According to the 2022/2023 report by the Queensland Industrial Relations Commissions, in Queensland, if a worker suffers permanent injury, WorkCover will offer, in most cases, between $4,000 and $40,000. For people who don’t accept this offer and make a common law damages claim, the average settlement is $188,794. (But this figure excludes nil settlements – i.e. where the claimant did not recover any damages.) Let’s look at the detail to understand the reasons.

Difference between statutory claim and common law damages claim

If you suffer a work injury in Queensland, you can make a workcover claim. The first stage of the claim is called the statutory claim. In short, in this stage it doesn’t matter who was at fault, or even if no-one was at fault – as long as your injury happened at work, you can make a claim.

When the statutory claim ends, an injured worker can decide to go to the next stage, which is called a common law damages claim. People can recover much more in damages in a common law claim, but there is a catch: you (or your lawyers) have to be able to prove that your employer was negligent, and this negligence caused your injuries.

What is the payout offer in a statutory workcover claim?

The payout offer in the statutory claim depends on the following two things: did you suffer a permanent injury? If yes, what is the degree of your permanent impairment? For example, if WorkCover believes a person suffered permanent injury and the degree of their impairment is 10%, the offer will be $39,937.

When WorkCover offers a payout at the end of the statutory claim, this is called a lump sum compensation offer. We recommend that you seek legal advice before you respond to the offer. If you accept the offer, you lose your right to common law damages (with very narrow exceptions).

What is the average permanent impairment for Queensland workcover claims?

The average impairment looks like this:

• 23% of claims are assessed with a 0% impairment
• about 5% of claims are assessed with a 20% impairment (or higher)
• of the balance, 9 out of 10 claims will have an impairment rating between 1% to 10%, and 1 in 10 claims will be assessed between 10% to 15%.

How is the payout calculated at the end of the statutory claim?

The calculation is fairly simple. You multiply $399,377.55 by the impairment percentage. So, 10% impairment gets $39,937.75 ($399,377.55 X 10%). The figures are indexed every year.

From the above, it’s relatively easy to conclude that in most cases involving permanent injury, the degree of impairment will be between 1% and 10% and the corresponding offer will be between approximately $4,000 and $40,000.

What is the payout for workcover common law damages in Queensland?

The average settlement payout is $188,794. But keep in mind two important points. Firstly, in most workcover claims, legal costs come out of the settlement money. And some firms charge much more than others. People need to remember – what is important is how much you keep in the hand, after legal costs. Secondly, a small number of cases don’t settle, and proceed to court. The outcomes of the cases which do go to court are not included in the above averages.

Why are common law damages higher? What’s included?

In a common law damages claim you can recover in one lump sum the following compensation:

• General damages: this is also known as compensation for pain and suffering.
• Past economic loss: income loss between your accident and the date of settlement. This is often more than what WorkCover has paid during the statutory claim. You can also recover overtime, as well as any pay increase which you have lost out on due to missed promotions.
• Future economic loss: income loss which you may incur between now and your likely retirement age. It’s calculated based on expert medical and/or accounting evidence. Download our free guide
• Lost superannuation. You will recover any superannuation contributions which you lost since your accident, as well as any super contributions which you will lose in the future.
• Medical treatment, rehabilitation, medication and travel expenses: again, all past and future expenses are recoverable. For example, if a person needs to participate in the future in a pain management program, the cost is recoverable now.
• Loss of subsidised meals: this is particularly relevant for FIFO workers. If you can’t work, you won’t get subsidised meals. This is a loss which can be claimed. Read more about FIFO workers’ compensation claims here