Whether an employee who has suffered a workplace injury and is receiving workers’ compensation benefits can also bring a claim under the Fair Work Act 2009 (Cth) (FW Act) is a question that arises more often than you might think.
Claims for workers compensation benefits are made in respect of an injury/illness sustained at work, while claims under the FW Act concern breaches of workplace laws.
With this in mind, we have reviewed the decision of Leggett v Hawkesbury Race Club Limited (No 4) [2022] FCA 622. This case demonstrates the clear distinction between the operation of the workers compensation scheme and the FW Act.
Case Background
Ms Leggett was employed by the Hawkesbury Race Club Limited (the Club) between 1991 and 2017. Following the appointment of a new CEO in 2016, Ms Leggett alleged that she was subjected to bullying and intimidation, including the removal of her authority, public humiliation, and ongoing scrutiny of her work. Shortly after raising complaints, she ceased work and accessed her personal leave and was diagnosed with major depressive disorder and anxiety. She later alleged that the Club had repudiated her employment contract, which she accepted.
Ms Leggett subsequently pursued:
- A claim for workers’ compensation benefits under the Workers Compensation Act 1987 (NSW) (WC Act), which was accepted; and
- A general protections claim under the FW Act for prohibited adverse action leading to her injury and the termination of her employment.
The Federal Court of Australia determined that:
- the Club had contravened the FW Act; and
- that Ms Leggett had suffered a psychiatric injury and other damage because of those contraventions.
The Club argued that the claim under the FW Act should be dismissed, alleging that Ms Leggett would be doubly compensated for her injury if the FW Act claim proceeded.
The Court’s Decision
The Court held that:
- Workers’ compensation benefits under the WC Act are intended to compensate employees for losses resulting from a workplace injury, including past and future economic loss and treatment and rehabilitation costs.
- Compensation under the FW Act may be awarded when an employer’s contravention of workplace laws causes loss or damage to an employee.
- The WC Act could not operate to restrict the Court from awarding compensation under the FW Act.
- However, an employee is not entitled to receive double compensation for the same loss.
The Court ordered the Club to pay compensation to Ms Leggett for its FW Act contraventions, reduced to account for workers’ compensation benefits already received. The decision confirms that employees may pursue remedies under both the FW Act and workers’ compensation legislation, provided there is no double recovery for the same loss.
The approach adopted in Leggett is consistent with the earlier decision of Friend v Comcare [2021] FCA 837. In that case, a former Australian Federal Police officer received workers’ compensation benefits through Comcare and later settled separate sexual harassment and discrimination claims against her employer. The Federal Court held that Comcare could not recover the workers’ compensation payments from the settlement because those statutory remedies were distinct from the workers’ compensation entitlements.
Key Takeaways
- Employees should be aware that receipt of workers’ compensation benefits does not prevent them from bringing claims under the FW Act.
- Employees are not entitled to double compensation for the same loss.
Need Assistance?
Nicole Dunn Lawyers are experts in employment and workplace law. If you have any questions about workers’ compensation or employment law issues, we are here to help.
Please contact us on 1300 717 147 or by email at office@ndlaw.com.au.
Disclaimer: This publication has been provided for general guidance only and does not constitute professional legal advice. You should obtain professional legal advice before acting on information contained in this article.
This article was prepared by: Nicole Dunn, Thomas Wyer and Mellissa Dunn