Compensation for Psychological
Workplace Injuries

Psychological and Mental
Stress Injury WorkCover
Claims in Victoria

What psychological workplace injuries can I claim compensation for?

For an injured worker to receive compensation for a psychological injury, they must now have a diagnosed mental injury from a licensed medical practitioner. Some common types of conditions that we regularly deal with include:

• Depression
• Anxiety
• PTSD
• Adjustment Disorders
• Chronic Pain Disorders

Insurers will assess the circumstances that led to the injury, and they must find that work was the predominant or main cause of the psychological injury (or aggravation of a pre-existing psychological injury).

Unfortunately, psychological WorkCover claims will not be accepted if a condition arises as a result of negative but reasonable performance management by an employer. This includes things like:

• Failure to get a promotion.
• Failure to get a wage increase.
• Failure to get a transfer upon request.
• Discussions around underperformance, tardiness, or poor attendance.

However, if a psychological injury results from these types of discussions, medical expenses for counselling and/or medication may still be available for up to 13 weeks despite the claim being rejected by the Insurer.

We note that a WorkCover claim may still be lodged for the above situations if the employer has addressed these types of issues in an unreasonable manner.

Workplace Modernisation Scheme

On the 31^st of March 2024, the Victorian government made changes to WorkCover Legislation via the WorkCover Scheme Modernisation Act 2024.

These new changes are outlined below:

• A new definition of mental injury has been outlined.
• A Medical practitioner (not a psychologist) must make a specific diagnosis of the mental injury suffered in accordance with the Diagnostic and Statistical Manual of Mental Disorder (DSM).
• The Mental injury must arise due to work being the predominant cause of the mental injury rather than just a significant contributing factor towards it.
• A WorkCover claim will not be accepted for claims due to work-related stress or burnout which is typical or could reasonably be expected during normal work duties.

We note that WorkCover stress claims are still allowed for workers who experience traumatic events in the course of their usual employment (such as first responders etc).

There is also no change to the ability to make bullying claims, so long as a worker is exposed to repeated unreasonable behaviour that is likely to cause a risk of mental harm.

You can read a more in-depth breakdown of these WorkCover Modernisation Changes on our blog.

How do I prepare for a psychological workplace injury claim?

To make the claim process as smooth as possible, there are several things that you can do to assist. When you first start to feel concerned:

Keep copies of any communications to/from your employer where you have sought help or made a complaint about the behaviour directed towards you.

Report the psychological injury to your employer.

Explain to the employer what circumstances are causing you mental harm.

Tell your doctor that work is causing you stress and explain why.

Keep copies of any documents/emails that contain inappropriate or bullying behaviour.

Document the names, times, and circumstances where inappropriate behaviour has occurred.

When you get to the point that you wish to make a WorkCover claim

Talk to your GP about whether you have a diagnosable mental health illness.

Obtain a WorkCover Certificate of Capacity (medical certificate) from your GP.

Talk to a lawyer about your potential claim.

Lodge a Workers Injury Claim form upon your employer (along with the medical certificate).

Please make sure to keep copies of both the claim form and the medical certificate. This way you can keep the copies on hand after you have handed the originals off to your employer or insurer.

We would recommend that you seek legal advice before you complete your Workers Injury Claim form as the wording on this form will be used extensively throughout your claim.

What happens after I lodge my WorkCover claim?

Once you have lodged your Workers Injury Claim Form with your employer, they have 10 days to forward the claim to their insurer.

The Insurer then has 28 days to determine whether they will accept the claim or not. Unfortunately, you will need to use your annual leave or sick leave during this waiting period in order to be paid. Once your claim is accepted, this leave should however be re-credited.

During this time they may arrange:

• An assessment by an Independent Medical Examiner (IME) who is a psychiatrist.
• An investigator may contact you to take a statement.
• The investigator may contact your workplace to take statements about your injury circumstances.
• Surveillance may be conducted to see what activities you are engaged in.
• The investigator may look at your social media pages.

Once the Insurer has received your claim you should receive a letter that approves funded provisional psychological medical treatment for at least 13 weeks.

Once the Insurer decides regarding your claim you will receive a notice advising whether your claim has been accepted or rejected. If the claim is rejected, you should seek immediate legal advice to determine if you can appeal this decision.

If your claim is accepted, you will need to:

• Provide ongoing certificates of capacity every 28 days to your employer and Insurer to ensure that you get paid whilst you are incapacitated for work.
• You should provide your WorkCover claim number to any medical treaters so they can invoice your Insurer directly.
• You can send in any invoices for expenses incurred during the approval waiting period for reimbursement.
• You will need your GP to write to the Insurer seeking pre-approval before you seek any referral or treatment (such as medication, seeing a psychologist or psychiatrist) throughout the course of your claim.

For more detailed advice about your potential entitlements please contact Zaparas Lawyers to arrange an appointment.

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At Zaparas Lawyers, we have over 40 years of experience in Workers’ Compensation Claims. Our WorkCover Lawyers will be able to maximise the benefits you receive.


Every claim is important to us. Our dedicated team of WorkCover specialists will approach your claim with skill, knowledge, and care. Your file will be conducted by a lawyer who specialises and has experience in WorkCover claims.


Our dedicated WorkCover Lawyers can guide you through the process and help make a claim for a benefit at the time you need it most.


We are committed to doing everything in our power to make the legal process as straightforward and stress-free as possible and we will fight to get the best outcome.


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