In recent years, there has been a significant rise in awareness regarding mental health in Australian workplaces. This heightened attention is reflected in the increasing number of workers’ compensation claims for psychological injuries. Notably, during the 2021–22 period, mental health conditions accounted for 9% of all serious workers’ compensation claims, marking a 36.9% increase since 2017–18.
Psychological injuries in the workplace encompass conditions such as depression, anxiety, post-traumatic stress disorder (PTSD), and adjustment disorders. These injuries often stem from factors like workplace bullying, harassment, exposure to traumatic events, or excessive work pressures. Unlike physical injuries, psychological injuries can be more challenging to diagnose and substantiate in a workers’ compensation claim. However, under Australian workers’ compensation laws, employees suffering from work-related psychological injuries are entitled to compensation.
In Australia, each state and territory administers its own workers’ compensation scheme. Despite variations, general principles apply nationwide:
|
Eligibility |
Employees who suffer a psychological injury at work may be eligible for compensation if they can demonstrate that their employment significantly contributed to the injury. |
| Compensation Coverage | This may include medical expenses, psychological treatment, wage replacement, and rehabilitation programmes. |
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Assessment Process |
Claims undergo thorough assessment, and not all mental health-related claims are accepted.
For instance, in New South Wales, an employer can take reasonable action as a defence where a psychological injury is caused by actions such as transfer, demotion, promotion, performance appraisal, discipline, retrenchment or dismissal, and provision of employment benefits. |
Workers’ Compensation for mental health
WorkCover schemes in Australia address mental health claims under principles similar to those for physical injuries.
Employees may be entitled to:
- Medical and psychological treatment costs – This includes therapy, counselling, medication, and specialist psychiatric care.
- Income support – If the injury necessitates time off work, the employee may receive weekly payments.
- Rehabilitation and return-to-work programmes – Workers’ Compensation/Work Cover may fund programmes to assist employees in reintegrating into the workforce.
- Lump sum compensation – In cases of permanent psychological impairment, employees may be entitled to a lump sum payout.
Filing a stress leave workers’ compensation claim involves several key steps:
| Step 1:
Report the injury |
Step 2:
Obtain medical evidence |
Step 3:
Lodge a claim |
Step 4:
Claim assessment |
| Employees should report psychological injuries to their employer as soon as possible. Delays in reporting may impact the claim. | A medical practitioner must assess and diagnose the injury, providing a certificate detailing the condition and its connection to work-related stressors. | Employees must submit a formal workers’ compensation mental health claim through the relevant state or territory’s WorkCover/Worker’s Compensation authority. | The insurer will assess the claim, considering medical evidence, workplace reports, and supporting documentation. If approved, compensation benefits will commence; if denied, employees may appeal the decision. |
ALSO READ: The Importance of Workplace Rehabilitation
Workers’ Compensation/WorkCover for mental health
Many employees take stress leave for workers’ compensation when experiencing severe psychological distress due to workplace factors. Stress leave can be compensated if the injury meets WorkCover’s criteria for a psychological injury.
Common workplace stressors that may lead to a successful workers’ compensation stress leave claim include:
- Workplace bullying and harassment
- Exposure to traumatic events
- Excessive workload and unrealistic deadlines
- Workplace violence or threats
- Unsafe or toxic work environments
How employers can help prevent psychological injury at work
Australian employers have a duty of care to prevent workplace-related psychological injuries. Proactive measures include the following:
| Implementing Mental Health Policies and Training | Educating staff about mental health and promoting a supportive environment. |
| Encouraging a Positive Work Culture | Fostering a workplace free from bullying and harassment. |
| Offering Employee Assistance Programs (EAPs) | Providing confidential counselling services to employees |
| Ensuring Reasonable Workloads and Expectations | Balancing tasks to prevent excessive stress. |
| Providing Safe Spaces for Discussion | Allowing employees to voice mental health concerns without fear of stigma. |
How Healthstin can support your psychological injury recovery
As an Allied Health Provider, we offer comprehensive support to individuals recovering from psychological injuries through Exercise Physiology, Physiotherapy, and Hydrotherapy.
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Exercise Physiology |
Structured physical activity can reduce stress, anxiety, and depression. Our Expert Exercise Physiologists develop tailored programmes to enhance mental well-being, improve sleep quality, and boost energy levels. |
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Physiotherapy |
Chronic pain is often linked to psychological distress. At Healthstin, our Physiotherapists provide treatments that alleviate physical discomfort, which can positively impact mental health and overall function. |
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Hydrotherapy |
Water-based rehabilitation can have a calming effect on the nervous system. Hydrotherapy promotes relaxation, reduces stress, and helps individuals regain confidence in their movement. |
Healthstin is an accredited Allied Health Provider under the National Disability Insurance Scheme (NDIS) and Workers’ Compensation. If you or a loved one is recovering from a workplace-related psychological injury, our Allied Health Team can support your journey through tailored Exercise Physiology, Physiotherapy, and Hydrotherapy programmes designed to enhance mental and physical wellbeing.
Call 1300 090 931 or click this link to book a session today.
