Can I Be Fired for Filing a Worker’s Compensation Claim in Australia?

January 7, 2026
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Suffering an injury at work can be stressful, both physically and financially. While Australia’s worker’s compensation system exists to support injured employees, many workers worry about job security after filing a claim. A common concern is whether an employer can legally terminate employment because an employee has made a worker’s compensation claim.


Understanding your rights is essential to protecting yourself from unfair or unlawful dismissal.


Understanding Worker’s Compensation in Australia

Worker’s compensation (often referred to as WorkCover) is a compulsory insurance scheme that provides financial and medical support to employees who are injured or become ill due to their work. It typically covers medical expenses, income replacement, rehabilitation, and return to work assistance.

Importantly, lodging a worker’s compensation claim is a lawful process designed to protect workers not punish them.


Is Filing a Worker’s Compensation Claim a Legal Right?

Yes. Under Australian law, filing a worker’s compensation claim is considered a workplace right. The Fair Work Act 2009 protects employees from being treated unfairly or dismissed for exercising such rights.

This means an employer must not take adverse action including termination against an employee simply because they have made a worker’s compensation claim.


Can an Employer Dismiss You for Making a Worker’s Compensation Claim?

An employer is not permitted to terminate your employment simply because you have lodged a worker’s compensation claim. Doing so may constitute unlawful adverse action under Australian employment law and expose the employer to significant legal penalties. Any form of retaliation including dismissal, reduced working hours, or intimidation that arises from an employee exercising their right to claim compensation is strictly prohibited.



When Termination May Still Be Lawful

While employees are protected, filing a worker’s compensation claim does not provide absolute immunity from dismissal. An employer may lawfully terminate employment if:

  • The dismissal is unrelated to the worker’s compensation claim
  • The employee is unable to perform the inherent requirements of their role even after reasonable adjustments
  • There is a genuine redundancy or business restructure
  • There are documented performance or conduct issues unrelated to the injury


In such cases, the employer must be able to clearly demonstrate that the dismissal was based on legitimate and lawful grounds.


Protection Under the Fair Work Act

The Fair Work Act places the burden of proof on the employer in adverse action claims. This means if an employee alleges they were dismissed because of a worker’s compensation claim, the employer must prove the claim played no part in the decision.


Additionally, state and territory worker’s compensation laws may provide further protection, including restrictions on dismissal during certain injury related absence periods.


What to Do If You Are Fired After Filing a Claim

If you believe you were dismissed because you filed a worker’s compensation claim, you may have legal options, including:

  • Filing a General Protections Application with the Fair Work Commission
  • Applying for unfair dismissal, if eligible
  • Seeking reinstatement or financial compensation


Strict time limits apply, often within 21 days of dismissal, so prompt action is critical.


Why Legal Advice Matters

Employment and worker’s compensation laws can be complex, particularly when multiple legal frameworks overlap. Seeking advice from an experienced employment lawyer can help you understand your rights, assess the strength of your claim, and take the appropriate legal steps.

Professional legal guidance ensures your interests are protected and increases the likelihood of a favourable outcome.


Conclusion

In Australia, you cannot legally be fired simply for filing a worker’s compensation claim. The law provides strong protections to prevent employer retaliation and to ensure injured workers can access their entitlements without fear. However, termination may still occur for legitimate and unrelated reasons. If you believe your dismissal was unfair or unlawful, obtaining timely legal advice is essential to protecting your rights and securing justice. Act Law Associates provides experienced legal guidance to help employees understand their options and take appropriate action under Australian employment law.

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