As an employer in Queensland, it’s important to understand what the end of an employee’s workers compensation claim means for your business, how to meet your legal obligations, and how to support your employee’s recovery and return to meaningful work.

This detailed guide outlines what to expect, key responsibilities, and best practice strategies for managing the end of a Workers compensation claim.

Understanding the workers’ compensation claims process

Navigating the workers’ compensation claims process in Queensland involves several important steps to ensure that injured workers receive the support and compensation they are entitled to. If a worker suffers a work-related injury or illness, the first step is to report the incident to their employer as soon as possible. Seeking prompt medical attention and obtaining a medical certificate is also essential to support the claim.

Once notified, the employer or the worker can submit a claim for workers’ compensation to the workers compensation insurer. The workers’ compensation regulator will then assess the claim, considering the nature of the injury or illness and its connection to work. If the claim is accepted, the worker may be eligible for wage payments, coverage of medical expenses, and access to rehabilitation treatment to aid their recovery.

In cases where the worker is suffering severe financial hardship, there may be additional avenues for financial support. This can include negotiating loan agreements, accessing mortgage or loan agreements with disability insurance, or seeking assistance from Centrelink. It’s important for both workers and employers to understand their legal rights throughout the claims process and to communicate openly with the workers’ compensation insurer for guidance.

1. Understand why the workers’ compensation claim has ended

The worker’s compensation insurer is responsible for administering statutory claims for work-related injuries or illnesses. When a claim is finalised, you will receive written communication explaining the outcome. Understanding the reason behind the closure is vital in determining your next steps.

Common reasons a claim may end:

The injury has stabilised: The worker’s condition has reached maximum medical improvement (MMI), meaning no further treatment will improve their condition. Once the worker’s injuries are assessed as stable, the worker’s compensation

insurer’s obligations to provide wage payments and rehabilitation funding may change.

Return to work is achievable: The worker has been deemed fit for either full or partial duties, prompting the worker’s compensation insurer to cease weekly benefits.

The claim was rejected: The worker’s compensation insurer may find that the workplace injury or work injury is not compensable, for example, it didn’t arise out of, or in the course of, employment, or was lodged outside the statutory time limits.

Injuries assessed and lump sum offer: When the worker’s injuries are assessed for permanent impairment, a lump sum offer may be made based on the degree of impairment determined during the evaluation.

Employer actions:

• Review the closure letter carefully.
• Clarify your worker’s capacity status with the treating doctor or the worker’s compensation insurer case manager.
• If the claim was rejected, assist the employee in understanding the review process, but avoid giving legal advice unless you’re qualified.

2. Support employees in accessing financial help

When compensation ends, your employee may experience financial stress, particularly if they’re not yet ready to return to work. It is important that they review their overall financial situation and consider all available support options. Being aware of alternative financial support channels can help you guide them toward appropriate services, demonstrating duty of care and helping maintain morale.

Employer actions:

• Avoid offering financial advice, but refer workers to qualified financial counsellors or Centrelink..
• Promote employee assistance programs (EAPs) for workers experiencing financial stress or anxiety.
• Check employment contracts to see if income protection policies or disability insurances are included as benefits.

3. Prepare for review or legal appeal processes

Some employees may wish to challenge the worker’s compensation insurer’s decision. Employers must remain impartial and cooperative if a review or appeal is

lodged. The worker’s compensation insurer’s obligation to maintain wage payments generally ends when the claim is finalised, but these payments may be reinstated if a review or appeal is successful.

Workers’ legal options include:

• Requesting an internal review: Workers have three months to apply to the Workers’ Compensation Regulator to review the worker’s compensation insurer’s decision. This is a document-based process where both the worker and the worker’s compensation insurer submit evidence.
• Escalating to court: If the worker is not satisfied with the Regulator’s decision, they may appeal to the Queensland Industrial Relations Commission or a relevant court.

Employer actions:

• Cooperate fully with information requests from the Regulator or courts.
• Maintain accurate records of injury reports, treatment, communication, and RTW attempts.
• Engage your HR or legal team for support if your business is formally involved in proceedings.

4. Develop a clear, compliant return-to-work (RTW) plan

A return-to-work plan is essential when a worker has some capacity to work, even if their claim has ended. Under Queensland’s Workers’ Compensation and Rehabilitation Act 2003, employers must provide suitable duties where possible. Rehabilitation provided as part of the return-to-work process is crucial, as it typically includes medical and rehabilitation treatment aimed at supporting the worker’s recovery.

Components of a strong RTW plan:

• Medical clearance or functional assessment to determine capacity.
• Modified duties that align with physical and psychological restrictions.
• Graduated hours or tasks to ease the worker back into a routine.
• Work programs that support occupational rehabilitation and facilitate a safe return to work.
• Regular reviews to monitor progress and adjust as needed.

Employer actions:

• Engage your Worker’s compensation insurer case manager or rehabilitation provider to help develop the RTW plan.
• Offer training or re-induction if duties differ from their original role.
• Use a suitable duties register or job task analysis to match capabilities to work tasks.
• While employers should support return to work, they are not always obligated to find worker alternate employment if suitable duties are not available.

5. Promote long-term recovery and mental health support

The psychological effects of injury and claim closure are often underestimated. Employers have a duty to support psychological health under Queensland WHS legislation and should adopt a proactive approach.

Supportive actions include:

• Connecting the employee to mental health services, such as Beyond Blue, Lifeline, or a workplace EAP.
• Fostering open conversations about anxiety, depression, or fear related to work.

If the injury results in a permanent impairment, consider whether:

• The employee qualifies for redeployment.
• There’s an opportunity for upskilling or vocational training.

6. Work with experts for compliance and support

Managing workers’ compensation outcomes is complex. Working with trusted professionals can reduce risk and ensure your business meets legal and ethical obligations.

Business Chamber Queensland can help with:

• Drafting or reviewing Return-to-Work Plans and suitable duties.
• Providing training on managing injured workers and preventing disputes.
• Advising on compliance with WorkCover Queensland, Fair Work, and WHS laws.
• Supporting managers with difficult conversations and reintegration strategies.

The end of a workers’ compensation claim is not the end of your responsibilities as an employer. In Queensland, supporting your employee through recovery, maintaining compliance, and planning for the future are essential steps.

By understanding the reasons for claim closure, helping employees access financial or legal support, and focusing on safe return-to-work pathways, you can uphold your duty of care, reduce risk, and retain valuable employees.