NSW Work Injury Claim

NSW Work Injury Claim

How Psychological Symptoms Can Affect a Work Capacity Decision

A work capacity decision should test sustainable work, not just a narrow physical capacity snapshot.

Key References & Legislation

Psychological injury evidence review with clinical notes, workplace chronology, and insurer decision papers.
Psychological injury files usually turn on chronology, diagnosis, work events, certificates, and insurer reasoning.
Reviewed by NSW Work Injury Claims - a branch of Stephen Young Lawyers

Quick answer

Psychological symptoms can affect whether work is sustainable

An insurer may say you have capacity because the physical restrictions allow light duties. That can be incomplete if anxiety, depression, sleep disturbance, pain-related fatigue, medication effects or fear of re-injury affect whether you can reliably attend, concentrate, interact and sustain the work.

The certificate of capacity, GP notes and treating reports should explain function in practical terms. A diagnosis alone is rarely enough. The key question is what the symptoms do to attendance, pace, concentration, reliability and safe return to work.

Where this comes up in weekly payment disputes

Suitable duties

Duties may look physically light but still be unsuitable if they trigger panic, pain flare-ups, poor sleep or fear of re-injury.

Earning capacity

A theoretical job may not be realistic if symptoms affect punctuality, reliability, training, interviews or regular attendance.

Rehab reports

Rehabilitation provider reports should record failed return-to-work attempts and psychological barriers, not just physical restrictions.

Evidence to focus on

The evidence should make the capacity issue concrete. It should not merely state that you are stressed. It should explain how the symptoms affect real work activities and why the proposed job is or is not sustainable.

  • Certificates of capacity that mention psychological symptoms and capacity impact.
  • GP notes about sleep, mood, anxiety, pain, medication and fatigue.
  • Psychologist or psychiatrist reports about treatment, diagnosis and work functioning.
  • Pain specialist or surgeon notes about chronic pain, recovery and restrictions.
  • Rehabilitation notes showing attendance problems, flare-ups or failed duties.
  • Income and hours records, such as pay slips, payslips, payroll summaries, rosters, tax records or bank records, where the weekly payment dispute also involves PIAWE, current earnings or assumed working hours.
  • Examples of days missed, reduced hours, concentration problems or inability to tolerate duties.

Common insurer assumptions to check

  • The insurer treats physical capacity as the whole capacity picture.
  • The proposed duties ignore pain flare-up patterns or sleep-related fatigue.
  • The earning capacity assessment assumes reliable attendance without evidence.
  • The insurer relies on a one-off IME rather than treating records over time.
  • The decision does not address psychological treatment, medication side effects or return-to-work anxiety.
  • The rehabilitation report records tasks but not sustainability.

Practical next steps

Ask your treating doctor to describe the work impact in plain terms: hours, duties, pace, social interaction, concentration, travel, recovery time and triggers. If the insurer has made a work capacity decision, compare the decision against the certificate, treating records and real job demands before responding.

This page is general information. Review deadlines and dispute pathways depend on the notice, the date served and the evidence already exchanged.

Frequently asked questions

Can anxiety after a work injury affect a work capacity decision?

It can, if the evidence shows anxiety affects sustainable attendance, confidence, concentration, interaction or safe return to work. The certificate and treating reports should explain the functional impact.

What if the insurer says I can do office work?

Check whether the proposed role is realistic. Sitting tolerance, pain flare-ups, medication effects, training needs, travel, anxiety, concentration and attendance can all matter.

Should psychological symptoms be on my certificate of capacity?

If symptoms affect work capacity, it is usually helpful for the certificate and treating notes to record them clearly. The wording should be accurate and based on medical assessment.

Can a rehabilitation provider ignore psychological symptoms?

A rehabilitation report should consider real barriers to sustainable work. If it focuses only on physical duties, treating evidence may be needed to correct the picture.

Can weekly payments be reduced if the insurer ignores psychological symptoms?

They may be reduced or stopped if the insurer finds capacity, but that decision may be disputed where the evidence does not support the assumptions used.

Related NSW workers compensation guides

Need help with a capacity decision that ignores psychological symptoms?

Send the work capacity decision, certificates of capacity, rehabilitation material and treating records. We can help identify the evidence gap and the safest response pathway.

This information is general in nature and is not legal advice. You should obtain advice about your own circumstances.

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