Workers Compensation Payout Guide NSW.
If you’ve been injured at work in NSW, you probably know you’re entitled to workers compensation to cover your lost wages and medical expenses. But you may not know that in NSW, around $1.27 billion […]
Workplace Bullying Compensation Payouts Guide.
Workplace bullying is a serious problem in Australia and a risk factor for anxiety, depression, and suicide.* If it leads to psychological injury or illness, workplace bullying compensation payouts can be substantial, especially if management has failed to address it.
According to Safe Work Australia, over 3000 workers are awarded compensation for mental disorder claims caused by bullying, harassment, or exposure to violence in the workplace every year.**
Our lawyers have extensive experience in making successful claims for bullying in the workplace. In this article, we explain everything you need to know about claiming compensation, including:
- How to find out if you’re eligible to claim
- Examples of successful claims we’ve made and payout amounts
- How to make a workplace bullying claim and receive the maximum compensation payout available to you, which may include a substantial lump sum.
*Source: https://www.beyondblue.org.au/mental-health/work/bullying-harassment
**Source: https://www.safeworkaustralia.gov.au/system/files/documents/1702/work-related-mental-disorders-profile.pdf
Quick summary: workplace bullying compensation.
Eligibility: You need a diagnosed psychological condition or physical injury caused by workplace bullying.
Compensation types: Weekly payments for lost income and medical expenses; lump sums for permanent impairment and work injury damages.
Payout range: From thousands of dollars to over $1 million, depending on the severity of your injury and impact on your life.
Permanent impairment threshold: You need at least 15% whole person impairment to claim a lump sum.
Our success rate: We win over 99% of our cases.
No win, no fee: You only pay us after you receive your compensation.
Important update: NSW workers compensation laws are changing from 1 July.
If your work has affected your mental health, it’s important to understand how upcoming changes to the NSW law may affect your rights.
From 1 July 2026, stricter requirements will apply to psychological injury claims. This means workers who may qualify under the current rules may not qualify once the new laws take effect. To learn more about what’s changing and what it could mean for you, read this page.
Workplace bullying compensation – what you need to know.
Clients generally come to us with one of the following situations:
1. I feel like I’m being bullied at work, but I’m not sure.
Workplace bullying involves repeated, unreasonable behaviour that creates a risk to your health and safety. Learn more about workplace bullying in the next section of this article, including some simple questions you can ask yourself to help you find out if you’re being bullied.
2. I’m being bullied at work and want to know if I can claim compensation.
You can claim compensation if you’ve been diagnosed with a psychological condition caused by workplace bullying. To be eligible, you’ll need medical evidence linking your condition to the bullying you experienced.
3. I want to know how much compensation I can claim for being bullied at work.
Compensation payouts for bullying in the workplace can range from thousands of dollars to over one million dollars, depending on the severity of your injury and its impact on your life. Learn how compensation is calculated and what you may be entitled to claim.
4. I want to make a compensation claim for workplace bullying.
If you’re ready to make a claim, this article explains what to do next, how to get free legal advice, and how to claim your full entitlements.
Get FREE claim advice today.
A specialist lawyer will review your circumstances and tell you how much you can claim.
How to recognise workplace bullying
According to Beyond Blue: ‘Workplace bullying is repeated, and unreasonable behaviour directed towards an employee or group of employees, that creates a risk to health and safety.’
It’s important to note that this behaviour doesn’t have to be face-to-face; it can be online over email, social media, online work platforms or over the phone.
Ask yourself:
If you answered yes to any of these questions, and you’ve been repeatedly subjected to the behaviour, it’s likely you’re being bullied.
- Have you had abusive or offensive language or comments directed at you?
- Have you experienced aggressive and intimidating behaviour?
- Have people made belittling or humiliating comments to you? Do you feel like you’ve received unjustified criticism or complaints?
Watch our senior lawyer explain what constitutes workplace bullying and when you can claim compensation:
Am I eligible for workplace bullying compensation?
