Claiming Work Injury Damages (WID) for Depression and Anxiety
PK Simpson
PK Simpson

A psychological or psychiatric injury can be as debilitating as a physical one. Under NSW law, workers who sustain work-related injuries, whether psychological or physical, can pursue Work Injury Damages (WID) or workers’ compensation. PK Simpson understands the impact of depression and anxiety and can help you claim the damages you deserve.
If you have suffered a psychological injury resulting in anxiety or depression caused directly by your work duties, you may be eligible to claim workers’ compensation payments and make a personal injury claim.
A WID or work injury damages claim is different from a workers’ compensation claim. It is a common law claim where “damages” refers to a lump sum payment awarded for injury, loss, or harm suffered.
Where Your Psychological WID Claim May Fail
A claim for work injury damages for depression and anxiety is unlikely to succeed if the injury was caused by reasonable management action such as performance appraisals, demotion, redundancy, or dismissal.
However, a successful claim may be possible if it can be proven that employer negligence caused or contributed to your psychological injury. Obtain expert legal advice from PK Simpson to assess your claim.
The Process of Claiming WID for Psychological Injuries
Claiming WID requires a detailed diagnosis by your treating doctor, psychiatrist, or psychologist. Medical terminology must be correctly used in the Certificate of Capacity. General terms such as “stress” are insufficient.
Psychological injury claims allow compensation for past wage loss and estimated future loss of earning capacity only.
Work Injury Damages Criteria for Eligibility
To claim work injury damages for psychological injury, the following criteria must be met:
- Whole Person Impairment (WPI) must be at least 15% and assessed by an approved permanent impairment assessor.
- Employer negligence must be proven.
Proceedings should generally commence within three years of the injury date or confirmation of exceeding the impairment threshold.
What Can Cause a Psychological Injury?
Psychological injuries may result from workplace trauma, PTSD, anxiety, depression, or witnessing serious workplace incidents where employer negligence is involved.
- Unsafe working conditions
- Threats to job security
- Denied leave or time off
- Sexual or workplace harassment
- Bullying
Psychological claims may also accompany physical injury claims or arise from post-injury workplace mistreatment.
WID Settlements Rule Out Other Compensation Benefits
Once a WID claim is settled in NSW, all future workers’ compensation entitlements for that injury cease. Weekly payments already received may be deducted from the final settlement.
Signs of Psychological Injury
- Persistent sadness or anxiety
- Loss of interest or motivation
- Sleep disturbance or restlessness
- Difficulty concentrating
- Unwanted memories or flashbacks
- Social withdrawal or relationship breakdowns
How Are Psychological Injuries Treated?
Treatment may include therapy with a registered psychiatrist or psychologist, medication, and lifestyle changes. Recovery can be complex, especially for PTSD sufferers.
If your psychological injury resulted from work, file a workers’ compensation claim as soon as possible.
Contact PK Simpson
Contact PK Simpson
today to begin your psychological injury damages claim. We also work with experienced psychiatrists who assess claims using PIRS criteria.
Read more: When Should I Make a Workers Compensation Stress Claim?
Our Services
Learn More About Workers Compensation and Work Injuries
At PK Simpson, we help you understand your rights and options regarding workplace injuries and compensation.
Workers Compensation
- Injury at Work – What You Need to Know
- Workers Compensation Overview
- Filing a Workers Compensation Claim
- Workers Compensation Legal Support
Work-Related Injuries
Compensation Guides
- Back Injury Compensation Guide
- Understanding Work Injury Damages
- Carpal Tunnel Injury Compensation
- Repetitive Strain Injury Claims
For expert legal advice, contact PK Simpson today.