation lawyer at this stage to understand your rights.

Next, you must file your claim within the specified time limit, which varies by state:

NSW, QLD, SA and TAS	6 months of the incident that caused your condition.
VIC	30 days of the incident that caused your condition.
WA	12 months of realising you have a mental health condition.
NT	6 months of the incident that caused the mental health condition or developing the condition.
ACT	3 years of realising you have a mental health condition.

If you’re outside the time limit, you still have options — just speak to one of our lawyers today. We have successfully resolved hundreds of delayed claims for our workers compensation clients over the years.

When claiming workers comp due to stress, you can expect to get up to 95% of your pre-injury weekly earnings, including benefits like overtime and shift allowances. The exact amount will depend on your earnings before the injury.

It’s important to note that your payment might be capped at the maximum weekly compensation amount. For example, in NSW, the current maximum is $2,497.70, which is adjusted for inflation twice a year.

Additionally, if you’re able to work and earn some income, any earnings will be deducted from your weekly compensation.

You can still claim workers compensation even if you had a psychiatric condition before starting your job. This could be a separate condition from the one caused by workplace stress, or your existing condition might have worsened due to work-related stress.

In both situations, the ‘egg-shell skull rule’ applies. This rule means your employer is liable for the full extent of your injury, loss, and damage, even if a reasonable person might not have suffered such significant harm from the same workplace stressors.

Yes, you may have more than one claim for the same stress-related psychiatric condition. Your exact entitlements will depend on your state, the severity of your condition, and whether you’re able to return to work.

Over the years, we’ve found that the vast majority of our clients are eligible for additional claims. Often, these claims are worth significantly more than their workers compensation payments alone.

Common law damages claims

If your employer’s negligence caused (or contributed to) your condition, you might be eligible for a common law damages claim. Each state has its own requirements for common law damages claims, but you generally need to meet a minimum impairment threshold to qualify for compensation.

A successful common law damages claim can result in a substantial lump sum payment. On top of your basic workers compensation benefits, your compensation may cover:

Future lost earnings and superannuation.
Future medical expenses, treatment, and rehabilitation costs.
Your pain and suffering (the negative impact of your condition on your life)

Superannuation claims

If your condition prevents you from returning to work, you may be eligible for payments through your superannuation policy. For short-term absences, you might be able to claim income protection payments. If you’re permanently unable to work due to your condition, you may have a Total and Permanent Disability (TPD) claim instead.

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How a lawyer can help your stress claim

With over 25 years’ experience in workers compensation stress claims, we’ll always:

Explain your rights and how much you’re eligible to claim.
Ensure you receive provisional payments as quickly as possible.
Get you the support, treatment, and time off work you need.
Gather strong evidence to substantiate your claim.
Negotiate with the insurer on your behalf.
Appeal your claim if it’s denied or if the insurer isn’t offering a fair settlement.
Identify your additional entitlements, such as a lump sum, TPD benefit or common law damages.
Secure the maximum compensation for your condition.

Speak to one of our friendly lawyers

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