Can I Change Jobs While on Workers Compensation in WA?

Quick Answer: How Changing Jobs Affects Workers’ Compensation in WA

Worried about losing your WorkCover benefits if you switch jobs? You’re not alone—thousands of injured workers in WA ask the same question. The short answer? Yes, you can change jobs while on workers’ compensation, but you need to be smart about it. Your weekly payments, medical benefits, and entitlements may be affected. Here’s what you need to know.

👉 Need a quick assessment? Use our Free Workers Compensation Claim Check.

What Happens to My Workers Compensation if I Change Jobs?

1. Will My Weekly Compensation Payments Stop?

Workers’ compensation weekly payments are based on your pre-injury average weekly earnings (PIAWE). If you change jobs while on workers’ compensation, your payments may adjust depending on your new income:

• No Job → Income compensation continues. If you were able to perform some work prior to ceasing work, it is likely the insurer will try to get evidence to show that you are totally fit for work and thereafter cease income compensation payments.
• New Job Pays More → Weekly payments stop.
• New Job Pays Less → You may still receive top-up payments to cover the difference. In the longer term, your workers compensation benefits may be impacted as it is quite likely that the workers compensation insurer, on behalf of your previous employer may bring an application to cease your income compensation on the basis that you have capacity for other work.
• Part-Time Work → Payments adjust based on hours worked and doctor’s assessment. In the longer term, your compensation may be impacted as it is quite likely that the workers compensation insurer, on behalf of your previous employer may bring an application to cease your income compensation on the basis that you have capacity for full time work in another job. The argument that you have chosen to work time but you could get a new job working full time and could earn your PIAWE.

Example Scenario: A worker earning $1,400 per week pre-injury who takes a $1,100 per week job after recovery may still receive $300 weekly top-ups. The employer may choose to make an application to WorkCover WA stating that the worker has the capacity to earn the PIAWE and therefore they should not receive any income compensation through their compensation claim.

👉 See how income affects your claim: WorkCover WA Guide for Workers​

2. Will My Medical Expenses Still Be Covered?

Yes. WorkCover WA continues covering medical expenses if they relate to your original work-related injury, even if you switch employers. However:

• There is a requirement that medical expense are reasonable. In assessing whether the expenses are reasonable, it will be considered whether the expense is reasonably necessary for the worker to incur the expense.
• WorkCover may review your case and determine if further treatment is necessary.

👉 Learn more about WorkCover WA medical entitlements: How to Get Workers Comp to pay your medical bills.

3. Do I Need My Doctor’s Approval to Start a New Job?

There is no legal requirement  under workers compensation legislation that you need approval from your doctor before starting a new job, however, it is recommended that before you start a new job, you obtain a Certificate of Capacity from your treating doctor confirming that:

• You are fit for the new job.
• The job is unlikely to worsen your injury.
• The duties align with your work restrictions.

If you obtain a new job without informing your General Practitioner then this may affect your work related injury compensation claim at a later time. This is because if a worker told their doctor that they have no capacity to work, and then they work in a job then it could seem that the worker is dishonest.

👉 Find out all you need to know about workover WA entitlements.  

4. Will Changing Jobs Affect My Common Law Claim Entitlements?

If you have a whole person impairment of less than 15% then you can elect to pursue a common law claim against your employer.

Physical Injury Claims: Changing jobs will not ordinarily affect your WPI. Your WPI should remain the same regardless of employment. In some situations, the Approved Permanent Impairment Assessor may consider the work you are doing as part of the overall assessment of your WPI but it would be unusual for this to affect your WPI.

Psychological Injury Claims: WPI is assessed using the Psychiatric impairment rating scale (PIRS). Table 11.6: PIRS assesses Employability. Essentially if you are totally incapacitated from employment then you obtain the highest score (Class 5). If you are totally fit for your pre-injury work then you obtain the lowest score (Class 1). For instance, Class 3 is as follows: “Moderate impairment: cannot work at all in same position. Can perform less than 20 hours per week in a different position, which requires less skill or is qualitatively different (eg, less stressful).”

Damages: You work capacity, in general, will affect damages. Usually a worker with no capacity for work will be awarded a greater amount than a worker who is able to safely undertake new work.

Some other considerations are:

• Switching jobs could affect your claim.
• Your new income may reduce your future economic loss calculation. See damages above.
• If you resign without a valid reason, the insurer may argue that you voluntarily reduced your earnings.

If you are considering suing your employer for negligence, get legal advice from specialist WA personal injury & workers compensation lawyers before changing jobs.

Can I Resign While on Workers’s Compensation?

