Am I entitled to a lump-sum compensation payment?
Statutory lump sums, common law damages, and settlement — how they differ.
Last reviewed
In one sentence
There are different kinds of lump sums — some are set by a table, others depend on proving negligence.
What this means
A statutory lump sum is paid under the workers' compensation laws, usually based on your permanent impairment percentage. It does not depend on fault.
A common law claim is a claim for negligence against your employer (or someone else). It can include damages for lost earning capacity and, in some schemes, pain and suffering. Most schemes require a minimum level of impairment or a 'serious injury' finding.
Some schemes also allow 'commutation' or settlement of future entitlements. Accepting a settlement can end other rights, so independent advice is important.
Things to know
- Statutory lump sums depend on impairment, not fault.
- Common law depends on negligence and usually a threshold.
- Settling may end weekly payments and medical benefits.
- Time limits for common law claims can be strict.
Common questions
How much could I get?
It depends on your scheme, impairment and losses. Be cautious of anyone who promises a figure without assessing your case.
Can someone other than my employer be responsible?
Yes — for example a negligent driver, a host employer or a manufacturer. These are sometimes called third-party claims.
Will Centrelink want money back?
Possibly. Compensation can create a Centrelink preclusion period or repayment. Get advice before settling.
What you can do next
- 1Check your scheme's lump-sum and common law thresholds.
- 2Keep records of all financial losses.
- 3Get a free first consultation with a workers' compensation lawyer.
- 4Ask about all costs in writing before signing a costs agreement.
General information only. Rules change and depend on your circumstances. Check with your regulator or get independent legal, financial or medical advice about your situation.