Start by asking yourself these three questions:
- Have you seen a doctor or another practitioner who has diagnosed you with a psychological condition?
- Have you suffered any physical injuries or illnesses?
- Was your psychological condition, injury, or illness a direct result of workplace bullying?
If you answered yes to questions 1 or 2, and question 3, it’s likely you’re entitled to compensation for workplace bullying.
The third question can be hard to answer, especially with psychological injuries and illnesses. But if you believe that workplace bullying was the cause, then the next step is to get some help with documenting your case and gathering evidence.
You can call 0292644474 and speak to one of our specialist Sydney workers compensation lawyers who can advise you over the phone on whether you have a valid claim, and how to pursue your claim. There’s no cost for this service.
Understanding ‘reasonable management action’.
To work out whether you can claim, it’s important to understand how employers typically respond to workplace bullying claims.
In our experience, we find employers often argue that our client wasn’t bullied and that they took ‘reasonable management action’ – which is action taken relating to work performance that they argue was reasonable. This can include disciplinary action, demotion, transferring out of a department and even dismissal.
To be eligible for workplace bullying compensation, we need to show evidence that your treatment wasn’t reasonable. For example, if your employer failed to follow company policies and procedures in taking disciplinary action that caused your psychological injury or illness, then it may be considered unreasonable.
Workplace bullying vs. reasonable management action.
Understanding the difference between workplace bullying and reasonable management action can be crucial to your claim. Here’s what sets them apart:
| Workplace Bullying | Reasonable Management Action |
| Repeated, unreasonable behaviour that creates a risk to health and safety | Legitimate performance management, conducted in a fair and reasonable manner |
| Abusive, offensive, or humiliating comments directed at you personally | Constructive feedback about work performance delivered professionally |
| Aggressive, intimidating behaviour that goes beyond what’s necessary | Setting clear expectations and monitoring performance according to company policy |
| Unjustified criticism or complaints not based on actual performance issues | Documented performance concerns with evidence and examples |
| Failure to follow company policies and procedures when taking action | Following proper processes for warnings, performance improvement plans, or disciplinary action |
| Singling you out for treatment that others don’t receive in similar circumstances | Consistent application of workplace policies to all employees |
| Actions taken with the intent to humiliate, intimidate, or harm you | Actions taken to address genuine workplace issues or maintain standards |
If you’re unsure whether what you’ve experienced crosses the line from reasonable management into bullying, we can help you understand your situation. Our lawyers will review the specific circumstances of your case and can tell you whether you have grounds for a compensation claim.
How much compensation can you claim?
Workplace bullying compensation payouts in NSW range from thousands of dollars to over one million dollars. The amount you receive depends on the severity of your psychological injury, your level of permanent impairment, lost income, medical expenses, and whether your employer was negligent in preventing or addressing the bullying.
Here are the types of compensation you may be entitled to:
| Workers Compensation Payments NSW | Description |
| Weekly payments | These are payments to compensate you for lost income while you’re off work. |
| Medical expenses | Payment of your medical, hospital, ambulance, rehabilitation (including home help) and travel expenses. |
| Permanent Impairment payout | A lump sum compensation payout to cover a permanent impairment as a result of a work-related injury or illness. |
| Work Injury Damages payout | Also known as a common law claim, this is a lump sum payout for damages if your injury was caused by your employer’s negligence. |
To be eligible for a lump sum payout for permanent impairment, a medical assessor will need to determine that your injury is a primary psychological injury and assess your ‘permanent impairment’ to be at least 15%.
Permanent impairment lump sums can be substantial. To make a successful claim for a permanent impairment lump sum, it’s important that your psychological illness or injuries are assessed and documented correctly and supported by comprehensive evidence that they were caused by workplace bullying. For more information, read our whole person impairment compensation calculator and guide.
In a well-publicised case in 2016, a NSW government agency employee was awarded over $1 million for total and permanent disablement based on a psychological injury, and past and future loss of earnings. Her injury was caused by workplace bullying and harassment on the part of her immediate manager and another manager at the agency.
