If you’re dealing with workplace harassment in NSW, you’re probably feeling overwhelmed and wondering what your options are for compensation. The good news? There are several pathways available to help you get justice and financial support. From my years working in employment law, I’ve seen too many people suffer in silence when they could have accessed significant compensation for the harm they’ve endured.
Understanding Your Rights Under NSW Law
What Actually Counts as Workplace Harassment?
Let’s get straight to the point. Workplace harassment in NSW isn’t just about the obvious stuff. Sure, it includes physical threats and sexual harassment, but it goes much deeper than that. You might be surprised to learn that demeaning practical jokes, sarcasm, ridicule, overbearing supervision, and even setting impossible deadlines all fall under workplace harassment.
The key thing to remember is that harassment often escalates despite your attempts to resolve things through normal communication. If you’re experiencing repeated unreasonable behaviour that creates a risk to your health and safety, you’re likely dealing with workplace harassment under the Fair Work Act 2009.
However, it’s important to understand what doesn’t count as harassment. Not every negative workplace experience qualifies. Sometimes personalities clash, and reasonable management actions – even if they feel harsh – aren’t necessarily harassment.
Your Compensation Options in NSW
Here’s where things get interesting. You’ve actually got multiple avenues for seeking compensation, and understanding each one is crucial for maximising what you’re entitled to.
Workers Compensation for Psychological Injury
The Basics of Psychological Injury Claims
If workplace harassment has caused you psychological harm, you can make a workers compensation claim in NSW. This covers conditions like depression, anxiety, and PTSD that develop as a direct result of your work environment.
To qualify for compensation, your psychological injury must be diagnosed by a medical professional. Simple emotional responses like anger or frustration don’t cut it, you need a recognised psychological disorder that’s directly connected to your workplace.
Weekly Payments: Your Financial Lifeline
When you’re off work due to psychological injury from harassment, you can receive weekly compensation payments. As of October 2024, the maximum weekly payment in NSW is $2,523.00. Here’s how it breaks down:
- First 13 weeks: You’ll receive 95% of your pre-injury average weekly earnings if you have no work capacity
- Weeks 14-130: This drops to 80% of your pre-injury earnings
- After 130 weeks: You can still receive 80% if you meet certain criteria
The system recognises that psychological injuries often take longer to heal than physical ones, which is why these payments can continue for extended periods.
Lump Sum Compensation
This is where compensation can become substantial. For psychological injuries in NSW, you need to reach a minimum 15% Whole Person Impairment (WPI) to qualify for a lump sum payment. The amounts can be significant – ranging from $27,790 for 11% impairment up to $713,660 for the most severe cases.
What many people don’t realise is that you can only claim lump sum compensation for either your psychological injury or any physical injury you might have – not both. Choose wisely, as psychological injury compensation often proves more valuable in harassment cases.
In May 2025, the NSW Government proposed reforms that would raise the minimum threshold for psychological injuries to 31% WPI. If enacted, this would dramatically reduce the number of workers eligible to claim compensation for psychological injuries. You can read more about this below.
Common Law Claims: The Big Money Option
Work Injury Damages Claims
Here’s where you can really see substantial compensation. Common law claims, known as “work injury damages” in NSW, allow you to claim for both past and future loss of earnings. Unlike workers compensation, there’s no cap on how much you can receive.
To succeed with a common law claim, you need to prove your employer was at fault, either through negligence or breach of statutory duty. In harassment cases, this might involve showing your employer failed to provide a safe working environment or didn’t take reasonable steps to prevent the harassment.
I’ve seen cases where people have received hundreds of thousands of dollars through common law claims. One case I’m aware of resulted in a $507,550 payout for persistent harassment and bullying [1]. Another sexual harassment case resulted in $170,000 in compensation, including $50,000 in aggravated damages [2019] FCCA 1267; Hughes v Hill [2020] FCAFC 126.
The 15% WPI Threshold Challenge
Here’s something that might frustrate you: to make a work injury damages claim for psychological injury in NSW, you need to meet that 15% WPI threshold. A registered psychiatrist will assess you using the Psychiatric Impairment Rating Scale (PIRS), rating different aspects of your condition from one to five.
This assessment looks at how your condition affects your daily life, work capacity, and social functioning. Don’t underestimate this process – getting a thorough assessment from an experienced psychiatrist can make the difference between qualifying for substantial compensation or missing out entirely.
Anti-Discrimination Compensation
NSW Civil and Administrative Tribunal (NCAT)
If your harassment involves discrimination based on characteristics like sex, race, disability, or age, you can pursue compensation through NCAT. The tribunal can award up to $100,000 in compensation for discrimination and harassment.
The process starts with making a complaint to the Anti-Discrimination Board of NSW. If conciliation fails and your complaint is upheld, it gets referred to NCAT for determination. NCAT can order compensation, apologies, reinstatement, and programs to prevent future discrimination.
