Can I resign while on WorkCover?

Can I resign while on workers compensation

Yes, you can. However, you need to be aware that on some occasions your entitlements under the WorkCover scheme (Vic) may be impacted.

To ensure as much as possible that they are not, you should make it clear that the reason you are resigning is because of your work related injury (should that be the case).

Why are you resigning from your employment while on WorkCover?

Whether it is a good idea or not to quit your job while on WorkCover will depend upon your individual circumstances and whether you are receiving weekly payments of compensation from the WorkCover insurance company.

You should also carefully consider whether there is any real need to resign your position in the first place.

The relevant law in Victoria states that if you have resigned from your employment for reasons unrelated to your work-related incapacity, then the insurance company may seek to either terminate or reduce your weekly payment.

An example of this might be you decide to move to Sydney because you want to be closer to your relatives, and to do so, you resign your role.

If this occurred, the insurer could terminate your payments as the resignation was not due to your work injury.

Impact of resigning on other WorkCover entitlements

Resigning from your employment does not have any impact on your entitlement to the payment of medical and like expenses.

Likewise, it will not impact your entitlement to make an impairment claim or a claim for common law damages (both are lump sum claims).

How to resign from employment while on WorkCover

If you are intending to resign, and if it is because you feel you are not able, because of your injury or condition, to perform your pre injury role – you should ensure to make it clear that the reason you are resigning is because of your injury or condition.

Whether the injury relates to a physical incapacity, such as a back injury, or a psychological one, such as a condition related to workplace stress, it doesn’t matter. Just make sure to make it is clear at the time of resigning.

Sometimes when a person suffers an injury at work, they may not want to lodge a WorkCover claim at that point in time if they are still employed, for obvious reasons.

They may want to not do anything that jeopardises their job and sometimes, a WorkCover claim can be frowned upon by an employer.

A WorkCover claim after resignation

If you resign from your employment, you are able to lodge a WorkCover claim after resignation. Many people seem to believe that you must still be employed with the injury employer in order to lodge a WorkCover claim, but this is not the case.

The law in Victoria says that a WorkCover claim should be lodged as soon as possible after the injury occurs.

However, if you do not do this, it does not mean that you cannot lodge a WorkCover claim down the track and have it accepted.

Lodging your WorkCover claim as soon as possible after an injury occurred is ideal, however keep in mind that it is not strictly necessary.

What happens if my claim is accepted?

If your claim is accepted, then you will have an entitlement to the payment of medical and like expenses and potentially weekly payments (if claimed).

Your entitlement can be backdated to the date of injury.

Backdating of your income benefits is explained further here.

If you have medical expenses that you incurred after the injury but prior to the lodgement of the claim, you should ensure to submit these to the insurer for payment should you wish to be reimbursed.

If you do not have any receipts/accounts/invoices, consider contacting the provider and asking them to send any documentation relating to any consultations you’ve had with them, to the insurer.


It is possible to resign your job while on WorkCover. Resignation has no effect on your WorkCover statutory entitlements, other than potentially to your weekly payments. It is important though that you consider your individual circumstances and make sure that it is actually necessary for you to resign.

Then you need to be sure that the reason for resignation is your inability to do your job due to your work-related injury. Support from your treating doctors is important here too.

If you do decide to resign, make sure that it is very clear that the reason is the work-related incapacity. If you’re unsure what to do, please feel free to contact us to discuss your situation.

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 call 1800 746 442 or email [email protected].

Written by the Work Injury Site team