When a worker is injured in the course of their employment, the workers compensation system is designed to provide financial support, medical treatment and assistance to help them return to work. While employees have responsibilities in this process, employers also carry significant legal obligations.
In New South Wales, these obligations are governed primarily by the Workers Compensation Act 1987 (NSW) and the Workplace Injury Management and Workers Compensation Act 1998 (NSW). Understanding employer duties under workers compensation is crucial. Not only to ensure compliance, but also to support injured workers through a difficult time and avoid penalties or disputes.
At Law Works Compensation Lawyers, we regularly assist injured employees seeking clarification of their rights and responsibilities. Below, we break down the key employer obligations in NSW workers compensation claims.
1. Maintain a Current Workers Compensation Insurance Policy
Every NSW employer must hold a valid workers compensation insurance policy unless they are exempt (typically small businesses paying under a set wages threshold).
This policy ensures employees are financially protected if an injury occurs, and failing to maintain insurance is a serious offence that can result in:
- Fines and penalties
- Legal action
- Liability for the worker’s compensation costs personally
Key takeaway: Having valid workers compensation insurance is non-negotiable.
2. Provide a Safe Workplace
Employers must take reasonable steps to prevent workplace injuries. This includes:
- Identifying and managing hazards
- Providing safety training and supervision
- Maintaining equipment and safe work practices
- Encouraging reporting of risks and near-misses
Workplace safety falls under WHS obligations, but it also ties directly into workers compensation exposure.
3. Report Workplace Injuries Promptly
When a worker reports an injury, employers must:
- Register the injury in an incident log immediately
- Notify their insurer within 48 hours of becoming aware of a work related injury
- Assist the worker to submit a workers compensation claim form if needed
Delays in reporting can jeopardise benefits for the worker and expose the employer to penalties.
4. Support the Worker Through the Claims Process
Employers are expected to:
- Provide the worker with claim forms and information
- Assist with lodging the claim and certificates of capacity
- Maintain communication through the recovery period
- Supply wage and employment details to the insurer promptly
Trying to discourage a worker from claiming compensation is unlawful and can lead to serious consequences.
5. Provide Suitable Duties Where Possible
One of the core employer obligations in NSW is the duty to support a worker’s return to work. Employers must:
- Cooperate with the insurer and treating doctors
- Provide suitable modified duties where available
- Implement a return-to-work plan
- Consult with the worker regarding duties and capacity
Suitable duties may include adjustments such as:
- Reduced hours
- Light duties
- Alternative tasks
- Modified work environments
If suitable duties are genuinely not available, employers must demonstrate why.
6. Maintain the Worker’s Position for 52 Weeks (Where Reasonable)
Under NSW law, an employer must keep the worker’s job open for at least 52 weeks of incapacity unless it is not reasonably practicable to do so.
Employers cannot:
- Dismiss a worker solely because they are injured
- Pressure the worker to resign
- Replace them without proper grounds
Doing so may breach workers compensation legislation and employment law protections.
7. Protect the Worker from Discrimination
Employers must not treat a worker unfairly because they:
- Suffered a workplace injury
- Are receiving workers compensation
- Require modified duties
Any adverse action may amount to a breach of anti-discrimination and employment laws.
8. Maintain Confidentiality
Medical and claims information must be kept confidential. Employers must not share details except where legally required (e.g., with insurers or treating providers).
Many workers compensation disputes arise from miscommunication or misunderstanding. Common errors include:
- Failing to lodge a claim promptly
- Pressuring injured workers to return before they are medically fit
- Ignoring medical certificates
- Refusing or failing to provide suitable duties when available
- Terminating employment prematurely
- Not responding to insurer requests
These actions can expose employers to legal disputes and penalties.
What If an Employer Does Not Follow Their Obligations?
If an employer breaches workers compensation responsibilities, the worker may be entitled to take further action, including:
- Filing a complaint with SafeWork NSW
- Lodging a dispute with the Personal Injury Commission
- Seeking penalties against the employer
- Obtaining legal representation to enforce rights
At Law Works Compensation Lawyers, we assist injured workers to enforce entitlements and ensure they receive fair treatment throughout the compensation process.
When Should an Injured Worker Seek Legal Advice?
Legal advice is recommended if:
- The employer fails to report the injury
- Suitable duties are not offered
- Payments are delayed or stopped
- Liability is disputed or the claim is denied
- The worker feels pressured to resign or return early
- The employer is not complying with their obligations
Workers compensation law is complex and early advice can prevent long-term issues.
Need Help With a Workers Compensation Claim?
At Law Works Compensation Lawyers, we specialise in NSW workers compensation claims and can guide you through the process step-by-step.
We assist with:
- Workplace injury claims
- Psychological injury claims
- Work injury damages claims
- Denied or delayed claims
- Permanent impairment claims
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⚖️ No Fees – your fees are paid in full by IRO
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