WHAT IS THE DIFFERENCE BETWEEN A WORKERS COMPENSATION CLAIM AND WORK INJURY DAMAGES CLAIM

A Workers Compensation Claim is designed to provide financial and medical support to employees who suffer injuries or illnesses due to their job while work injury damages claim is a legal action that an employee can pursue if they believe their injury resulted from their employer’s negligence. Therefore, it’s essential to carefully consider which type of claim is more appropriate based on the specifics of the injury and the circumstances surrounding it.

Depending on the nature and severity of your injury, you may have two options: a worker’s compensation claim or a work injury damages claim. But what is the difference between these two types of claims, and how do you decide which one is best for your situation?

The key differences between these two claims lie in their basis and the type of compensation they offer. Workers’ compensation is no-fault and provides immediate financial support for medical expenses and lost wages. In contrast, a work injury damages claim is fault-based and aims to compensate for broader impacts, including pain and suffering and loss of future income.

In this blog post, we will explain the main differences between workers’ compensation and work injury damages claims, and provide some guidance on how to choose the right option for your case.

Injured at work?

Contact Our Expert Team Today To Determine The Best Claim For Your Work Injury: Workers’ Compensation Or Damages!

*Free consultation is limited to 15 minute phone call for us to give preliminary advice

ELIGIBILITY CRITERIA FOR WORKERS COMPENSATION AND WORK INJURY DAMAGES CLAIMS

Workers’ compensation is a no-fault scheme that provides benefits to workers who have sustained an injury, whether physical or psychological, in their employment. This means that you do not have to prove that your employer was negligent or at fault for causing your injury. You only have to show that your injury arose out of or in the course of your employment and that your employment was a substantial contributing factor to your injury.

Some of the benefits that you can claim under workers’ compensation include:

Weekly payments for loss of earnings based on the statutory rate of compensation

Reasonable and necessary medical expenses

Lump sum payment for permanent impairment resulting from your injury (if you meet the threshold of 11% or more for a physical injury or 15% or more for a psychological injury)

Domestic assistance (in limited circumstances)

You should make a worker’s compensation claim as soon as possible after your workplace accident, as there are time limits and notification requirements that apply.

Some of the damages that you can claim under work injury damages include:

Past and future loss of earnings due to the impairment or deprivation of your earning capacity

Past and future loss of superannuation benefits

Tax paid on weekly workers’ compensation benefits

Legal costs and disbursements

You cannot claim medical expenses or pain and suffering under work injury damages.

You can only make a work injury damages claim if you meet the following criteria:

You have been assessed as having at least 15% whole-person impairment due to your injury

You have received a lump sum payment for permanent impairment under workers’ compensation

You have commenced legal proceedings within 3 years from the date of injury (or obtained an extension from the court)

Making a work injury damages claim will end your entitlements under workers’ compensation.

THE CLAIM PROCESS FOR WORKERS COMPENSATION VS WORK INJURY DAMAGES

The claim process for workers compensation and work injury damages is quite different. Here are the main steps involved in each type of claim:

WORKERS’ COMPENSATION CLAIM PROCESS

Report the Incident : The first step in a workers’ compensation claim is to report the injury or illness to your employer. This should be done as soon as possible after the incident.

Medical Treatment : Seek immediate medical treatment. Your employer or workers’ compensation insurance company may have a network of preferred providers that you are required to use.

Claim Filing : Your employer should provide you with the necessary forms to file a workers’ compensation claim. These forms must be filled out accurately and completely, and submitted to the insurance company.

Claim Investigation : Once the claim is submitted, it will be investigated by the insurance company. They may request additional information or documentation, and they will determine whether the claim is approved or denied.

Benefit Payments : If the claim is approved, you will receive benefits that may include medical expenses, lost wages, and disability benefits.

WORKERS’ COMPENSATION CLAIM PROCESS

Report the Incident : Similar to a workers’ compensation claim, the first step is to report the injury to your employer.

