Overview
How this affects your claim in practice
Resignation, dismissal or redundancy does not automatically end an accepted NSW workers compensation claim. Weekly payments, treatment and other statutory benefits must still be assessed under their own rules. Employment ending can nevertheless change current weekly earnings, the availability of suitable duties and the evidence used in a work capacity decision, so the reason and effective date of the departure matter.
Before resigning, check the current Certificate of Capacity, available duties, insurer decisions and any proposed release. After dismissal or redundancy, keep supplying capacity evidence and ask for a written reason for any payment change. Workers compensation rights and employment-law remedies use different tests, forums and time limits; neither should be assumed from the other.
- Keep the resignation, dismissal or redundancy documents and the complete chronology leading to them.
- Do not assume the employment decision and workers compensation entitlement are the same legal issue.
- Continue supplying current capacity and treatment evidence to the insurer.
- Obtain advice before signing a release, settlement or statement that describes why employment ended.
Practical review
What to check in this situation
- Separate the employment decision from the insurer decision about liability, weekly payments or treatment.
- Record why employment ended, the last day worked, final earnings and every suitable-duties discussion.
- Check whether a release, resignation wording or new job changes earnings evidence without assuming the claim ends.
Records that may help
Keep the resignation, dismissal or redundancy letter, employment contract, final payslip, leave and notice breakdown, Certificates of Capacity, duties proposals, rosters and insurer notices.
Next procedural step
Notify the insurer of the employment and earnings change, request any revised weekly-payment calculation in writing and obtain prompt advice where several legal rights may be affected.
Separate the employment decision from the compensation decision
An employer decides whether employment continues. An insurer decides liability and statutory benefits under workers compensation law. The two decisions can affect one another as evidence, but one does not automatically determine the other.
After employment ends, the insurer may examine current weekly earnings, work-search activity, vocational evidence and suitable employment. Treatment and an accepted injury can continue to be relevant even though the pre-injury job no longer exists. Obtain each insurer decision in writing rather than assuming payments ended because the employer ended the job.
What to check in the employment documents
| Issue | Records to compare |
|---|---|
| Reason employment ended | Termination letter, redundancy notice, resignation, meeting notes and stated effective date. |
| Connection with injury | Certificates, absence records, performance material, employer emails and the chronology before the decision. |
| Final pay | Payslip, leave payout, notice payment and separation certificate; these are not automatically the same as weekly compensation. |
| Continuing capacity | Current Certificate of Capacity, treatment restrictions, work attempts and vocational evidence. |
| Insurer response | Any section 78 notice, work capacity decision, weekly-payment calculation or request for job-search information. |
Relevant NSW workers compensation principles
SIRA states that dismissing a worker because of a work-related injury within six months after the worker first became unfit for employment as a result of the injury is an offence. The precise protection, any reinstatement process and other employment-law rights depend on the facts and should not be treated as a general guarantee that dismissal is invalid.
Section 49’s suitable-work obligation has exceptions where the worker voluntarily left employment or employment was terminated for reasons unrelated to the injury. That affects the employer’s suitable-work obligation. It does not, by itself, decide the separate statutory entitlement to weekly payments, treatment or permanent impairment compensation.
Before resigning
A worker may have sound personal or medical reasons for leaving, but the wording and timing can later be used in disputes about suitable work, earnings or causation. Before resigning, obtain the current medical position, ask what duties and hours are actually available, and understand any insurer decision already in force.
Do not sign a document stating that the injury has resolved, that all duties are suitable or that no compensation issue remains unless that is accurate and the consequences are understood. A general employment release can raise separate legal questions outside workers compensation.
Immediate steps after employment ends
- Send the insurer the termination, redundancy or resignation document and confirm the last day worked.
- Keep Certificates of Capacity current and provide them directly to the insurer.
- Request a written explanation for any change to weekly payments.
- Record final wages, leave payments, notice pay and any new earnings separately.
- Keep a dated account of suitable duties discussed or attempted before employment ended.
- Obtain advice promptly if the stated reason appears connected with injury or incapacity.
Illustrative example
A retail worker with certified reduced hours is made redundant during a store closure. The redundancy does not itself prove that the worker has recovered or lost all weekly-payment entitlement. The insurer may still examine capacity and earnings, while the worker should preserve the closure notice, rosters, final pay records and current medical restrictions. A different case, where an individual worker is dismissed shortly after disclosing restrictions, may raise additional factual and employment-law issues. These examples do not predict an outcome.
When review or legal advice may be useful
Advice may be useful where weekly payments change, the insurer says suitable employment is available, the employer’s reason appears linked to the injury, a release is proposed, or the worker is unsure whether resignation will affect the claim. Workers compensation, unfair dismissal, discrimination and contractual issues have different forums and time limits.
ILARS may fund approved workers compensation legal work for an eligible injured worker, subject to assessment and IRO approval. It does not automatically fund every employment-law issue arising from the end of employment.
Official sources
Sources are listed for transparency. This guide is general information only and is not legal advice.
Frequently asked questions
Does resigning end my workers compensation claim?
Not automatically. It can affect the employer’s suitable-work obligation and the evidence about earnings or capacity, but liability and each statutory benefit still require their own analysis.
Can my employer dismiss me while I am injured?
SIRA identifies a specific NSW offence concerning dismissal because of work injury within six months after first becoming unfit. Other dismissals and employment rights depend on the facts and may involve separate laws and short time limits.
Will redundancy stop weekly payments?
Redundancy alone does not decide the calculation. The insurer may assess capacity, current weekly earnings and suitable employment. Ask for any payment decision and its reasons in writing.
Does ILARS cover an unfair dismissal case?
ILARS concerns approved NSW workers compensation legal assistance. It should not be assumed to fund a separate employment-law proceeding.
Has employment ended while the claim is continuing?
Provide the employment letter, current certificate, recent payslips, duties proposals and any insurer notice. We can assess the workers compensation consequences and whether funded legal assistance may be available, without assuming a separate employment-law outcome.