Can I be terminated while on WorkCover?

Can I Be Terminated While on WorkCover? | Can an Employee Be Terminated While on Workers Compensation in Victoria?

Summary

You are not able to be terminated from your employment in Victoria just because you made a WorkCover claim or because you have an injury.

If an employer does terminate your job when you are on WorkCover there are legal avenues open to you.

A common question asked by injured workers is:

“Can I be terminated while on WorkCover?”

It’s easy to understand why people are concerned about this.

Many injured workers worry that making a WorkCover claim will put their employment at risk, particularly if they need time off work or are unable to return to their normal duties.

In our 2026 client survey, 85% of respondents indicated that losing their job was a concern when making their WorkCover claim.

The good news is that in Victoria, an employer cannot terminate your employment simply because you made a WorkCover claim or because you suffered a workplace injury.

However, there are circumstances where an employer may be able to terminate an employee who is on WorkCover.

This article explains:

  • Whether an employee can be terminated while on workers compensation
  • What protections exist for injured workers in Victoria
  • What happens after 52 weeks on WorkCover
  • Whether termination affects a WorkCover claim
  • What options may be available if you believe your dismissal was unfair

Can an employee be terminated while on WorkCover during the first 52 weeks?

Generally speaking, if you have an accepted WorkCover claim and are unable to perform your normal duties, your employer has an obligation to provide suitable employment for a period of up to 52 weeks, provided it is reasonable to do so.

This does not mean that an employer can automatically dismiss someone because they have suffered a workplace injury.

Nor can an employer lawfully terminate a worker merely because they have made a WorkCover claim.

During this period, employers generally have significant return to work obligations, including providing suitable duties where appropriate and facilitating a worker’s return to employment where possible.

If you suffer an injury at work and you have an accepted WorkCover claim, while you are on WorkCover the law says that the employer has a legal obligation to offer you suitable duties.

What suitable duties is depends upon what is appropriate given the nature of your injury.

It might mean a reduction in your hours or it could mean restricting some of the jobs that you actually do during your employment.

For example, it might mean a restriction on the amount of lifting that you can do or it might mean that you are not to bend and pick things up from the ground.

Can I be terminated while on WorkCover after 52 weeks?

Once you hit 52 weeks of WorkCover, the employer no longer has to offer you suitable duties.

It is at this point that the employer can look at terminating your employment.

In order to do so, they need to establish that you are not able to perform the inherent requirements of your pre injury role

Generally what happens is the employer will either request a medical report from you as to your fitness for work, or they will write directly to your doctor (with your consent), or they will arrange for you to be assessed by a doctor.

The employer is required to give consideration of any reasonable adjustment that might be able to be made to accommodate you.

You should be asked to respond to any allegation that you may not be able to fulfil the inherent requirements of your pre injury role before your employment is terminated.

It’s important to understand that the end of the employer’s obligation to provide suitable duties does not automatically mean your employment must come to an end.

The fact that the 52 week period has expired is only one factor.

The employer should still consider medical evidence, whether reasonable adjustments can be made, whether there are alternative positions available, and whether you are likely to regain the capacity to perform your role in the future.

 

If I am terminated while on WorkCover, does that mean my claim ends?

No.

One of the most common misconceptions among injured workers is that losing their job means they lose their WorkCover entitlements.

In most cases, that is not correct.

Even if your employment is terminated, your entitlement to WorkCover benefits may continue.

Depending on your circumstances, you may remain entitled to weekly payments, medical and like expenses, impairment benefits and potentially a common law claim.

This distinction is important because employment rights and WorkCover rights are separate legal issues.

 

Does termination impact my WorkCover claim?

If you are terminated from your employment, generally speaking there will be no impact on your WorkCover claim.

You’ll still be entitled to the payment of medical and like expenses and weekly payments (if the WorkCover insurer has not previously terminated your entitlement to these benefits).

You’ll also still be entitled to pursue an impairment benefit and if appropriate, a common law claim for damages.

What if I disagree with the decision to terminate me?

There are options open to you if you disagree with your employers decision to terminate your employment.

The most common legal option taken by people that have been dismissed is to pursue an unfair dismissal claim through the Fair Work Commission.