Medical Treatment : Seek medical treatment immediately following the incident. In a work injury damages claim, you are typically not limited to a specific network of providers.

Consult with an Attorney : Because damages claims are more complex, it’s advisable to consult with an attorney. They can help you determine whether you have a valid claim and guide you through the process.

File a Lawsuit : Unlike a workers’ compensation claim, a work injury damages claim involves filing a lawsuit against your employer or another party. Your attorney will help you file the necessary court documents.

Discovery and Negotiation : After the lawsuit is filed, both sides will gather evidence (a process known as discovery). There may be negotiations for a settlement.

Trial or Settlement : If a settlement isn’t reached, the case will go to trial. If you win, you may be awarded damages for medical expenses, lost wages, pain and suffering, and other costs related to your injury.

Some of the benefits that you can claim under workers’ compensation include:

Weekly payments for loss of earnings based on the statutory rate of compensation

Reasonable and necessary medical expenses

Lump sum payment for permanent impairment resulting from your injury (if you meet the threshold of 11% or more for a physical injury or 15% or more for a psychological injury)

Domestic assistance (in limited circumstances)

You should make a worker’s compensation claim as soon as possible after your workplace accident, as there are time limits and notification requirements that apply.

Work injury damages is a negligence claim that allows you to sue your employer for damages if you can prove that they were negligent and that their negligence caused your injury. This means that you have to show that your employer breached their duty of care to provide you with a safe work environment and that this breach resulted in your injury.

Some of the damages that you can claim under work injury damages include:

Past and future loss of earnings due to the impairment or deprivation of your earning capacity

Past and future loss of superannuation benefits

Tax paid on weekly workers’ compensation benefits

Legal costs and disbursements

You cannot claim medical expenses or pain and suffering under work injury damages.

You can only make a work injury damages claim if you meet the following criteria:

You have been assessed as having at least 15% whole-person impairment due to your injury

You have received a lump sum payment for permanent impairment under workers’ compensation

You have commenced legal proceedings within 3 years from the date of injury (or obtained an extension from the court)

Making a work injury damages claim will end your entitlements under workers’ compensation.

HOW DO COMPENSATION AMOUNTS DIFFER?

One of the most important differences between workers compensation and work injury damages claims is the amount of compensation that you can receive. Workers compensation benefits are based on a statutory formula that takes into account your pre-injury average weekly earnings, your degree of incapacity, and your level of impairment. Work injury damages are based on the actual loss of earnings that you have suffered and will suffer in the future due to your injury, as well as other factors such as your age, education, skills, and prospects of employment.

Generally speaking, work injury damages claims result in higher compensation amounts than workers compensation claims, as they reflect your true earning capacity and potential. However, work injury damages claims are also more risky and costly, as they require you to prove negligence and to go through a lengthy and complex legal process. Workers compensation claims are more certain and straightforward, as they do not depend on fault and can be resolved through an administrative tribunal.

Therefore, you should carefully weigh the pros and cons of each type of claim before deciding which one to pursue.

CONCLUSION

If you have been injured at work, you may have two options to claim compensation: a worker’s compensation claim or a work injury damages claim. These two types of claims have different eligibility criteria, claim processes, and compensation amounts. Workers compensation is a no-fault scheme that provides statutory benefits for injured workers, regardless of negligence. Work injury damages is a negligence claim that allows injured workers to sue their employer for damages if they can prove fault and meet the impairment threshold.

The decision to make a worker’s compensation claim or a work injury damages claim is not a simple one. It requires careful consideration of various factors, such as the severity of your injury, the degree of impairment, the likelihood of proving negligence, and the availability of legal advice. To make the best decision for your case, you should consult a lawyer who specialises in worker’s compensation and work injury damages claims. A lawyer can help you understand your rights and entitlements, assess your case, negotiate with the insurer and the employer, and represent you in the tribunal or the court.

