Workers’ compensation lump sum payments in Queensland
If you are injured at work in Queensland, it is important to understand your rights and entitlements to workers’ compensation lump sum compensation. Injured workers have two options to pursue lump sum compensation; a statutory claim due to permanent impairment and common law damages if you believe your employer’s negligence contributed to your injury.
In this article, we discuss:
- What is a statutory workers’ compensation claim (Queensland)?
- Lump sum compensation under a statutory workers’ compensation claim
- Can you challenge the lump sum compensation?
- Accepting or rejecting the offer of lump sum compensation
- Workers’ compensation common law claims (Queensland)
What is a statutory workers’ compensation claim (Queensland)?
In Queensland, when you have been injured at work or travelling to or from work, you may lodge an application for workers’ compensation with Workcover Queensland or your employers’ self-insurer.
If your application for workers' compensation is accepted by the insurer, you have commenced what we refer to as a statutory claim.
As part of your statutory claim, you may have entitlement to the following statutory benefits/compensation:
- funding of weekly benefits to cover for lost wages;
- funding of medical treatment and rehabilitation for accepted injuries;
- reimbursement of travel expenses related to your treatment.
These benefits will be paid either weekly or as required, and you may be entitled to these benefits for up to a period of five years, depending on the severity of your injuries.
You may receive these benefits until a point in time when you are able to return to your ordinary hours or when your injuries have stabilised and are unlikely to improve with further medical treatment, which is referred to as ‘stable and stationary’. At this point in time, you may be entitled to another form of compensation known as lump sum compensation.
Lump sum compensation under a statutory workers’ compensation claim
Unlike the statutory benefits listed above, lump sum compensation is a single payment made from Workcover or your employer’s self-insurer to compensate you if you have sustained a permanent impairment.
What is permanent impairment?
If you continue to be affected by your injuries despite completing the appropriate medical treatment, you have likely sustained a permanent impairment.
To determine if you have sustained a permanent impairment, Workcover or your employer’s self-insurer will assess you for a degree of permanent impairment when your injuries are considered stable and stationary.
The assessment process involves you being examined by an independent medical expert to assess whether your work-related injuries are stable and stationary and, if so, determine a percentage of permanent impairment for your injuries.
For psychological injuries, an independent medical expert will still assess whether your injuries are stable and stationary. However, you will be referred to an independent body known as the Medical Assessment Tribunal, which consists of 3 to 5 independent medical experts in the relevant field, to provide you with a percentage of permanent impairment.
If Workcover or your employer’s self-insurer does not arrange for you to be assessed for permanent impairment, it is important to understand that you may also request to undergo a permanent impairment assessment.
Once you have undergone the degree of permanent impairment assessment, you should be issued with a document titled “Notice of Assessment” within 10 business days of Workcover or your employer’s self-insurer receiving the medical expert’s report.
The Notice of Assessment will, among other things, outline the following:
- the injuries accepted as part of the workers’ compensation claim;
- the degree of permanent impairment for your accepted injury(s);
- a monetary offer of lump sum compensation.
It is important to understand that you will only receive a monetary offer of lump sum compensation if you have been assessed as having a percentage of permanent impairment of 1% or higher.
The monetary offer is calculated in accordance with the Workers’ Compensation and Rehabilitation Act 2003.
Can I challenge the offer of lump sum compensation?
If you have sustained a physical injury and have been assessed for permanent impairment, you have 20 business days from the date of your Notice of Assessment to make a decision whether you agree or disagree with the assessment of permanent impairment.
If you choose to disagree with the Notice of Assessment, you can elect from the following options:
- You can elect for your injuries to be re-assessed by an alternative independent medical expert of your choice if Workcover or your employer’s self-insurer agree on the expert;
- You can elect to be re-assessed by the Medical Assessment Tribunal.
If you are re-assessed by an alternative independent medical expert and you further disagree with the assessment of permanent impairment upon receiving the new Notice of Assessment, you have a further 20 business days to elect to be re-assessed by the Medical Assessment Tribunal.
It is important to understand that any assessment from the Medical Assessment Tribunal is a final assessment, and you have no entitlement to disagree with the assessment provided.
In addition, there are potential risks and benefits of disagreeing with a degree of permanent impairment. If you disagree with your Notice of Assessment, you will receive a new Notice of Assessment and you will not be able to accept the first Notice of Assessment at a later date.
When your injuries are reassessed for a degree of permanent impairment, you will receive one of the following outcomes:
- a higher degree of permanent impairment;
- the same degree of permanent impairment;
- a lesser degree of permanent impairment.
If the 20 business days have lapsed and you have not responded to the Notice of Assessment, you will be taken to have agreed with the degree of permanent impairment as assessed.
Accepting or rejecting the lump sum offer of compensation
In addition to the above, you will need to make an election whether to accept or reject the Notice of Assessment.
Making an election on your Notice of Assessment is irrevocable and affects your rights to lump sum compensation or a common law claim (see below). It is, therefore, very important to understand the following:
- If you accept the Notice of Assessment, you will receive the lump sum compensation offered in the Notice of Assessment, but if your injuries are assessed with a permanent impairment of less than 20%, you will lose any entitlement to pursue a common law claim against your employer.
- If you reject the Notice of Assessment, you may have an entitlement to a common law claim but will not be able to accept the Notice of Assessment at a later stage.
We strongly recommend that you seek legal advice upon receiving a Notice of Assessment to ensure you protect your rights to lump sum compensation and, if eligible, common law damages.
Workers’ compensation common law claims (Queensland)
If you’ve been injured at work and you believe your employer’s negligence contributed to your injuries, you can sue for common law damages. A common law claim is in addition to your workers’ compensation statutory entitlements like weekly payments and medical expenses.
In Queensland, you will only have an entitlement to a common law claim against your employer if you have an accepted statutory workers’ compensation claim.
When you are offered statutory lump sum compensation under the Notice of Assessment, that offer is only based on your degree of permanent impairment for your accepted injuries. And remember, if you accept an offer of compensation in your Notice of Assessment, you may lose your entitlement to seek common law damages. It’s crucial that you seek legal advice before accepting any offer.
The lump sum compensation you can seek in a workers’ compensation common law claim can be significant as it takes into account, among other things, the following:
- permanent impairment;
- past and future economic loss;
- past and future loss of superannuation entitlements; and
- past and future medical, treatment, rehabilitation and travel expenses.
Generally, in Queensland, you have only three (3) years from the date the cause of action arose to commence a common law claim for personal injury. It is, therefore, important that you seek timely legal advice if you intend to pursue a claim.
Get help from a workers’ compensation lawyer
After a workplace injury, though it is stressful and overwhelming to consider how your injury may impact you into the future, it is important that you seek legal advice to understand your rights and entitlements to lump sum compensation, both under your statutory claim and under a common law claim. This compensation can assist with the shaping of your life moving forward and secure your financial future.
The Hall Payne workers’ compensation team is highly experienced in all aspects of workers’ compensation claims; both statutory entitlements and common law entitlements. We provide an initial free consultation for workers’ compensation inquiries, so it costs you nothing to find out where you stand.
Contacting Hall Payne Lawyers
You can contact us by phone or email to arrange your consultation; either face-to-face at one of our offices, by telephone or by videoconference consultation.
Phone: 1800 659 114
Email: general@hallpayne.com.au
This article relates to Australian law; either at a State or Federal level.
The information contained on this site is for general guidance only. No person should act or refrain from acting on the basis of such information. Appropriate professional advice should be sought based upon your particular circumstances. For further information, please do not hesitate to contact Hall Payne Lawyers.
Get in touch with today's blog writer:
Thomas Tognolini