An unfair dismissal claim involves you alleging that the dismissal was harsh, unjust and unreasonable, not consistent with what’s called the small business fair dismissal code (if it is applicable) and not a case of a genuine redundancy.

If you are on WorkCover and have your employment terminated, to succeed in an unfair dismissal claim generally speaking you would need to show that there was no valid reason for terminating your employment.

This would primarily go to the issue of your ability to work not only at the moment, but also into the future.

For example, if you were terminated, you may be able to show that the dismissal was unfair if there was a report from your treating GP that the employer had when they terminated you that suggested in another few weeks you may be able to get back to your full unrestricted pre-injury job.

You may also potentially be unfairly dismissed if the employer did not give you a reasonable opportunity to respond to the allegation that you do not have a capacity and will not have a capacity to do your pre injury role.

In order to lodge an unfair dismissal claim, you need to complete the claim form which can be found on the Fair Work Commission‘s website.

This then gets sent to the Fair Work Commission who will then provide a copy to your ex-employer.

The ex-employer will then provide a written response, putting their position.

The matter will then be set down for a conciliation conference with a conciliator from the Fair Work Commission. This unfair dismissal conference generally occurs via the telephone.

Many unfair dismissal matters resolve at this conciliation.

However those that don’t, can continue on and be set down for a hearing before the Commission.

If you have been dismissed from your job and you think the dismissal was potentially unfair, then keep in mind that you have 21 days from the date the dismissal came into effect in which to lodge an unfair dismissal claim.

Is it a redundancy?

If you are terminated, keep in mind that you are entitled to be paid redundancy pay by your employer if your employment is terminated by the employer because they no longer require the specific job that you were doing to be done by anyone.

It’s important to distinguish a redundancy from a normal termination of employment.

With a normal termination of employment, you are being terminated from the job by the employer.

With a redundancy, the employer is saying that your job is no longer required to be done within the organisation (perhaps it might be absorbed by someone else). If this is the case, then you are entitled to be paid redundancy pay.

Frequently Asked Questions

Can I be terminated while on WorkCover in Victoria?

An employer generally cannot terminate your employment simply because you made a WorkCover claim or suffered a workplace injury.

However, in some circumstances an employer may be able to terminate employment if they can establish that you cannot perform the inherent requirements of your role.

Can an employee be terminated while on workers compensation?

Yes, termination can occur in some circumstances.

However, the employer must have a valid reason and follow a fair process.

The fact that a worker is receiving workers compensation benefits does not, by itself, justify termination.

Do I lose WorkCover if I lose my job?

Usually no.

A termination of employment will not automatically bring your WorkCover claim to an end.

Entitlements to weekly payments, medical expenses, impairment benefits and common law damages may continue depending on your circumstances.

Can I make an unfair dismissal claim if I was terminated while on WorkCover?

Potentially.

If you believe your dismissal was harsh, unjust or unreasonable, you may be able to pursue an unfair dismissal application through the Fair Work Commission, provided you meet the eligibility requirements and lodge your application within the applicable time limit.

 

 

Please keep in mind that the information contained on this page should not be considered legal advice and no content on this site should replace the need to obtain advice tailored to the specific facts of your case. The facts of a case can significantly alter the advice that can provided. This site only provides general advice. Read more here.

To contact Michael or Peter please visit the contact page.

This article was last reviewed and updated on August 28, 2026. This article was first published on May 17, 2021.

  • Michael

    This article was written by Michael who is a Victorian lawyer who practices in WorkCover and personal injury matters. He has 20 years of experience in personal injury matters. This article was written in collaboration with his colleague Peter. The Work Injury Site is where they publish WorkCover and work injury related information. Both Michael and Peter have a law firm that assists people across Victoria with their WorkCover and personal injury matters. You can read more about Michael here.

  • Peter

    This article was written by Peter who is a Victorian lawyer who practices in WorkCover and personal injury matters. This article was written in conjunction with his colleague Michael. The Work Injury Site is where they publish WorkCover and work injury related information. Both Peter and Michael have a law firm that assists people across Victoria with their WorkCover and personal injury matters. You can read more about Peter here.