Terminating an Employee on Workers' Compensation in Queensland

Legal Framework for Termination during Workers' Compensation

In Queensland, employers may terminate an employee while the person is receiving workers' compensation benefits, but the dismissal must comply with the Industrial Relations Act 2016 and the Workers' Compensation Act 1987. The employee's claim must be fully processed and any outstanding benefits paid before the termination becomes effective. A written notice of termination must state the reason, reference the relevant legislation, and include the last pay date.

Timing and Documentation Requirements

Termination can only be executed once the workers' compensation claim has closed or the employee has been released from the insurer's obligations. Employers must retain copies of the claim closure, any settlement agreements, and the final payment details. Failure to do so can result in a breach of the Act and potential compensation claims.

Notice Periods and Pay‑Outs

Queensland law requires a minimum notice period of 28 days for employees with more than two years of continuous service. During the notice period, the employee remains entitled to workers' compensation benefits until the claim ends. Employers should calculate the final wage payout, including any accrued leave, and ensure it does not conflict with the insurer's payment schedule.

Risk Management and Compliance Checks

Before issuing a termination, conduct a risk assessment to confirm that the employee's injury or illness does not constitute a disability that would trigger protection under the Disability Discrimination Act 1992. Additionally, review the employee's performance records to avoid claims of unfair dismissal. Maintain a clear chain of communication with the insurer and the employee throughout the process.

Post‑Termination Procedures

After termination, submit a formal notice to the Workers' Compensation Authority within 10 working days, detailing the employee's final status and any outstanding payments. Keep the employee's medical records confidential and comply with the Privacy Act 1988. If the employee disputes the termination, they may lodge a complaint with the Queensland Industrial Relations Commission.

Practical Checklist for Employers

• Confirm claim closure and obtain insurer release.
• Prepare written notice with legal reference.
• Calculate final wage and leave payouts.
• Conduct risk assessment for disability protection.
• Submit post‑termination notice to authorities.
• Maintain confidentiality and compliance records.