FAQs

What is workers' compensation?

Worker’s compensation is a form of insurance that provides wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee’s right to sue their employer for negligence.

What should I do if I have a job injury?

Report the injury to your employer immediately. If your injury or illness developed over time, report it as soon as you learn or believe it was caused by your job. Then, fill out a claim form and give it to your employer to open your workers’ compensation case.

What benefits am I entitled to under workers' compensation?

Workers’ comp insurance provides five basic benefits: Medical care, Temporary disability benefits, Permanent disability benefits, Supplemental job displacement benefits, and Death benefits.

What resources are available to me for workers' compensation?

You can attend free seminars for injured workers at a local DWC district office for a full explanation of workers’ comp benefits. Also, you can make an appointment with an I&A officer and speak to them privately at your convenience.

How can I find out who provides workers' compensation coverage for my employer?

In California, all employers are required to either purchase a workers’ compensation insurance policy from a licensed insurer authorized to write policies in California or become self-insured. To find out which insurer provides workers’ compensation insurance for a specific employer, visit the California Workers’ Compensation Coverage website.

How do I know if I am an independent contractor and not covered under workers' compensation?

There is no set definition of this term. Labor law enforcement agencies and the courts look at several factors when deciding if someone is an employee or an independent contractor. Some employers misclassify employees as independent contractors to avoid workers’ compensation and other payroll responsibilities.

Our Latest Blogs

New Continuous Disclosure Regime In Australia

OUR EMPLOYMENT LAWYER REVIEWS

    
 
 
        
    
 2024-05-27
 
 
  10/10 for Professionalism, Due diligence and very easy to deal with. Definitely recommended 😊 Tina does whatever she could to ensure your best interest is represented 👍🏻 The CMI Legal team is a team you can trust. There is nowhere else I’d rather be going to for legal advice, you soon will learn why, too.
  
 
       
    
 2024-05-24
 
 
  Tina Tang is doing excellent service job as a profesional lawer and provide valued information about property purchase issue.Thank you so much,we are appreciated to your skilled help and hope to cooperate with your esteemed company,current residential living apartment 506/2-4 Culworth Ave Killara should be put in market,we hope Tina Tang will provide support as well.thank you so much.
Joe Shi
  
 
       
    
 2024-02-22
 
 
  CMI are very knowledgeable regarding Intellectual Property Law. I spoke with John & he helped me talk through my options & potential outcomes. He was very considerate & explained everything in detail, which I appreciated greatly.
  
 
       
    
 2024-02-12
 
 
  I am highly grateful for all the assistance I was provided by CMI Legal during my home purchasing process. Tina has guided me through 2 separate purchases and she has been professional and prompt with personalized advice. I would be completely overwhelmed were it not for her legal expertise.
  
 
       
    
 2024-02-01
 
 
  I really recommend the legal service here! Tina is my lawyer and she is very helpful for all the works, and she always communicates with me with all the details very well. I will definitely work with her again in the future.
  
 
       
    
 2023-12-05
 
 
  Working with Tina through all steps of our property purchase was such a delight.  She provided frequent updates at every step of the process so we always knew where everything was up to.  We were always provided with clear and concise instructions and never left wondering what to do next.  Would highly recommend!
  
 
       
    
 2023-10-03
 
 
  Thank you for your Excellent support your understanding to our request help us with the process and an fantastic advice to our Family Business, thank you CMI Legal Pty Ltd Team at Chatswood,NSW for all the effort to put to focus for all the details to help and support us.
We are incredibly grateful to you for your help.Thank you for the outstanding SERVICE to us and your Customer.
Thank you to your nice receptionist for great customer services..
receptionist
  
 
       
    
 2023-10-03
 
 
  Professional and down to earth, willing to listen to my issues without prejudice. Highly recommend
  
 
  
  
 
 
   Google rating score: 4.8 of 5, based on 49 reviews