This article outlines the involvement and assistance WorkCover lawyers can offer workers for impairment benefit compensation claims and explains:
- What a WorkCover impairment claim is
- Who is eligible
- How much compensation you can receive
- Whether you need a lawyer
- What lawyers should charge (and when fees are too high)
This information applies to injured workers covered under Victoria’s workers compensation scheme (WorkCover) governed by the Workplace Injury Rehabilitation and Compensation Act 2013.
What is a WorkCover Impairment Claim?
A WorkCover impairment claim is a lump sum compensation payment for permanent impairment caused by a work injury.
Victoria’s WorkCover scheme covers workers for injuries at work and is often described as a “no fault” system, meaning you don’t need to prove your employer did anything wrong — only that your injury or condition is work-related and accepted.
Who Is Eligible for an Impairment Claim in Victoria?
A WorkCover impairment claim can provide important financial assistance to injured workers in Victoria. If eligible, these claims provide workers with access to tens of thousands of dollars of tax-free compensation.
To qualify for a WorkCover impairment claim the following applies:
- At least one year (12 months) must have passed since the date of injury at work,
- Your injuries must be considered ‘stable’, and;
- The injuries must be assessed at a minimum level of impairment:
Injury Type | Minimum Whole Person Impairment |
|---|---|
Musculoskeletal (back, neck, shoulder, etc.) | 5% |
Other physical injuries | 10% |
Psychiatric conditions | 30% |
How Much Is a WorkCover Impairment Claim Worth?
Compensation depends entirely on your assessed impairment percentage.
- Base level impairment compensation is around $15,000
- Very significant impairment claims can exceed $100,000+ (e.g., spinal injuries, amputations)
The level of compensation is not negotiable or subjective – it is based on the level of impairment (which can be disputed), and the compensation amount is also indexed based on the date of an injury – meaning a worker injured more recently may receive slightly more than someone with the same impairment years earlier.
Example
Two workers injured their backs, one in 2015 and one in 2026, and they received same impairment assessment of 5%.
The later would receive a slightly higher amount of $16,000 whilst the 2015 injured worker would receive around $12,000 due to indexing.
There is no time limit to make a WorkCover impairment claim. However, we generally recommend making these claims within 3 years of an injury.
Most of the time WorkCover impairment claims will resolve within 4-6 months once lodged.
Is an Impairment Claim My Only Compensation Right?
Impairment compensation is generally modest compensation and is separate to any other rights and entitlements.
It is not money for ‘pain and suffering’ and does not take into account many of the effects and consequences of injuries.
You may also be entitled to:
- Weekly payments
- Medical expenses
- A common law damages claim (for serious injury and negligence)
How Can a Lawyer Help and How Much Do They Cost?
Lawyers can play an important role in helping injured workers access impairment compensation. However, it is also important that workers ensure that any lawyer fees are fair and proportionate – in other words, don’t get ripped off!
Do I need a Lawyer for a WorkCover Impairment Claim?
An injured worker can make an impairment claim themselves. But, there is an advantage to engaging a lawyer to do this. A lawyer can make the WorkCover impairment claim process smoother, they are familiar with the process and the administration required, they can properly review any outcome to advise if an offer is fair and reasonable (and the options to dispute any outcome).
How Much Should a Lawyer Charge for an Impairment Claim?
If a lawyer follows the WorkCover protocols WorkCover contributes a small amount toward legal costs (about $1,300) plus some medical report expenses. Injured workers with a lawyer will be required to pay a ‘shortfall’ of costs to their lawyer.
In our view the service and outcome provided by most competent lawyers for a WorkCover impairment claim. The difference will normally be in relation to costs. The reality is a WorkCover impairment claim is largely administrative. Lawyers are expensive, but the cost should still be fair.
Don’t Get Ripped Off – Cost Tips Before Hiring a Lawyer
In our view, if a lawyer is quoting an injured worker anything above $4,500 for ‘shortfall’ (out-of-pocket) costs for a ‘standard’ WorkCover impairment claim this should be queried.
However, in some cases, out of pocket fees above this amount can be fair and reasonable. For example, if there are significant delays, a need for above standard consultations, or more complex claims. So, it is important to ask for justification on costs if you are unsure.
Ethically, in our view lawyers should also provide a guarantee or assurance to injured workers that if the impairment claim resolves at the base amount the ‘shortfall’ costs should be capped at a lower amount then the above (noting the base amount of compensation is about $15,000, and for older injuries sometimes even less).
Some firms may try to charge up to, or in excess of, $10,000 for WorkCover impairment claims for ‘shortfall’ costs. In our view, it is nearly impossible to justify costs at this level for a WorkCover impairment claim.
It is worth remembering that the ‘shortfall’ costs a worker is charged are in addition to, the costs the lawyer receives from WorkCover under the protocols and guidelines.
Tips for Dealing with Lawyers for WorkCover Impairment Claims
We recommend the following:
Pre-Engagement of a Lawyer
- Seek to negotiate a capped fee for WorkCover impairment claims
- — If a lawyer says this is not possible or is unwilling to do this, ask why?
- Seek information and detail on disbursement funding
- — Some law firms might seek you to engage a third-party disbursement funder. This can significantly (and in my view generally unnecessarily) add to the final bill.
At Arnold Dallas McPherson we do not make our client’s engage third-party disbursement funders and we do not add any charges for paying disbursements upfront. By doing this we save our clients significant costs – sometimes thousands of dollars – compared to other law firms that require clients to utilise disbursement funding.
- — Some law firms might seek you to engage a third-party disbursement funder. This can significantly (and in my view generally unnecessarily) add to the final bill.
- Ask to approve all major expenses
- — Negotiate with your lawyer that they agree to seek approval from you for any disbursement cost (say any cost above $1,000). Some medical practitioners will (not necessarily unreasonably) charge significantly for detailed medical reports. The cost (or full cost) is not always recoverable and in some cases the report may not even be necessary.
- Seek a second opinion if you are not happy with the proposed costs.
- Seek advice on what the claim might be worth.
- The reality is at an early stage, and without medical information, it can be very hard for a lawyer to confidently predict an amount or range for an impairment compensation. However, a competent lawyer should be able to advise a general range of what the claim may be worth.
During the Claim – How to Keep Costs Down
- Attend all medical appointments
- Respond promptly to requests from your lawyer
Don’t pester your lawyer for unnecessary weekly updates Missed appointments, delays in providing information and instructions, and frequent calls can add time and cost to your claim.
When You Receive an Offer
- Take time to consider the advice and information provided. Your options may include:
- — Accepting the initial offer
- — Disputing liability for any rejected injury at conciliation
- — Referring your impairment determination to a Medical Panel
- Seek advice on further options and claims
- — Such as the potential to make a common law claim
Whilst different claims stand separately there can be some overlap, and the merits and viability of a common law claim can effect advice and a decision in regard to an impairment compensation offer so it is important to seek legal advice
- — Such as the potential to make a common law claim
- Ask for details of final costs your lawyer proposes to charge
- — Compare the costs proposal with the estimate/agreement provided in the original signed contract and ask for explanations if they are different
- Seek a second opinion if you are concerned or unhappy with your lawyer’s advice or their proposed costs
Final Thoughts
WorkCover impairment claims provide helpful financial assistance — but they are often modest payments. Legal fees should always be proportionate to the work involved.
If fees seem excessive, question them.
