Ending employment during workers compensation

Resigning from a job while on workers compensation

An employee can resign from their job while they're on workers compensation. They:

  • have to give the correct notice period to their employer
  • can use their workers compensation period as the notice period.

Notice periods can be different in each award and registered agreement. Check the Resignation - how much notice page for more information about notice periods under awards.

Dismissed by an employer while on workers compensation

Under the National Employment Standards, if an employer dismisses an employee while they’re away from work on workers’ compensation, they:

  • need to give the employee written notice of termination
  • aren’t required to pay out the employee’s notice period (but can choose to).

Some employees aren’t entitled to notice of termination. Visit our Who doesn’t get notice? page for more information.

Employees who are away from work on workers’ compensation and are covered by an award, enterprise agreement, other registered agreement or employment contract may have extra notice of termination entitlements and may be entitled to payment in lieu of notice. Employers and employees should check the terms of their award, agreement or contract.

Use Find my award to find out which award applies. To find a registered agreement, visit the Fair Work Commission’s website external-icon.png.

Protections

There may be protections in workers compensation legislation that prevent employees from being dismissed while on workers’ compensation. Contact the workers compensation regulator in your state or territory for more information.

Redundancy while on workers compensation

If an employee's job is made redundant while on workers compensation, the employer has to:

  • pay them the correct notice period
  • pay out any entitlements, including redundancy pay if it applies.

Check the Redundancy pay & entitlements page for more information about redundancy pay.

All awards and registered agreements have a consultation process for when there are major changes to the workplace, such as redundancies.

Employers have to talk to an employee on workers compensation if they decide to make a significant change in the workplace that will affect the employee's job. This has to occur as the decision is made, not when the employee comes back to work from workers compensation.

Think a mistake might have been made?

Mistakes can happen. The best way to fix them usually starts with talking.

Check out our Help resolving workplace issues section for practical advice on:

  • figuring out if a mistake has been made
  • talking to your employer or employee about fixing it
  • getting help from us if you can't resolve it.

Help for small business

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