Our specialist workers compensation lawyers have extensive experience in claiming compensation for workplace bullying. With local offices across NSW, we can arrange medical assessments for you and gather all the evidence needed to support your claim. We’ll also fund your claim for you, so you’ll only need to pay us back after you’ve received your compensation.
Call 02 9264 4474 or chat to us now for free advice
Chat nowFind out how much you can claim.
Get startedWorkplace bullying NSW case study – recent compensation paid for workplace bullying.
The situation
We recently represented a client, Janice, who was a teacher at a primary school and was subjected to intimidating and humiliating behaviour by a colleague over an extended period. Janice’s colleague would not only belittle her in front of other staff members but also in front of her students.
Janice initially reported the behaviour to her principal, but the principal failed to take any action. It continued and as a result, Janice became deeply affected. Physically, she lost weight, couldn’t sleep and suffered from indigestion. Mentally, she lost all confidence and was constantly reliving aspects of the abuse in her mind. Janice was eventually diagnosed with PTSD and was certified unfit to continue working as a teacher.
Taking action
Janice’s husband, Steve, was desperate to help her and after Googling ‘workplace bullying compensation’ he came across Law Partners. He spoke with one of our specialist workers compensation lawyers who listened to the situation and told him that Janice could be eligible for compensation. Janice met with Law Partners and immediately after that initial meeting, her lawyer got the ball rolling on her claim.
The evidence
Janice’s lawyer gathered evidence, contacted her employer’s insurer and helped arrange an independent assessment to determine her level of permanent impairment. The diagnosis of PTSD was confirmed, and Janice was assessed as having 19% whole person impairment. As a result, we were able to claim a lump sum for permanent impairment. Given the fact that her employer failed to put measures in place to stop the bullying after being made aware of it, Janice’s lawyer’s attention then turned to pursuing a damages claim.
The result
Armed with medical evidence, supporting statements from staff and a thorough understanding of exactly how the injury has impacted her life, Janice’s solicitor went to mediation and successfully settled the claim. Including the lump sum for permanent impairment, Janice’s workplace bullying compensation payout exceeded $400,000.
How to claim your maximum compensation.
To make a successful claim, you need to make sure your psychological condition and its impact on your life have been thoroughly assessed, and you need to prove your condition was caused by bullying at work. These claims are vigorously defended by workers compensation insurers, so you’ll need strong evidence and a well-prepared claim.
Here are the key steps to maximise your compensation:
Document everything from the start.
Try to keep detailed records of bullying incidents — dates, times, what was said or done, and who witnessed it. Save emails, text messages, and any other evidence. Take notes after each incident while the details are fresh. This documentation becomes crucial evidence when we build your claim.
Seek medical assessment early.
Don’t wait until your condition worsens. See your GP or a psychologist as soon as you notice symptoms like anxiety, depression, or sleep problems. Early diagnosis not only helps your recovery but also establishes a clear link between the workplace bullying and your psychological injury. Your medical records will form the foundation of your claim.
Get specialist legal advice before lodging your claim.
Our specialist workers compensation lawyers understand exactly how to present your case to achieve the best outcome. We know how to gather the right evidence, arrange proper medical assessments, and navigate the complex claims process. Our experience means we can often identify entitlements you didn’t know existed — like permanent impairment lump sums and work injury damages claims.
Don't accept the first offer.
Insurance companies often make low initial offers hoping you’ll accept quickly. Our specialist lawyers consistently win higher settlements because we understand the true value of your claim and we’re prepared to fight for every dollar you’re entitled to. We’ve seen cases where initial offers were less than half of what we eventually secured for our clients.
As a first step, you can talk to one of our specialist workers compensation lawyers and get some free legal advice, including a professional opinion on the strength of your case.
If you decide to proceed with your claim, we’ll offer to work for you on a no win, no fee basis, so you’ll only need to pay us after you receive your compensation. We win over 99% of our cases.
