If you have been injured at work and are on WorkCover, one of the most common fears is losing your job while you recover. Some employers are supportive and understanding — others, unfortunately, start making threats or looking for reasons to end the employment. It is a frightening situation when you are already dealing with pain, reduced income, and uncertainty about your recovery.
The short answer is: no, your employer cannot simply sack you because you made a workers’ compensation claim or because you are unable to work due to a work-related injury. But the legal protections are more nuanced than a simple yes or no, and there are limits you need to understand.
The Protection Under Queensland Law
The Workers’ Compensation and Rehabilitation Act 2003 (Qld) provides specific protection for injured workers. Under this Act, an employer is prohibited from dismissing a worker solely because the worker has sustained a work-related injury that makes them unable to perform their usual duties.
This protection applies for a defined period following the date of injury.
During this protection period, your employer must:
- Keep your position open where it is reasonable to do so
- Cooperate with your rehabilitation and return-to-work plan
- Offer suitable duties or modified work where available and appropriate to your capacity
If your employer dismisses you, reduces your hours, demotes you, or takes other adverse action against you in retaliation for making a workers’ compensation claim, this is unlawful.
What Happens After the Protection Period Ends?
The statutory protection under Queensland’s workers’ compensation law is not unlimited. Once the protection period expires, your employer may have more latitude to make decisions about your ongoing employment — but they still cannot act unlawfully.
Even after the protection period, additional protections may apply under federal law — particularly the Fair Work Act 2009 (Cth), which protects employees from adverse action taken because they exercised a workplace right (including the right to make a workers’ compensation claim). Unfair dismissal protections under the Fair Work Act may also apply if you are dismissed in circumstances that are harsh, unjust, or unreasonable.
For specific advice on employment protections after an injury, speak to a lawyer who practises in both workers’ compensation and employment law — like the team at GC Law.
What If Your Employer Offers You a Termination Payment?
Some employers, rather than formally dismissing an injured worker, will approach them with a settlement offer or a request to sign a deed of release. This might be framed as a “generous” offer, a redundancy, or a mutual separation.
Do not sign anything without independent legal advice.
Signing a deed of release can extinguish your rights — including rights to ongoing weekly benefits, lump sum compensation, and potentially common law damages. Once signed, you generally cannot undo it. The long-term consequences of signing before you fully understand your entitlements can be severe.
If you receive any offer or document from your employer, call GC Law before you respond.
Your Right to Return to Work
Queensland’s workers’ compensation framework places significant obligations on employers when it comes to return to work. Your employer must:
- Take reasonable steps to provide suitable duties or alternative work if you are not yet capable of your pre-injury role
- Cooperate with your WorkCover case manager and your nominated treating doctor in developing a return-to-work plan
- Not unreasonably refuse suitable duties that your treating doctor and WorkCover have approved
If your employer refuses to cooperate with your return to work — or is creating a hostile environment that makes return impossible — this can be a significant issue with real legal consequences for them.
What About Redundancy?
Some employers use redundancy as a way to end employment while an injured worker is on WorkCover. While genuine redundancies can occur during the workers’ compensation period, a “redundancy” that is really designed to remove an injured worker is likely to be unlawful.
If your employer announces that your role is redundant shortly after you make a WorkCover claim, or if the redundancy process seems targeted at you rather than a genuine business restructure, seek legal advice immediately. The Fair Work Ombudsman and specialist employment lawyers can help assess whether the redundancy is genuine.
Making a Complaint or Taking Action
If your employer has dismissed you, threatened to dismiss you, or taken adverse action against you because of your WorkCover claim, you have options:
- Queensland workers’ compensation system — complaints about employer conduct can be made to the Workers’ Compensation Regulator
- Fair Work Commission — general protections claims (for adverse action) and unfair dismissal claims can be lodged here if the Fair Work Act 2009 (Cth) applies to you. Note: strict 21-day time limit applies for unfair dismissal claims from the date of dismissal
- Civil action — depending on the circumstances, there may be other avenues available
Time limits for employment claims can be extremely short — particularly the 21-day period for unfair dismissal under the Fair Work Act. If you have been dismissed, call a lawyer the same day.
What About Ongoing Workers’ Compensation Benefits?
Losing your job does not automatically end your workers’ compensation entitlements. If you were legitimately dismissed — or if you resigned — your WorkCover benefits may continue if you remain incapacitated for work. However, the rules around this are complex and depend on the circumstances. Speak to GC Law to understand how termination interacts with your ongoing claim entitlements.
What If Your Employer Makes Your Return to Work Difficult?
Some employers, rather than formally dismissing an injured worker, make the workplace so uncomfortable or difficult that the worker feels they have no option but to resign. This is sometimes called constructive dismissal — and it can be just as legally significant as a formal termination.
Signs that an employer may be trying to force you out include:
- Refusing to provide suitable duties despite a medical clearance
- Changing your role, location, or roster in ways that are clearly unsuitable given your injury
- Treating you differently from other employees
- Making comments about your ability to do the job or your “reliability”
- Excluding you from team meetings, communications, or decisions
- Threatening performance management or disciplinary action in connection with your injury-related absence
If any of these situations apply, document everything. Keep notes of conversations with dates, times, and what was said. Keep copies of emails and text messages. This evidence can be critical if you need to take action later.
Workers’ Compensation and Superannuation — Do Not Overlook Your Super
If your work-related injury or illness is serious enough that it has permanently affected your ability to work, you may have a separate entitlement through your superannuation fund. Most Australians who have worked are covered for Total and Permanent Disability (TPD) through their super fund — and a TPD claim is completely separate from your workers’ compensation claim.
Many injured workers are not aware of this entitlement, or assume their super fund will contact them if they are eligible. Super funds do not proactively contact members about TPD claims — you need to make the claim yourself, or through a lawyer. For more information, see our guide on superannuation claims in Queensland.
Practical Takeaways
- Your employer cannot sack you solely because you made a WorkCover claim or are unable to work due to a work injury — Queensland law prohibits this during the protection period
- Additional protections under the Fair Work Act may apply, including against adverse action and unfair dismissal
- Do not sign any deed of release, settlement document, or termination agreement without independent legal advice first
- Your employer must cooperate with return to work — failure to do so has legal consequences
- If you suspect a “redundancy” is really about your injury, treat it as a warning sign and get legal advice immediately
- Strict time limits apply for employment claims — particularly the 21-day window for unfair dismissal under the Fair Work Act
- Losing your job does not automatically end your WorkCover benefits — get advice on how they interact
GC Law — Protecting Injured Workers in Queensland
At GC Law, our team understands the intersection of workers’ compensation and employment law — and we know how stressful it is when your job is threatened on top of dealing with an injury. As a Queensland Law Society Accredited Specialist personal injury firm, we provide frank, plain-English advice about your rights and options. We act on a No Win, No Fee basis, offer free initial consultations, and provide home visits including to regional Queensland. Our workers’ compensation lawyers and employment lawyers work together to protect your rights across both areas.
If you are worried about your job while on WorkCover, or if you have already been dismissed, call GC Law today for a free, no-obligation Claim Review. Time limits are strict — act now.
Call GC Law: 1300 302 318
Website: www.gclaw.com.au
Free Claim Review — no cost, no obligation
This article is general information only and does not constitute legal advice. For advice specific to your circumstances, please call GC Law on 1300 302 318 for a free, no-obligation Claim Review.
