If you have been injured at work and are receiving workers compensation, you may be wondering whether you are legally allowed to change jobs during your claim. In Western Australia, injured workers are not required to remain with their current employer while receiving compensation payments. Workers compensation exists to support your recovery and financial wellbeing, not to restrict your employment choices.
Changing jobs while on a claim is possible, but it can affect your weekly payments and medical entitlements. Since compensation payments are based on your pre-injury earnings, moving to a new role may trigger a review of your payments. Seeking advice from a qualified workers compensation lawyer in Western Australia is strongly recommended before making any employment decisions.
Key Takeaways
- Injured workers in WA are not legally required to stay with their current employer
- You can change jobs and still retain your workers compensation entitlements
- Weekly payments may be adjusted to reflect income earned in a new role
- Medical entitlements may continue even after changing employers
- Always obtain an updated Certificate of Capacity before starting a new position
- Seek legal advice before making any employment changes during an active claim
How Changing Job Duties Affects Your Workers Compensation Entitlements
Transitioning into a safer, lighter, or more manageable role is often the most practical and beneficial outcome for injured workers returning to the workplace. Under Western Australian workers compensation legislation, employers are required to establish a Return to Work Programme if your treating doctor certifies that you have some capacity to work or formally requests one on your progress certificate. Your general practitioner may determine that you are not fit to resume your pre-injury duties and instead recommend a modified or light duties role suited to your current physical condition.
Importantly, your employer remains obligated to continue making weekly compensation payments based on your pre-injury earnings, regardless of whether your new responsibilities involve a lighter workload or attract a lower wage. Where the alternative role is paid at a reduced rate, you may still be entitled to top-up payments to bridge the difference, unless you have entered into a new and separate contract of employment. Understanding your entitlements in this situation is essential, and consulting a workers compensation lawyer can help clarify what you are owed. It is also worth keeping thorough records of any changes to your duties or pay, as this documentation can be valuable if a dispute arises.
Prioritising your health and wellbeing throughout this process is equally important. Returning to work before you are physically ready can delay your recovery or place you at risk of further injury. Always consult with a trusted general practitioner to ensure you are genuinely ready to resume work, even in a modified capacity.
Starting a New Job With a Different Employer During a Workers Compensation Claim
Injured workers are under no obligation to remain with their current employer simply because their workers compensation claim has been accepted. In some circumstances, the nature of a worker’s injuries may make it impossible to return to the same employer or even the same industry altogether. When this occurs, exploring alternative employment options is a reasonable and legitimate course of action. This situation arises frequently in physically demanding industries such as construction and industrial work, where the demands of the role may no longer be compatible with an injured worker’s condition.
Before commencing work with a new employer, it is important to seek clearance from your treating doctor. It is strongly recommended that you obtain an updated Certificate of Capacity from your general practitioner prior to starting any new role. This certificate confirms to both your previous and prospective employer that you are fit to undertake the new position and that your proposed duties fall within any documented work restrictions. Keeping your doctor fully informed about your employment situation ensures your medical assessments accurately reflect your capacity.
Failing to disclose a new job to your treating doctor can have serious consequences for your compensation claim. If you had previously indicated to your doctor that you were unable to work and then commenced employment without informing them, this could raise concerns about the accuracy of your reported work capacity and potentially compromise your entitlements.
Does Resigning From Your Job Affect Your Workers Compensation Payments?
Choosing to resign from your position should not impact the weekly compensation payments you are currently receiving. Under Western Australian workers compensation legislation, there are only a limited number of circumstances in which an insurer can lawfully cease payments, and resignation alone is not one of them. If you are leaving your role to take up a new job, it is important to notify both your employer and their insurer with details about your new employer, your position, your expected earnings, and your commencement date. Providing this information promptly helps ensure your entitlements are assessed accurately and without unnecessary delays. Workers who earn less in their new role may remain entitled to top-up payments, while those who fail to disclose increased earnings risk having overpayments recovered at a later stage.
