The NSW government is shaking things up in the workers compensation arena to tackle escalating psychological injury claims and poor return-to-work rates. Currently, only half of workers with psychological injuries are back on the job within a year, while claims have surged over the last six years. The proposed Workers Compensation Legislation Amendment Bill 2025 aims to tighten the criteria for claiming psychological injury compensation, potentially making it tougher for workers to seek help when they need it most.
Key Points
- Significant proposed changes to NSW workers compensation laws for psychological injuries.
- Eligibility for claims now requires a primary psychological injury arising from a ‘relevant event’ and connection to employment.
- New processes will make it necessary for workers to first seek court findings on bullying or harassment before claiming compensation.
- Higher threshold for permanent impairment: 31% for psychological injuries compared to 15% for physical injuries.
- One-off payments for work pressure disorders rather than ongoing compensation.
- The bill contradicts existing definitions of harassment, making legal processes potentially more complex.
- Employer responsibilities may shift, with potential for fewer claims but more disputes.
Why should I read this?
If you care about workplace rights or are part of a team navigating the complex waters of employee well-being, this article is a must-read. The proposed changes could reshape how psychological injuries are treated in the workplace, impacting countless workers and their rights to seek compensation. You don’t want to be left in the dark about how these shifts might affect safety and mental health protocols in your workplace.