Yes, You can resign your employment whilst you are on workers compensation.

If You Resign Without a New Job:

• Situations frequently arise where your employer says that prior to the resignation you returned to work without the need for workers compensation and therefore your right to compensation came to an end. It is a common assertion that the decision to resign was a personal decision and you were willing and able to work previously.
• You keep medical benefits, but WorkCover may question your need for further treatment.
• Your employer has no obligation to rehire you.

If You Secure a New Job Before Resigning:

• Inform your former employer and the workers compensation insurer of the change and the identity of your new, current employer.
• Ensure your benefits are adjusted correctly.
• Get a doctor’s clearance for the new role.

If you resign due to workplace harassment, unfair treatment, or medical reasons, there may be a basis for further compensation but you should make sure you have good evidence of the situation.

Employer Responsibilities Under WorkCover WA

1. Return-to-Work Obligations

WA’s Workers Compensation and Injury Management Act 2023 requires employers to:

• Offer suitable duties for injured workers.
• Develop a Return-to-Work Program within seven days of a medical certificate indicating it is needed.
• Retain your position for 12 months, unless termination is for valid reasons unrelated to your injury.

If your employer fails to offer modified duties, you may be able to look for work elsewhere without losing all entitlements.

2. Can My Employer Fire Me While I’m on Workers’ Compensation?

• Your employer CANNOT terminate you just because you filed a claim.
• However, they CAN terminate you if:
  • The business shuts down.
  • They can prove your injury prevents you from working indefinitely.
  • They followed proper legal procedures (e.g., offering alternative duties first).

If you believe you were wrongfully terminated, seek legal advice immediately from an employment lawyer.

Checklist Before Changing Jobs

✅ Get a Certificate of Capacity from your doctor.
✅ Notify WorkCover WA and your insurer about your new job.
✅ Ensure your weekly payments or income compensation isadjusted correctly.
✅ Confirm that your medical benefits remain active.
✅ Understand your rights under WA’s workers’ compensation laws.
✅ If pursuing a common law claim, speak to a lawyer before changing jobs.

Mistakes to Avoid to Protect Your WorkCover Claim Benefits

• Failing to Notify the Workers Compensation Insurer → Can lead to fraud allegations, penalties, or loss of benefits.
• Taking a Job Beyond Your Medical Restrictions → Can cause injury aggravation and arguments that your medical certification is inconsistent with your actual capacity for work;
• Resigning Before Securing a New Job → Arguments that you have made a return to work and are not entitled to workers compensation benefits.
• Not Keeping Records → If your insurer disputes your entitlements, you’ll need proof.

👉 Learn more about resignation of employment while on workers comp in WA.

Dispute Resolution Steps if Payments Are Stopped

1. File a Dispute with WorkCover WA

• Submit a formal dispute request through WorkCover WA’s Conciliation and Arbitration Services.
• Provide evidence of your ongoing medical condition and employment details.

2. Seek Legal Advice

• If your insurer denies payments without valid reason, a lawyer can help recover lost benefits.
• Foyle Legal offers a free claim check to review your case.

3. Consider Filing for Arbitration

• If conciliation fails, arbitration may be necessary to legally enforce your claim.

👉 Learn who can lodge an application for conciliation at WorkCover WA.

FAQs: Changing Jobs While on Workers’ Compensation in WA

1. Can I work a second job while on workers compensation?

Yes, but you must declare your earnings. WorkCover may reduce payments based on your total income.

2. What if my new job pays more than my pre-injury job?

Your weekly compensation payments will stop, but your medical expenses may still be covered.

3. Can I be forced to return to work before I’m ready?

No. You must be medically cleared before returning to work.

4. Should I get legal advice before switching jobs?

Yes. If you are unsure about your rights, entitlements, or legal risks, speak to an experienced workers’ compensation lawyer in WA.

Final Thoughts

Changing jobs while on workers’ compensation in WA is possible, but must be handled correctly. Your weekly payments, medical benefits, and legal entitlements depend on how you transition to a new job.

📞 Call Foyle Legal Now: Contact Us
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Why Choose Foyle Legal?

Foyle Legal is a top-rated personal injury law firm in Western Australia, offering No Win, No Fee legal representation for eligible personal injury claims, including:

✔ WorkCover claims for both physical and psychological injuries
✔ FIFO injury compensation claims in WA
✔ Construction site injury claims
✔ Farm accident compensation claims
✔ Other workplace injury claims

With a proven track record of success, Foyle Legal is committed to helping injured workers get the compensation they deserve.

📞 Get expert legal advice today! Contact Foyle Legal