Workers compensation is a system where workers get financial support if they're injured at work, managed by state or territory-based organisations.
The workers compensation system is designed to help employees who suffer from injuries or illnesses due to their job. It includes covering medical expenses and providing income support while they recover. Each Australian state and territory has its own rules and organisation for handling these claims. The aim is to support workers financially during their recovery period and help them return to work.
Every employer must have workers compensation cover under the law of the state or territory where its employees work, for example through icare in New South Wales, WorkSafe Victoria or WorkCover Queensland, unless it is a licensed self-insurer. Employers must notify their insurer of a workplace injury within the required time and help injured workers return to suitable work. Under the Fair Work Act, it is unlawful to dismiss an employee because of a temporary absence due to injury. For example, a warehouse worker who hurts their back lifting stock should be supported to lodge a claim and offered suitable duties when they are ready.
Read our guide to leave and absence, or call our HR advice line.
General information only
This content is general information about Australian employment law, current at the date it was last reviewed. It does not take your circumstances into account and is not legal advice. For advice about your situation, call Employment Compass on 1300 144 002.
Last reviewed: October 2026
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