Practical review
What to check in this situation
- Classify the absence as sick leave, annual leave, long-service leave, temporary travel or a change of residence.
- Keep certificates, treatment and insurer appointments current and provide new contact details promptly.
- Ask payroll to show leave pay, hours worked and workers compensation separately.
Records that may help
Keep leave requests and approvals, payslips, Certificates of Capacity, treatment schedule, appointment notices, itinerary, address changes and written insurer communications.
Next procedural step
Confirm payroll and claim arrangements before leave or travel, and obtain advice before a permanent or lengthy overseas move or any disputed payment change.
What this means in practice
Plan first. Confirm leave with the employer, tell the insurer about material changes, maintain valid capacity evidence, arrange treatment and keep contact details current. If moving outside Australia rather than taking a short trip, obtain legal advice before departure because section 53 contains a specific rule for weekly payments.
Facts that can change the answer
| Issue | What changes the answer | Possible claim effect |
|---|---|---|
| Annual leave | Whether the worker remains employed, has an annual-leave entitlement and obtains employer approval for the dates. | Current Fair Work guidance says annual leave can accrue and be taken during NSW workers compensation. Payroll should identify leave pay and compensation separately. |
| Sick leave | Whether accrued personal leave pays more than the weekly compensation amount and whether the absence is a compensation period. | Current Fair Work guidance says sick leave may be used in NSW where it pays a higher amount, with accrued leave covering the difference. Sick leave does not generally accrue during the compensation absence. |
| Long-service leave | The applicable NSW Act, award, enterprise agreement or portable scheme, length of service and reason for absence. | Illness or injury absence may count as continuous service under the NSW Long Service Leave Act, but coverage and payment rules are fact-specific. |
| Treatment or insurer appointments | Whether the appointment is treatment, rehabilitation, an insurer-required work-capacity assessment or an IME. | Reasonable travel may be reimbursable. SIRA Guidelines require insurers to meet reasonable costs, including wages, for certain required work-capacity appointments; ordinary treatment time is not automatically paid as working time. |
| Temporary overseas holiday | Length, purpose, treatment plan, certificate dates, capacity and ability to attend required appointments. | A holiday does not itself decide entitlement, but inconsistent activity, missed evidence or inability to participate can create disputes. |
| Moving interstate or overseas | Whether only the home address changes, whether employment changes, and whether the worker ceases to reside in Australia. | An interstate move requires updated contact and treatment arrangements. Section 53 imposes a specific test if the worker ceases to reside in Australia. |
How the NSW rules apply
Section 130 of the Fair Work Act restricts taking or accruing leave during a compensation period unless the relevant compensation law permits it. Current Fair Work guidance states annual leave can accrue and be taken while receiving NSW workers compensation. Awards, agreements and individual circumstances still need checking.
Current Fair Work guidance also says a NSW worker can use accrued sick leave if the sick-leave payment is higher than the workers compensation amount, with the sick leave paying the difference. Sick leave does not generally accrue while the worker is absent and receiving workers compensation. Payroll records should show each component rather than replacing compensation with an unexplained leave deduction.
NSW long-service leave is a separate employment entitlement. Current NSW Industrial Relations guidance says an absence because of illness or injury does not break continuous service and counts as service under the Long Service Leave Act for workers covered by that Act. Other industrial instruments or portable schemes may apply instead.
Reasonably necessary treatment and related travel can be compensable. Keep kilometre records and receipts, and obtain pre-approval where required. Whether an employer must pay ordinary wages for time at a treating appointment is a separate employment issue and should not be assumed.
Section 53 of the Workers Compensation Act addresses a worker who ceases to reside in Australia. Weekly payments generally cease unless the statutory permanent-incapacity requirement is satisfied, with continuing proof requirements. A short holiday is not necessarily the same as ceasing residence, but the facts should be reviewed before a long or permanent move.
Practical precautions
- Ask the employer to confirm leave approval and how leave pay will appear on the payslip.
- Tell the insurer about changed address, contact details, treatment providers and any inability to attend an arranged appointment.
- Do not let a Certificate of Capacity expire while away. Arrange a lawful review and provide the certificate on time.
- Keep travel plans consistent with medical restrictions and record context for activities that could be misunderstood.
- Before moving overseas, obtain advice about section 53 rather than relying on an informal statement from a case manager.
Documents and records to keep
- Written leave request and employer approval.
- Leave balances and payslips separating sick, annual or long-service leave from weekly compensation.
- Current and upcoming Certificates of Capacity.
- Treatment schedule, referral, insurer approval and provider contact details.