Federal Discrimination Claims
For sexual harassment and other federal discrimination matters, you can pursue claims under the Sex Discrimination Act 1984. I’ve seen significant payouts through this avenue – one university sexual harassment case resulted in $60,000 in general damages [2].
The Federal Court can make various orders including compensation for loss and damage, reinstatement, and declarations that discrimination occurred. While damages are often in the $8,000-$20,000 range, more serious cases can result in much higher awards.
Fair Work Commission Protections
General Protections Claims
If you’ve been fired or treated badly for making complaints about workplace harassment, you might have a general protections claim. These protect your right to make complaints about workplace conditions without facing adverse action.
A recent case shows just how valuable these claims can be. An employee received almost $100,000 in damages and penalties when their employer placed them on performance review and then dismissed them for making workplace complaints – Lees v Asaleo Personal Care Pty Ltd (No 2) [2022] FedCFamC2G 264.
Anti-Bullying Orders
The Fair Work Commission can make orders to stop workplace bullying, though they can’t award financial compensation. While this doesn’t put money in your pocket, it can be crucial for stopping ongoing harassment and creating a safer work environment.
Recent Changes and What They Mean for You
Upcoming NSW Reforms: A Cause for Concern
I need to be upfront with you about some concerning changes coming to NSW workers compensation. The NSW government is proposing reforms that could make it much harder to claim compensation for psychological injuries caused by workplace harassment.
The proposed changes include potentially raising the WPI threshold from 15% to 31% for psychological injury claims. This would effectively exclude many harassment victims from receiving lump sum compensation. The government is also considering requiring you to first succeed in a bullying claim through industrial tribunals before you can access workers compensation.
These changes haven’t become law yet, but they highlight the importance of acting quickly if you’re considering a claim. The current system, while not perfect, offers much better protection than what’s being proposed.
Why Timing Matters
Given these potential changes, there’s never been a more important time to understand your rights and act on them. Psychological injury claims currently make up 12% of total workers compensation claims but account for 38% of the total cost, with average claim values reaching $288,542.
The government’s focus on these statistics shows they’re serious about reducing access to compensation. If you’re suffering from workplace harassment, don’t wait – seek legal advice now while the current, more favourable system is still in place.
Maximising Your Compensation: Practical Steps
Document Everything
From my experience, the difference between a successful claim and a failed one often comes down to documentation. Keep detailed records of every harassment incident, including dates, times, witnesses, and how it affected you. Save emails, text messages, and any other evidence.
Your contemporaneous notes carry significant weight in legal proceedings. Don’t rely on your memory months or years later – write it down as it happens.
Seek Medical Treatment
This isn’t just about your health – though that’s obviously the priority. Medical records create a clear link between the workplace harassment and your psychological injury. The earlier you seek treatment, the stronger your compensation claim becomes.
Don’t tough it out thinking you’ll get better on your own. Professional treatment not only helps you recover but also provides the medical evidence you’ll need for compensation.
Choose Your Legal Pathway Carefully
You might be eligible for multiple types of compensation, but you can’t always claim them all. For instance, if you receive a lump sum for psychological injury, you might not be able to claim for physical injury compensation as well. However, these claims can take years. You may be waiting for years for a payment which may not arrive.
You may also try to seek compensation through employment law channels such as Fair Work Commission or other tribunals or court set out above. This process may be able to achieve some sort of compensation for you.
It is important to note that whilst employment law and workers compensation are separate but in certain circumstances they may impact one another. It may not always be beneficial to do both at the same time. This is where expert legal advice becomes invaluable. An experienced lawyer can help you understand which pathway offers the best potential return and guide you through the complexities of each system.
Getting the Right Legal Help
Why You Need a Specialist
Workplace harassment compensation law in NSW is complex, with multiple overlapping systems and technical requirements. The 15% WPI threshold, the various limitation periods, and the interplay between different compensation schemes mean you need someone who understands these systems inside and out.
I’ve seen too many people try to navigate these systems alone and miss out on substantial compensation because they didn’t understand their options or the technical requirements involved.
Why Fair Workplace Solutions Should Be Your First Call
When you’re dealing with workplace harassment, you need a legal team that combines expertise in employment law with genuine compassion and that’s exactly what Fair Workplace Solutions delivers. Based in Bella Vista but serving clients across Australia, we are a specialist firm that cuts through the complexity of NSW’s compensation systems so you don’t have to navigate them alone.
What sets us apart is our direct access to employment lawyers, without the need for HR intermediaries or generic advice. You’ll work directly with specialists like Shelly and Massi Tamas, whose combined experience spans employment law, Fair Work Commission advocacy, and workplace relations strategy. We’ve successfully represented clients and achieved compensation for them. Give the team a call today!
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