Payments & leave while on workers compensation

Workers compensation is a form of insurance payment paid to employees if they are injured at work or become sick due to their work.

Payment of workers compensation

The amount of money paid to employees on workers compensation will depend on the state or territory.

The amount paid to an employee is an insurance payment and not a wage. The employee is paid:

  • directly by the insurer
  • from the insurer through the employer or
  • by the workers compensation regulator.

What if my employer does not pay the workers compensation?

Sometimes the insurer accepts the workers compensation claim and the employer doesn't pass on the insurance money to the employee.

An employee can take the following steps to resolve this issue:

  1. Contact the employer regarding the payment
  2. Contact the insurance company regarding the matter
  3. Contact the workers compensation regulator in their state or territory.  

Superannuation and workers compensation

Some awards and registered agreements may give employees an entitlement to superannuation while they’re away from work on workers compensation. For more information and to check your award go to Tax & superannuation.

Accident pay

Some awards have entitlements to accident pay for employees on workers compensation. Accident pay is the difference between what an employee would normally get paid and the amount they get paid from workers compensation. It's paid by the employer.

To check whether your award has accident pay, select from the list below:

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Leave and workers compensation

Employees on workers compensation can take unpaid parental leave if they're eligible. Go to Maternity and parental leave to find out who is eligible for parental leave.

If it's allowed under the state or territory workers compensation legislation, employees can take or accrue:

  • annual leave
  • personal leave
  • long service leave.

Visit our Library to learn more about Annual leave and sick leave on workers compensation.

You can also contact the relevant workers compensation regulator in your state or territory for information about long service leave on workers compensation.

Employees don't get public holidays while on workers compensation.

Dismissed by an employer while on workers compensation

An employee who is not at work and is getting workers compensation due to an injury gets payment in lieu of notice on termination. A notice period doesn't apply as an employee getting workers compensation is unfit for work.

Resignation while on workers compensation

An employee who resigns on workers compensation may need to provide notice to their employer. Use our Notice and Redundancy Calculator to work out how much.

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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