It is unfortunately not uncommon for weekly payments to be incorrectly ceased on the basis of a worker’s resignation. If you had previously completed a full return to work as defined under the Workers Compensation and Injury Management Act 2023 prior to resigning, your payments are unlikely to be reinstated, as you would have already demonstrated a full capacity to work. Every situation is different, and the specific circumstances surrounding your resignation and claim history will determine your ongoing entitlements. Seeking advice from a qualified workers compensation lawyer is strongly recommended to ensure you fully understand your rights and obligations before making any decisions.
How Does Changing Jobs Impact Your Workers Compensation Weekly Payments?
Weekly compensation payments are calculated on the basis of a worker’s pre-injury earnings, specifically their average income over the 12 months preceding the workplace injury. Where an injured worker moves into a lesser-paying role as a direct result of their injury, the original employer’s insurer remains responsible for continuing workers compensation payments. If you return to work with reduced hours or in a position that attracts a lower wage, you may be entitled to ongoing top-up payments to bring your income in line with your pre-injury earnings. It is worth noting that your insurer is required to issue a Return to Work Notice before reducing or ceasing payments if you have returned to paid employment and are earning at or above your calculated weekly payment rate. Understanding how these adjustments are calculated can help you identify whether your payments have been correctly assessed.
Should your new role pay the same as or more than your pre-injury earnings, your weekly compensation payments may be reduced or stopped altogether. However, medical expense coverage for your original workplace injury should continue regardless of whether you have changed employers, provided the treatment relates to the compensable injury. This can include costs associated with medications, surgical procedures, rehabilitation programmes, and other approved treatments. You may also remain entitled to medical compensation payments if you have not yet returned to your full pre-injury duties and hours, even if your weekly income payments have ceased. Seeking clarification from a workers compensation lawyer can help ensure you are receiving all the entitlements you are eligible for under Western Australian law.
Conclusion
Changing jobs while on workers compensation in Western Australia is entirely possible, but it requires careful planning and a solid understanding of your legal entitlements. Whether you are transitioning to modified duties with your current employer, moving across to a new workplace, or considering resignation, each decision carries potential consequences for your weekly payments and ongoing medical coverage. Every worker’s situation is unique, and the way these changes affect your claim will depend on your specific circumstances, earnings, and the nature of your injury.
Taking the right steps before making any employment decisions is essential to protecting your entitlements. Always consult your treating doctor and obtain an updated Certificate of Capacity before starting any new role. Keeping your employer, insurer, and treating doctor fully informed throughout the process helps avoid unnecessary disputes or payment disruptions. Seeking advice from a qualified workers compensation lawyer in Western Australia ensures you are well-informed and properly supported at every stage of your claim.
FAQs
Can I lose my workers compensation benefits if I change jobs?
Not necessarily, as your entitlements depend on your new earnings and employment circumstances. Your weekly payments may be adjusted, but medical coverage for your original injury can continue.
Do I need to tell my employer if I start a new job while on a claim?
Yes, you are required to notify your employer and their insurer about any new employment. Failing to do so could result in overpayment recovery or complications with your claim.
Will resigning from my job stop my workers compensation payments?
Resignation alone is not a lawful reason for an insurer to cease your weekly payments. However, your specific claim history and circumstances will ultimately determine your ongoing entitlements.
What is a Certificate of Capacity and why do I need one?
A Certificate of Capacity is a document from your GP confirming your fitness to work and any relevant restrictions. It protects both you and your new employer by clearly outlining what duties you can safely perform.
What happens to my weekly payments if my new job pays less than my pre-injury earnings?
You may be entitled to top-up payments to bridge the gap between your new income and your pre-injury earnings. Your insurer must issue a formal Return to Work Notice before making any changes to your payment rate.
Rebecca Sorgiovanni is the Director of Soul Legal, a trusted Perth-based injury compensation lawyer with over two decades of experience representing injured clients in complex litigation and tribunals across Western Australia.
