Workers compensation payments

Weekly payments

Once your employer receives your claim for compensation, they must start making weekly payments of compensation if you have been certified as totally or partially incapacitated for work. There are two options:

  • where your first pay day is within 14 days of lodging your claim, weekly payments must start on this pay day (if it is not reasonably practicable to do this, payment must be made no later than 14 days after the employer received the claim), or
  • where your first pay day is more than 14 days after lodging your claim, weekly payments must start on this pay day (this usually happens where workers are paid monthly).

Your employer must also start paying for medical and associated expenses up to $5,000, unless they think the claimed expenses are unreasonable or unnecessary.

These payments are to start regardless of whether the employer disputes liability for your claim.

Backdating pay

If you lodged your claim:

  • within 14 days of your injury, weekly payments must be paid from the date of injury
  • more than 14 days after your injury, you are only entitled to be back paid weekly payments to 14 days before the date you lodged your claim.

If you initially took ‘sick leave’ for this period, your employer must re-credit it.

Medical expenses

Your employer is liable for the cost of all reasonable expenses you necessarily incur for:

  • medical services
  • hospital services
  • household services, for the proper running and maintenance of your home (such as cleaning, laundry and gardening)
  • nursing services
  • constant attendant services, including the constant or regular personal attendance on you provided by someone who is not a member of your family (for example, to shower, dress or feed you)
  • rehabilitation services
  • ambulance services.

Medical accounts

When you receive an account for a medical or other expense, you must forward this to your employer within 7 days.

Once your employer receives the account, they must forward it to their insurer within 7 days.

Your employer must:

  • pay an account within 28 days of receiving it or advise you in writing why it will not be paid
  • notify the person/business that generated the account of why it will not be paid.

Travelling expenses

Your employer is liable to pay reasonable expenses for you to travel to any medical, hospital or rehabilitation service or to attend any medical examination organised by your employer.

The amount payable for using a private vehicle is calculated with the occasional user rates set out in the Tasmanian State Service Award.

Annual leave and long service leave while on workers compensation – FAQs

The topic of annual leave while receiving workers compensation benefits is a complex one. We have put together a list of Frequently Asked Questions (FAQs) that may help you with any questions you might have.

Can I take annual leave or long service leave while I am receiving workers compensation?

Yes. If you would normally be entitled to annual leave or long service leave under your employment contract, you may choose to take that leave during a period when you are unfit for work and receiving workers compensation. This must be done by agreement with your employer. Remember to continue to provide a certificate of capacity during the leave period.

If I take annual leave or long service leave during my incapacity, do I still receive workers compensation payments?

No. If you choose to take annual leave or long service leave during a period of incapacity, you will be paid your normal leave pay by your employer. You will not receive weekly workers compensation payments for the period of leave taken. As you are being paid your normal leave pay, ‘step downs’ to your pay are not applied.

Do I have to take my annual leave or long service leave while I am on workers compensation?

No. You are not required to take annual leave or long service leave while you are receiving workers compensation. The law specifically prevents employers from attempting to cause or require a worker to take annual leave or long service leave while they are receiving workers compensation.

What happens if I do not (or cannot) take my leave while I am incapacitated?

If you do not take your leave during your period of incapacity or cannot take it due to your injury, then your employer must instead provide you with an equivalent period of paid leave:

  • within 3 months of your return to work; or
  • if you do not return to work, when your entitlement to workers compensation ends.
  • This replacement leave must be on full pay for annual leave and on full or part pay for long service leave, depending on your original entitlement.
Do workers accrue annual leave while receiving workers compensation in Tasmania?

Not always.

The Workers Rehabilitation and Compensation Act 1988 does not deal with the accrual of annual leave. Whether annual leave continues to accrue depends on the industrial instrument or employment arrangements that apply to the worker, such as an award, enterprise agreement, or employment contract.

The information below offers some guidance.

What if I work under a Fair Work Australia award or enterprise agreement?

Workers working under a Fair Work Australia award or enterprise agreement do not accrue annual leave while they are receiving workers compensation payments (this is the situation for most Tasmanian workers).

What if I am not working under a Fair Work Australia award or enterprise agreement?

If you are not working under a Fair Work Australia award or enterprise agreement, your entitlement to accrue annual leave while receiving workers compensation will depend on the specific terms of your applicable agreement or employment contract.

What about Tasmanian State Service employees?

Tasmanian State Service employees are not covered by Fair Work Australia awards. Whether annual leave accrues during periods of workers compensation is determined by the leave entitlements set out in the relevant award, in accordance with section 38 of the State Service Act 2000.

What if I don’t know what award or enterprise agreement I’m employed under?

If you are unsure which of the above answers applies to you, you should speak to your employer and/or contact the Fair Work Ombudsman for more information about the award or enterprise agreement that applies to you.

What if I’m on a return-to-work plan and I am working some hours

If you are partially back at work, then you do accrue leave for the time that you are at work.

Last updated: 25 June 2026
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