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At Law Partners, we’re passionate about standing up for injured workers. And right now, we’re concerned.
The NSW Government has just released a draft proposal to reform the state’s workers compensation system. While the goal is to improve how psychological injuries are handled, we believe the current draft could make things harder for people who are already struggling.
That’s why we’ve responded to the NSW Government’s release of its Workers Compensation Exposure Draft with serious concerns about the potential impact on workers suffering from psychological injuries.
The proposed reforms, announced by NSW Treasurer Daniel Mookhey, aim to differentiate psychological injuries from physical injuries and rebalance the system toward prevention. However, we believe the changes risk prioritising cost-cutting over care, particularly for those most in need of long-term mental health support.
Chantille Khoury, Partner and Practice Group Leader for Workers Compensation at Law Partners, said, “Leading our NSW workers compensation team, I’ve witnessed firsthand the devastating impact of psychological workplace injuries on our clients’ lives. Often, these injuries result in prolonged absences from work, making even the thought and possibility of re-entry into the workforce, a traumatic experience.”
“In my view, this issue is about protecting the workers of NSW, their rights, entitlements, and mental health. While rebalancing the system towards prevention is important, we must ensure it doesn’t become a superficial, tokenistic or financially motivated exercise.”
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Law Partners supports reform that reduces inefficiencies and better defines psychological injuries through medical expertise. However, we strongly believe that any systemic changes must not compromise the psychological safety of NSW employees.
“Any future changes to the workers compensation system in NSW must be fit for purpose,” Chantille Khoury added, “accounting for a range of psychological injuries alongside the traditional physical injuries the system was initially designed for. This is the only approach that will adequately protect the rights of workers in NSW.”
We’re not alone in our concerns. Mental health experts have also spoken out, warning that the proposed reforms could downplay the real experiences of injured workers. Law Partners aligns with the concerns raised by mental health professionals, including Dr Katrina Norris of the Australian Association of Psychologists, who recently warned that the proposed reforms risk diminishing the lived experiences of injured workers (in The Mandarin).
As the Exposure Draft enters parliamentary inquiry, Law Partners urges policymakers to ensure that reform does not come at the expense of the very people the system is meant to protect.
As the draft heads into parliamentary review, we’ll be watching closely – and continuing to advocate for a system that protects all workers, both physically and psychologically.
If you or someone you know is dealing with a workplace injury, we’re here to help.
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