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Stressful conditions may be covered under workers’ compensation law

Work-related stress can have a serious impact on your mental health — and in some cases, it may entitle you to compensation. If your psychological injury has been caused by stressful conditions at work, such as excessive demands, lack of support, or workplace conflict, you may be able to claim under the WorkCover scheme. In some situations, you could also have grounds for a common law claim if your employer’s negligence contributed to your condition. Understanding your rights when it comes to mental health and workplace stress is essential — and Gordon Legal is here to help you navigate the process.

Stress claims involve bullying, unsafe workloads and violence

Psychological injury claims often arise from repeated exposure to harmful workplace environments. This can include bullying or harassment by colleagues or managers, unrealistic workloads and deadlines, lack of support, or even exposure to violence or threats in the workplace. These factors can lead to stress-related conditions like anxiety, depression, or PTSD. If your mental health has been affected by your work environment, you may be eligible to make a WorkCover claim — and potentially a common law claim if your employer failed in their duty of care.

Compensation can cover loss of income, therapy and more

If you’ve suffered a work-related psychological injury, you may be entitled to a range of benefits under WorkCover. This can include weekly payments to make up for lost income, coverage for medical and psychological treatment such as counselling or medication, and support with your return to work. In more serious cases, you may also be eligible for lump sum compensation. Every claim is different, so it’s important to get legal advice to understand what you’re entitled to.

Case Studies

Kelly the Kitchen Hand

Kelly worked at a restaurant called Health Hit, where she was solely responsible for plating intricate dishes — including their signature Prawn Punch, topped with a delicate crown of kale. The pressure of maintaining perfection daily took its toll, and after a customer complained about a collapsed kale crown, Kelly broke down in front of staff and left the kitchen distressed.

Her doctor diagnosed her with severe stress disorder, anxiety, and depression. Kelly immediately informed her manager, hoping steps would be taken to reduce the strain. Instead, no support was offered and new, even more demanding tasks were added to her workload.

Because Kelly’s psychological injury was directly linked to her excessive workload and lack of support — and she reported it promptly — her WorkCover stress claim was successful. She received weekly payments while off work and had her therapy sessions covered, helping her begin the journey to recovery.

Alex the Banker

Alex was accused of sexual harassment by a colleague. Her employer launched a formal investigation — interviewing staff, reviewing emails and text messages, and suspending Alex during the process.

Weeks later, the investigation cleared Alex of any wrongdoing and she returned to work. However, the experience left her anxious and overwhelmed. Once passionate about her role, Alex now dreads coming to work, feeling isolated and judged by colleagues.

While the investigation process was distressing, the employer acted within their rights to investigate a serious allegation and suspend Alex. These actions are considered reasonable management action, so unfortunately, Alex is unlikely to succeed in a WorkCover stress claim.

Gordon Legal understands how stressful situations affect your job and life

Our lawyers have decades of experience handling complex and sensitive cases, and we understand the unique challenges that come with mental health and stress-related claims.
We’re here to ease the legal burden so you can focus on your recovery, not financial stress. For personalised advice tailored to your situation, we offer confidential consultations.

Contact Gordon Legal on 1300 59 95 17 — whether you’re in Melbourne, Geelong, or anywhere across Victoria.

For your convenience, we offer appointments via phone, Zoom, WebEx, or Skype. Let’s talk when and how it works best for you.

What do I need to show to make a successful claim?

To make a successful WorkCover claim, you need to show that your injury or illness is work-related. This means proving:

  • You were injured while doing your job or because of your work
  • You reported the injury to your employer
  • You have medical evidence, such as a certificate from your doctor

You don’t need to prove your employer was at fault – WorkCover is a no-fault system. However, if you’re making a common law claim for damages, you will also need to prove that your employer was negligent.

Do I need a diagnosis to start the claims process?

Yes, to lodge a WorkCover claim, you’ll need a medical diagnosis from a healthcare professional. This usually comes in the form of a Certificate of Capacity, which outlines your injury, how it affects your ability to work, and your treatment plan. This certificate is essential to support your claim and start receiving entitlements like medical expenses or weekly payments.

What sort of compensation am I entitled to?

If your WorkCover claim is accepted, you may be entitled to several types of compensation depending on the nature and severity of your injury. These can include:

  • Weekly payments to cover lost wages while you recover
  • Medical and treatment expenses, such as GP visits, physiotherapy, psychology sessions, medication and surgery
  • Rehabilitation support to help you return to work
  • Lump sum compensation if you’ve suffered a permanent injury
  • Common law damages if your injury was caused by your employer’s negligence

Every case is different, so it’s best to get tailored legal advice. Gordon Legal can help you understand exactly what you’re entitled to and guide you through the process.

Will I have to go to court for a stress claim?

Most WorkCover stress claims are resolved without going to court. Many cases settle through negotiation or alternative dispute resolution like mediation. However, if your claim is disputed or compensation is denied, you may need to attend a hearing at the Victorian Workers’ Compensation Tribunal.

Your lawyer will guide you through every step and help you avoid court if possible, but they will also prepare you fully if a hearing is necessary.

How can I connect with a lawyer to discuss workplace stress?

If you’re experiencing workplace stress and want to understand your legal options, the first step is to reach out for a confidential consultation. You can contact Gordon Legal by:

  • Calling us at 1300 57 25 18
  • Visiting our contact page to book a consultation online
  • Scheduling a meeting over the phone, Zoom, WebEx, or Skype for your convenience

Our experienced team will listen to your situation, explain your rights, and help you take the next steps toward getting support and compensation.

No win, no fee

Help when you need it most without the added stress of upfront legal fees engaging a
no win, no fee lawyer. When you need legal help, understandably, the first thing people often think is ‘can I afford it?’ To address this, our Senior Partner, Peter Gordon and Partner, Paul Henderson pioneered the ‘no win, no fee’ system to create greater access to the legal system.

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