If you’ve been injured at work, you might wonder: Who’s actually paying for my compensation? The good news is, it’s usually not coming out of your employer’s pocket.
In Queensland, workers’ compensation is funded through two main systems: the statutory scheme (run by WorkCover Queensland) and self-insurance for some large employers. Knowing how these systems work can ease the stress of making a claim and help you feel more confident about exercising your rights.
Statutory Workers' Compensation: WorkCover Queensland
How the System Works
Most employers in Queensland, around 97%, are insured through WorkCover Queensland, the state’s statutory workers’ compensation scheme. It’s designed to protect both employees and employers when someone gets hurt on the job.
Here’s how it works when a worker is injured:
- Employers pay an annual premium, based on their industry risk and payroll size
- WorkCover Queensland handles the claim and covers key costs, including:
- Medical and treatment expenses
- Wage replacement (up to 85% of your normal earnings)
- Rehabilitation and return-to-work support
- Lump sum payments for permanent impairments
This setup ensures injured workers get the help they need, without directly impacting the employer financially.
According to WorkCover Queensland, this arrangement ensures injured workers receive timely support without placing direct financial strain on employers.
Key Features of the System
Queensland’s workers’ compensation system operates under a no-fault scheme. That means if you’re injured at work, you can access statutory benefits without having to prove your employer did anything wrong. It’s designed to get help to workers quickly, without the stress of establishing fault.
It also protects employers. WorkCover Queensland absorbs the cost of most claims, shielding individual businesses from direct financial liability. Instead, expenses are shared across all insured employers through an industry-based premium system.
Self-Insured Employers
Who Can Self-Insure?
Large employers with over 2,000 full-time Queensland employees can apply to become self-insurers. According to Queensland Government business resources, these employers:
- Manage claims internally through their own systems
- Fund compensation payments directly from company resources
- Must follow the same legal requirements and provide the same benefits as WorkCover
Major Queensland self-insurers include retailers like Woolworths and Coles, along with other large employers.
Comparing WorkCover and Self-Insurance
Worker Rights with Self-Insurers
If you work for a self-insured employer, your entitlements are exactly the same as if your claim were handled by WorkCover Queensland.
Self-insurers are large companies approved to manage their own workers’ compensation claims, but they must follow the same rules. The Workers' Compensation Regulator oversees these employers to ensure they provide:
- The same statutory benefits for medical expenses and lost wages
- Access to common law claims if employer negligence can be proven
- Equivalent claim management standards and timelines
So even if your employer handles the claim in-house, your rights and protections remain the same.
Common Law Claims: Who Pays?
If your injury was caused by your employer’s negligence, you may be entitled to pursue a common law claim, which can provide compensation beyond the standard statutory benefits.
This could include:
- Pain and suffering
- Future loss of income
- Loss of earning capacity
- Other long-term impacts on your quality of life
Who pays that compensation depends on your employer’s insurance status:
- If your employer is covered by WorkCover Queensland, they handle the payment
- If your employer is self-insured, they pay the compensation directly
Either way, your legal entitlements remain the same, it’s the funding mechanism that changes.
Example: A café worker injured due to faulty equipment receives statutory benefits from WorkCover. If negligence is proven, WorkCover also pays any common law damages awarded, not the employer directly.
According to the Queensland Government, this system ensures workers can pursue their legal rights without concern about their employer's ability to pay.
Worker Protections & Employer Obligations
If Your Employer Doesn't Have Insurance
Under Queensland law, all employers must have workers’ compensation insurance, but if yours doesn’t, you’re still protected.
Here’s what happens if your employer is uninsured:
- WorkCover Queensland will still process and pay your claim, so you won’t miss out on support
- WorkCover will then recover the costs directly from your employer
- Employers can face penalties of up to $189,543.75 for corporations that fail to insure
- You’ll receive the same entitlements as any other injured worker
Uninsured or not, your rights remain the same, and you shouldn’t hesitate to make a claim.
The Workers' Compensation Regulator actively enforces compliance to protect Queensland workers.
Common Concerns Addressed
Myth: "My claim will financially hurt my employer."
Reality:
- WorkCover-insured employers only pay premiums, not individual claims
- Self-insurers budget for claims as part of operational costs
- Premium increases apply industry-wide, not just to individual employers
Myth: "Management can pressure me to not claim."
Reality:
- Retaliatory action (such as dismissal) for making a claim is illegal
- Employers must forward all injury notifications to their insurer
- You can report coercion to the Workers' Compensation Regulator
Key Takeaways
- 97% of employers in Queensland are insured through WorkCover Queensland
- Large employers may be self-insured, but must offer the same benefits
- The system is designed to protect both workers and employers
- If your employer is covered by WorkCover, they don’t pay your compensation directly
- Making a legitimate claim is your legal right, and the law protects that right
No matter who insures your employer, your entitlements stay the same, and you should never feel guilty about exercising them.
Next Steps: Deciding if You Need to Seek Legal Advice
Not every workers’ compensation claim needs a lawyer, but when things get complicated, the right advice can make all the difference. If your claim has been denied, if there’s a dispute over negligence, or if you’re unsure about pursuing a common law claim, it’s worth getting legal support early.
At Smith’s Lawyers, we offer free case reviews and handle injury compensation claims. We cover Queensland, including Brisbane, the Gold Coast, Sunshine Coast, Logan, Ipswich, Cairns, Toowoomba and Townsville.
And with our No Win, No Fee, No Catch® promise, you won’t pay a cent unless we successfully resolve your claim.
📞 Call 1800 960 482 or start your free claim check online today.
Frequently Asked Questions
Can my employer refuse my workers' compensation claim?
No. Employers must forward all claims to WorkCover or their internal team (if self-insured). Any disputes about claim acceptance are resolved through the Workers' Compensation Regulator, not by the employer.
What if I work for a subcontractor without insurance?
The principal contractor is liable. WorkCover pays your claim and pursues recovery from them. This ensures workers are protected even in complex contracting arrangements.
How long do I have to file a common law claim?
Generally 3 years from the injury date, but exceptions apply for latent injuries. Seeking early legal advice is recommended as time limits are strictly enforced.
Are self-insurers less likely to approve claims?
No. Self-insurers follow the same legal standards as WorkCover and are regulated by the Workers' Compensation Regulator to ensure consistent application of the law.
