Returning to work is the outcome you, your employer and doctor work towards. In some cases, you may be left with a permanent impairment or incapacity for work, and entitled to a lump sum payment to finalise your workers’ compensation claim.

You need to be aware that there are different pathways and rules for settling workers' compensation claims depending on whether the settlement relates to a statutory compensation claim or a common law action.

Before making a decision on any option you should seek independent advice or contact WorkCover WA's Advisory Services for more information.

Types of settlements

There are different types of settlements available within the statutory workers' compensation system. Schedule 1 and Schedule 2 Settlements each have criteria you must meet to qualify.

Settlements can also be made for common law actions pursued in the courts, however different criteria applies. You can read more about common law claims and the restrictions that apply to the awarding of damages on the Common law claims page.

Schedule 1 settlements

If you have received weekly payments for at least six months and have a permanent total or permanent partial injury, you may be eligible for a Schedule 1 settlement (also known as a ‘redemption’).

For a Schedule 1 settlement, you may be assessed for the degree of your impairment and can then negotiate with your employer’s insurer regarding the lump sum amount you receive.

Note that the terms of Schedule 1 settlements do not allow you to pursue any other compensation, and you waive your right to pursue a common law claim.

Schedule 2 settlements

You can proceed with a Schedule 2 settlement at any time to finalise your claim.

For a Schedule 2 settlement, you will be assessed for the degree of your impairment and then receive a set amount for that impairment. The amount is set by the Prescribed Amount - Table of Compensation Payable.

The amount is not negotiable.

While a Schedule 2 settlement finalises your workers’ compensation entitlements, you may still seek damages through a common law claim.

Seeking a settlement

Once you and your employer’s insurer agree on the assessed percentage of permanent impairment and the type of settlement, in most cases your employer’s insurer will prepare the necessary paperwork for your signature. It is then lodged with the Conciliation and Arbitration Services (CAS), which will review and record the details of your settlement.

Note: once your claim is finalised, the payment for your settlement comes from your employer’s insurer. The CAS does not pay out settlements or redemptions.

A settlement may affect your other entitlements

Acceptance of a settlement may affect your entitlement to Centrelink benefits, so it is important to contact Centrelink before making a final decision on accepting a settlement. It may also be advisable to contact the Australian Taxation Office, Medicare and your private health insurance fund to find out if there are other possible implications of accepting a settlement.