Psychological Injury Claims in Victoria: Can You Still Claim WorkCover for Stress, Burnout or Workplace Bullying?

Crownmark Lawyers | Personal Injury

Psychological injuries can have a significant impact on a person’s ability to work, maintain relationships and manage everyday life. Workplace stress, burnout, bullying, harassment and exposure to traumatic events can all contribute to mental injury.

However, changes to Victoria’s WorkCover scheme have altered the eligibility requirements for psychological injury claims.

For mental injuries sustained on or after 31 March 2024, the rules are more restrictive, particularly where a claim relates to ordinary workplace stress or burnout.

Understanding the distinction between general workplace pressures and compensable psychological injury is important before making a claim.

What Is Considered a Mental Injury Under WorkCover?

Under Victoria’s current WorkCover framework, a mental injury must meet specific requirements before compensation may be available.

The injury must:

• cause significant behavioural, cognitive or psychological dysfunction;

• be diagnosed by a medical practitioner in accordance with the relevant diagnostic criteria; and

• in the case of a primary mental injury, have predominantly arisen out of or in the course of employment.

  
  

This means experiencing stress, anxiety or difficulty at work does not automatically establish an entitlement to WorkCover compensation.

What Does “Predominantly Caused by Employment” Mean?

One of the most significant changes is the requirement for employment to be the predominant cause of a primary mental injury.

In practical terms, employment must be the strongest or largest contributing cause of the psychological injury when compared with other contributing factors.

A claim may involve consideration of matters such as:

• workplace incidents or conduct;

• medical and psychological evidence;

• previous mental health conditions;

• personal circumstances;

• the timing and development of symptoms; and

• other factors that may have contributed to the condition.

  
  

Each claim will depend on its individual circumstances and supporting evidence.

Can You Claim WorkCover for Workplace Stress or Burnout?

Not every psychological injury caused by workplace stress or burnout will qualify for compensation.

Under the current rules, a worker will generally not be entitled to compensation where their mental injury is predominantly caused by stress or burnout arising from events that are considered usual or typical and reasonably expected to occur in the course of their duties.

This may include ordinary workplace pressures such as workload demands and certain interpersonal interactions.

However, the circumstances surrounding the injury matter. An experience being described as “stress” or “burnout” does not, by itself, determine whether a WorkCover claim will succeed.

What About Workplace Bullying, Harassment or Discrimination?

Workplace bullying and harassment are treated differently from ordinary workplace pressures.

Unreasonable behaviour including bullying, harassment and discrimination is not considered an event that workers should ordinarily be expected to experience as part of their employment.

A psychological injury predominantly caused by this type of conduct may therefore remain compensable, provided the other requirements of Victoria’s WorkCover legislation are satisfied.

Examples may include circumstances involving:

• repeated unreasonable behaviour;

• intimidation or threatening conduct;

• harassment;

• discriminatory behaviour;

• ongoing targeted conduct; or

• other unreasonable workplace behaviour causing psychological harm.

  
  

Whether particular conduct legally amounts to bullying, harassment or another relevant workplace event will depend on the facts and available evidence.

What About Psychological Injuries Caused by Traumatic Events?

There are also important protections for workers exposed to traumatic events.

This can be particularly relevant to workers whose occupations regularly involve exposure to distressing or traumatic circumstances.

A psychological injury arising from stress or burnout associated with traumatic events may still qualify for compensation, even where exposure to those events is an expected part of the worker’s duties.

The nature of the event, the worker’s duties, medical evidence and the connection between the employment and injury will all be relevant.

Can You Receive Treatment While a Mental Injury Claim Is Being Assessed?

Eligible Victorian workers who lodge a mental injury claim may be able to access provisional payments for reasonable treatment and services for up to 13 weeks, even while liability for the claim is being determined.

This can provide earlier access to appropriate mental health treatment rather than requiring a worker to wait until the entire claim has been determined.

Eligibility requirements apply. 

Speak With Crownmark Lawyers

Victoria’s psychological injury WorkCover laws have become more complex, particularly following the changes applying to mental injuries sustained on or after 31 March 2024.

Whether a claim involving workplace stress, burnout, bullying, harassment or trauma is compensable will depend on the particular circumstances, the cause of the injury and the available medical and workplace evidence.

If you have suffered a psychological injury connected with your employment, obtaining advice early can help you understand your position, your options and the next step.

Contact Crownmark Lawyers to arrange a consultation.

 Harjit Mahindroo

 Managing Partner

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