There are different workers compensation laws for:

• each state and territory
• Commonwealth employees.

Whether an employee is entitled to accrue or take leave during a period of workers compensation will depend on the workers compensation law that applies to them.

Section 130 of the Fair Work Act 2009 says that employees aren’t entitled to accrue or take leave during a period of workers compensation unless the workers compensation law permits it.

Please access the links to the workers compensation regulator in your state or territory for advice on workers compensation.

Does annual leave accrue during workers compensation?

NSW, Qld, Tas, Vic and WA

In New South Wales, Queensland, Tasmania, Victoria and Western Australia annual leave will accrue during workers compensation if the employee would have otherwise been entitled to the accrual had they not been on workers compensation. 

As workers compensation law can provide for specific leave entitlements, please contact the workers compensation regulator in your state or territory for further advice.

South Australia

Usually, annual leave accrues during worker's compensation in South Australia.

The rules on annual leave accrual can be different for employees if they're totally incapacitated on workers compensation for 52 weeks or more.

Annual leave for these employees is treated as having been taken and paid for by the workers compensation payments.

However, employees that get annual leave loading under an award or agreement, still get paid the loading for the period of annual leave that is treated as having been taken and already paid.

ACT

From 9 June 2023

The Workplace Legislation Amendment Act 2022 (ACT) changed the operation of the workers compensation laws in the ACT.

This means that from 9 June 2023, annual leave will accrue during workers compensation if the employee would have otherwise been entitled to the accrual had they not been on workers compensation.

Before 9 June 2023

No. Annual leave didn't accrue during workers compensation.

NT and Norfolk Island

No. Annual leave doesn’t accrue during workers compensation.

Commonwealth employees

Annual leave will accrue for 45 weeks only, if the employee would have otherwise been entitled to the accrual had they not been on workers compensation.

Does sick leave accrue during workers compensation?

Qld and SA

Yes. Sick leave accrues during workers compensation.

WA

From 1 July 2024

The Workers Compensation and Injury Management Act 2023 (WA) provides that sick leave can accrue while an employee is receiving workers compensation.

This means that from 1 July 2024, sick leave will accrue during workers compensation if the employee would otherwise have been entitled to the accrual had they not been on workers compensation.

Before 1 July 2024

No. Sick leave didn’t accrue during workers compensation prior to 1 July 2024.

ACT, NSW, NT, Tas, Vic and Norfolk Island

No. Sick leave doesn’t accrue during workers compensation.

Commonwealth employees

Sick leave can accrue for 45 weeks only.

Can annual leave be taken during workers compensation?

NSW, Qld, Tas, Vic and WA

Annual leave can be taken during workers compensation in New South Wales, Queensland, Tasmania, Victoria and Western Australia.

In most states, employees get paid for both the annual leave and workers compensation.

In Tasmania, employees won’t get paid for workers compensation at the same time they’re being paid for annual leave.

Annual leave taken during workers compensation in South Australia

In South Australia, annual leave can be taken or paid out.

The rules on taking annual leave can be different for employees if they're totally incapacitated on workers compensation for 52 weeks or more.

These employees can’t take annual leave.

This is because their accrued annual leave is treated as having been taken and paid for by the workers compensation payments.

ACT

From 9 June 2023

The Workplace Legislation Amendment Act 2022 (ACT) changed the operation of the workers compensation laws in the ACT.

This means that from 9 June 2023, annual leave can be taken during workers compensation.

Before 9 June 2023

No. Annual leave couldn't be taken during workers compensation.

NT and Norfolk Island

No. Annual leave can’t be taken during workers compensation.

Commonwealth employees

No. There are some exceptions for members of the defence forces.

Can sick leave be taken during workers compensation?

NSW and Qld

Yes.

In New South Wales if the payment for sick leave is higher, payment is the difference between the sick leave payment and workers compensation.

Payment is made from the employee's accrued sick leave.

ACT, NT, SA, Tas, Vic, WA and Norfolk Island

No. Sick leave can’t be taken during workers compensation.

Commonwealth employees

No. There are some exceptions for members of the defence forces.

Employees returning to work

Some employees on workers compensation return to work on reduced hours and/or alternative duties while recovering from an illness or injury.

Employees returning to work on reduced hours will accrue annual leave and sick leave according to their reduced hours of work. They can also take annual leave and sick leave during this time.

This applies to employees in all states and territories.

Some employees who return to work on reduced hours also accrue annual leave and/or sick leave while absent from work and receiving workers compensation. Please see the information above about accruing annual leave and sick leave during workers compensation.

Example: Returning to work on reduced hours

Adam is a full-time employee in NSW.

Adam stopped working due to a workplace injury.

After 3 months on workers compensation, he returned to work on reduced hours working 20 hours a week. Adam continues to receive 18 hours of workers compensation each week.

In NSW, annual leave accrues during workers compensation. This means that Adam will accrue annual leave on both his hours worked and hours on workers compensation when he returns to work.