Can I be Fired Whilst on Workers Compensation?
Worker's Compensation
29 April 2026
min read
Key Takeaways
Section 248 of the Workers Compensation Act 1987 (NSW) protects injured workers from dismissal during the initial recovery period. Employers must assist in rehabilitation and cannot fire workers solely because of a workplace injury.
• Dismissal within 6 months of becoming unfit for work is an offence under Section 248
• After 6 months, employers can legally terminate if the worker has not returned to normal duties
• Workers compensation benefits continue even if employment is terminated
• Dismissed workers can apply for reinstatement through the Industrial Relations Commission within 2 years
It is an offence to dismiss an injured worker within six months of an injury.
An employer is not allowed to fire or terminate your employment because of an injury within six months from the day the worker becomes unfit for work.
Can I be Fired Whilst on Workers Compensation?
Under Section 248 of the Workers Compensation Act 1987 (NSW), it is an offence to dismiss an injured worker within six months of an injury because the worker is not fit for employment. The worker cannot be dismissed within six months of the worker first becoming unfit for employment.
An employer is required by the workers compensation legislation to assist in rehabilitating the injured worker back to work. However, if the worker has not returned to their normal duties within six months, the employer can legally terminate the employment.
An injured worker who is dismissed on the basis that they are unfit for their job after six months can, within two years, make an application to the Industrial Relations Commission of NSW for reinstatement to their former position. If the worker is able to obtain a medical certificate which clears them fit to return to their pre injury duties, the worker can request reinstatement of their position.
Often employers do not terminate workers after six months and most make reasonable attempts to return a worker to their prior employment.
If however you are unfit to return to your pre injury duties and the employer is not willing to provide you with any other suitable employment then your employment at some stage is likely to be terminated.
If your employment is terminated, you continue to receive workers compensation benefits under the Workers Compensation Act. Workers’ compensation benefits do not cease if your employment is terminated or you are fired.
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I cannot speak highly enough of my experience with this workers Compensation team. When I first reached out, I was completely overwhelmed and unsure about the process. I hit rock bottom - unable to return to work, struggling emotionally, and feeling like I had no direction. From the very beginning, the solicitors were nothing short of amazing. They were patient, understanding and incredibly supportive at a time when I needed it most. They took the time to explain every step in a way I could understand, never making me feel rushed or alone. Their professionalism was matched only by their compassion and that combination made all the difference. Throughout the entire journey, I felt heard, respected and genuinely cared for. They fought for me when I didn’t have the strength to fight for myself and thanks to their dedication, I was able to get the outcome I needed to rebuild my life. If you’re unsure, scared or feeling lost like I was, I can confidently say you will be in the best hands with this team. They helped me through one of the hardest chapters of my life, and I am truly grateful. I can’t thank or recommend Garling & Co Lawyers enough.
Matthew Garling and his team have provided incredible support and guidance throughout my MVA damages claim this year, and I can’t thank them enough for making this journey feel like such a breeze. When I initially engaged Garling & co, I had no understanding of what was ahead. I was anxious and unsure about the process, while also navigating the physical challenges of my injuries. With assurance that my matter was being handled with high level of expertise, professionalism and integrity, I was able to focus on recovery instead. Throughout the process, Matthew and Allison have been honest, straightforward and efficient in all communication; being a supportive buffer in all dealings with the insurer, and consistently committed to a successful outcome. The outcome was excellent, and it is with huge relief and great thanks that I can put this matter behind me. I would highly recommend the services of Garling and co for any injury claims of a similar nature, and I’m forever grateful to Matthew and his team.
A big thank you to Matthew for his expertise, dedication, and genuine care in handling my matter. The outcome exceeded my expectations, and I am truly grateful for the excellent work of his entire team. Outstanding results - highly recommended.
Disclaimer
The information contained on this article is of a general nature only and is not intended to be legal advice. The law may have changed since the information was published. There is no intention to create a lawyer-client relationship and you should always seek legal advice about your own personal circumstances.