Workers in NSW* who have sustained a psychological injury may be eligible for workers compensation benefits including lump sum compensation.
1 What is a psychological injury?
It is more than an emotional or stress response. It is a medically diagnosable psychiatric condition.
It is important your doctor use proper medical terminology on your medical certificates, rather than general terms like "stress" or "anxiety".
2 Do I have to prove the employer's actions were unreasonable?
Not generally. It is a no fault compensation system. You simply have to prove real events occurred at work or in connection with your work, and your perception of those events (whether reasonable or not) caused you to suffer an injury.
However, no compensation is payable if your injury was “wholly or predominantly” caused by "reasonable" action taken, or proposed to be taken, by your employer with respect to:
transfer;
demotion;
promotion;
performance appraisal;
discipline;
retrenchment;
dismissal; or
provision of employment benefits to workers
This can be difficult for the employer to prove as there are often a number of incidents or events leading to an injury.
The actions of the employer must be "reasonable", not just in terms of the decision to take action, but the manner in which that action is carried out.
3 What is the WPI threshold for claiming lump sum compensation?
Lump sum compensation is only payable if you have at least 15% WPI.
4 How is my permanent impairment assessed?
Primary psychological injuries are assessed using the Psychiatric Impairment Rating Scale (PIRS) which evaluates the behavioural consequences of psychiatric disorder in 6 key areas:
Self care and personal hygiene
Social and recreational activities
Travel
Social functioning (relationships)
Concentration, persistence and pace
Employability
Secondary psychological injuries (resulting from a physical injury rather than things that happened while you were at work) are not assessed.
5 What if I have a pre-existing condition or injury?
If you have a pre-existing condition that contributes to your impairment, the assessor will make a deduction for the proportion of the impairment caused by that condition.
If that is too difficult or costly to work out, then 10% of the impairment will be deducted under s 323 Workplace Injury Management and Workers Compensation Act 1998.
Contact us for more information.
*Police officers, paramedics and firefighters can have more than one assessment and claim. Coal miners cannot receive lump sum compensation for psychological injuries.
DISCLAIMER: This blog is made available by Mortimer Fox Lawyers to give you general information and a general understanding of the law, not to provide specific legal advice. Unless otherwise stated, all information provided pertains to injuries sustained in or in connection with New South Wales. By using this blog you understand that there is no solicitor client relationship between you and Mortimer Fox Lawyers. This blog should not be used as a substitute for legal advice. If you require legal advice please contact us for an appointment.
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