Key takeaways.
You can claim workplace bullying compensation in NSW if you’ve been diagnosed with a psychological condition or physical injury caused by repeated, unreasonable workplace behaviour—over 3,000 NSW workers receive compensation for mental disorder claims related to bullying annually.
Compensation payouts range from thousands to over $1 million and include weekly payments for lost income, medical expenses, permanent impairment lump sums (requiring at least 15% whole person impairment), and work injury damages if employer negligence is proven.
Employers often defend claims by arguing they took “reasonable management action,” so you’ll need strong evidence documenting the bullying behaviour, your psychological diagnosis, and proof that your employer failed to address the situation after being notified.
To maximise your payout, ensure your psychological condition is thoroughly assessed by medical professionals and gather comprehensive supporting evidence including witness statements, emails, and documentation of how the bullying has impacted your life and ability to work.
Our specialist workers compensation lawyers can assess your case for free, work on a no win no fee basis (you only pay after receiving compensation), and handle evidence gathering, medical assessments, and negotiations with insurers who vigorously defend these claims.
Workplace bullying compensation FAQs.
Can I claim workplace bullying compensation if I haven't been physically injured?
Yes, absolutely. Most workplace bullying compensation claims in NSW are for psychological injuries like anxiety, depression, or PTSD rather than physical harm. As long as you’ve been diagnosed with a psychological condition caused by bullying at work, you’re entitled to claim compensation—and these claims can result in substantial payouts.
How long do I have to make a workplace bullying compensation claim in NSW?
You generally need to report your injury to your employer within six months of becoming aware that your psychological condition was caused by workplace bullying. However, there are exceptions, and we’ve successfully helped clients who reported outside this timeframe. It’s best to speak with a specialist lawyer as soon as possible to protect your rights.
What evidence do I need to prove workplace bullying for a compensation claim?
You’ll need a medical diagnosis showing your psychological condition, plus evidence that workplace bullying caused it. This can include emails, text messages, witness statements from colleagues, records of complaints you made to management, and documentation of how the bullying affected your work and daily life. We help clients gather and organise this evidence to build the strongest possible case.
Can I still claim compensation if my employer says the treatment I received was reasonable management action?
Yes, you can. Employers often argue they were taking “reasonable management action,” but we regularly challenge this defence. If your employer failed to follow proper procedures, acted excessively, or didn’t address bullying after you reported it, their actions likely weren’t reasonable. We’ve successfully claimed compensation for many clients in exactly this situation.
Will I lose my job if I make a workplace bullying compensation claim?
No, it’s illegal for your employer to dismiss or disadvantage you for making a workers compensation claim.
How much does it cost to hire a lawyer for a workplace bullying compensation claim?
Nothing upfront. We work on a no win, no fee basis, which means you don’t pay us unless we secure compensation for you. We also fund all the costs of your claim—including medical assessments and expert reports—so there’s no financial risk to you. You only pay our fees after you receive your compensation payout.
Can I claim workplace bullying compensation if the bully was a coworker rather than my manager?
Yes, you can. Your employer has a legal duty to provide a safe workplace, which includes protecting you from bullying by anyone at work—managers, supervisors, or colleagues. If your employer knew or should have known about the bullying and failed to stop it, you’re entitled to claim compensation for any psychological injury that resulted.
What's the difference between a permanent impairment payout and a work injury damages claim for workplace bullying?
A permanent impairment payout compensates you for the lasting psychological impact of workplace bullying (you need at least 15% whole person impairment to qualify). Work injury damages—also called common law claims—are lump sum payouts for loss of income and future losses when your employer’s negligence caused your injury. You may be entitled to both, and we help you claim every dollar you’re owed.
Robert Hopper
Senior Managing Solicitor
An accredited specialist in personal injury law, backed by over 15 years’ experience in assisting injured Australians receive everything they’re entitled to with their workers compensation claim.
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