- Appointment notices, kilometre log, transport and accommodation receipts.
- Travel itinerary, departure and return dates, and written notice to the insurer.
- For a move: new address, treating arrangements and evidence about whether Australian residence continues.
What to disclose and to whom
- Tell the employer about leave in the usual way and give the insurer information that materially affects treatment, capacity, appointments, address or weekly payments.
- You do not need to narrate every private holiday activity. However, relevant questions should be answered honestly and records should explain activities that may appear inconsistent with certified restrictions.
- If a required appointment cannot be attended, contact the organiser promptly and request a reasonable alternative rather than simply failing to attend.
Practical next steps
- Identify whether the proposed absence is annual leave, long-service leave, unpaid leave, a short holiday or a change of residence.
- Check certificates, treatment and insurer appointments across the proposed dates.
- Confirm payroll treatment and reimbursement arrangements in writing.
- Seek advice before a long overseas stay, permanent move or disputed reduction in payments.
Illustrative scenario
A short overseas trip during treatment
A worker with certified capacity for sedentary duties seeks two weeks of annual leave to visit family overseas. Physiotherapy is rearranged, the certificate covers the period and the insurer is given travel dates. The worker remains resident in Australia and returns as planned.
- The annual-leave payment and workers compensation should be identified accurately on payroll records.
- The temporary trip is not automatically the same as ceasing to reside in Australia under section 53.
- The worker should still comply with reasonable claim requirements and retain records explaining treatment arrangements and capacity.
- This example does not determine another worker’s entitlement or whether a particular trip is reasonable.
Common questions
Can I take annual leave while on workers compensation in NSW?
Current Fair Work guidance says annual leave can accrue and be taken during NSW workers compensation. Confirm the dates and payroll treatment with the employer and keep the insurer informed of relevant claim changes.
Can I use sick leave while receiving workers compensation?
Current Fair Work guidance says accrued sick leave may be used in NSW where it pays more than workers compensation, with sick leave covering the difference. Ask payroll for a written breakdown because sick leave does not generally accrue during a workers compensation absence.
Can I travel overseas while receiving weekly payments?
A temporary trip does not automatically end payments, but duration, residence, capacity, certificates, treatment and appointments matter. Section 53 applies if a worker ceases to reside in Australia.
Can I move interstate during the claim?
Moving within Australia does not by itself decide the claim. Update contact details, arrange treatment and certificates, and consider whether a new job or jurisdiction issue also arises.
Who pays me for time spent at medical appointments?
Treatment and travel may be compensable, but ordinary wages for appointment time depend on the appointment type and employment arrangements. SIRA has specific cost rules for certain insurer-required work-capacity appointments.
Related NSW workers compensation guides
Where separate advice may be needed
Leave, payroll and residence questions can involve employment, tax, migration and social-security law beyond workers compensation. Obtain advice for long-term travel or relocation.
A life change is affecting your claim?
Send the relevant insurer decision, current Certificate of Capacity and a short timeline. We can review the NSW workers compensation issue and whether ILARS funding may be available, subject to eligibility, merits and IRO approval.
Legal service provider
NSW workers compensation help from Stephen Young Lawyers
NSW Work Injury Claim is the workers compensation service of Stephen Young Lawyers. Stephen Young Lawyers provides the legal service. Stephen Young Lawyers.
Stephen Young Lawyers was established in 2012. The firm is led by Stephen Young, Principal Solicitor and Accredited Specialist in Personal Injury Law.
Workers across New South Wales can arrange telephone or video appointments. In-person appointments can be arranged at the Sydney office when appropriate.
NSW Work Injury Claim enquiries: (02) 7233 3661
- Content publisher:
- NSW Work Injury Claim
- Published:
- Last legally reviewed:
Key legal sources
- Workers Compensation Act 1987 (NSW)
- SIRA workers compensation
- IRO legal assistance for injured workers
- Personal Injury Commission
- Fair Work Ombudsman: annual and sick leave during workers compensation
- Fair Work Act 2009 (Cth), section 130
- NSW Industrial Relations long-service leave guidance, 2026
- SIRA medical, rehabilitation and treatment travel guidance
- Workers Compensation Act 1987 (NSW)
- Workplace Injury Management and Workers Compensation Act 1998 (NSW)
- SIRA Workers Compensation Guidelines, current from 1 July 2026
This information is general in nature and is not legal advice. You should obtain advice about your own circumstances.
This page provides general information about NSW workers compensation. It is not legal, tax, financial, social-security, migration or medical advice. The result depends on the evidence, the applicable law and the worker’s individual circumstances.