Stress leave in NSW

How does stress leave work in NSW?

For most people in NSW, stress leave is simply paid sick leave under the Fair Work Act. The rules are national, so they're the same in Sydney as in Perth. Full-time employees get 10 days of paid sick and carer's leave a year, part-time employees get a pro rata amount, and casuals don't get paid sick leave ^[9]. Fair Work says sick leave can be used for stress ^[9].

Your employer can ask for evidence, such as a medical certificate or a statutory declaration, even for a single day off ^[11]. Our main stress leave guide covers pay, notice, how long you can be off and your protections from dismissal.

NSW public servants are different. NSW state public sector and local government employees aren't covered by the national Fair Work system for these entitlements. They remain under the NSW state system ^[10], so your sick leave comes from your state award or public sector rules.

Can you claim workers compensation for stress in NSW?

Sometimes, but the bar is high and it got higher in 2026. Workers compensation is for a psychological injury caused by your work. It isn't a way to get paid for general stress at work, and the NSW scheme now says so directly.

NSW passed two reform laws: the Workers Compensation Legislation Amendment Act 2025 and the Workers Compensation Legislation Amendment (Reform and Modernisation) Act 2026 ^[5][6]. A small number of changes started on 27 March 2026 ^[6]. The main psychological injury changes started on 1 July 2026, with new eligibility criteria for psychological injuries notified from that date ^[1][5].

Which claims do the new rules cover?

The new requirements apply to primary psychological injuries first notified on or after 1 July 2026 ^[2]. They don't apply to ^[2]:

• primary psychological injuries notified before 1 July 2026
• secondary psychological injuries that arise because of a physical injury
• exempt workers, including police officers, paramedics and firefighters
• coal miners, volunteers and dust disease claims

What are the tests for a NSW psychological injury claim?

Under the new rules, a primary psychological injury must meet all three of these tests ^[2]:

1. It was caused by a relevant event, or a series of relevant events.
2. It has a real and direct connection to your employment.
3. Employment was the main contributing factor.

Psychological injuries caused only by general work pressure or interpersonal conflict are not compensable unless they meet the relevant event requirements ^[2].

What counts as a relevant event?

Each relevant event has its own definition in the legislation and regulations ^[2], so the everyday meaning of a word like "bullying" may not match the legal one.

How do bullying, harassment and workload claims work?

Claims based on bullying, sexual harassment, racial harassment or excessive work demands follow a separate "relevant conduct" pathway ^[2]:

• You need a completed claim form and minimum information before the claim can proceed ^[2].
• The insurer has 42 days to decide liability once it has the minimum information ^[2].
• During that period you may receive interim payments, at 75% of your pre-injury average weekly earnings, and up to $7,500 for medical or related treatment ^[2][4].
• If the insurer disputes whether the conduct meets the definitions, an internal review comes first ^[1]. The Industrial Relations Commission (IRC) has exclusive jurisdiction to decide whether conduct is "relevant conduct" ^[5].

What about reasonable management action?

Under the rules that started on 1 July 2026, no compensation is payable for a psychological injury if the significant cause of the injury was reasonable management action, or your expectation or perception of that action ^[5][13][14]. Reasonable management action means management action taken in a reasonable way that is reasonable in all the circumstances ^[13]. SIRA gives examples including performance appraisal, transfer, demotion, promotion, dismissal, misconduct investigations, disciplinary action and redundancy processes ^[3].

For injuries notified before 1 July 2026, the older rule applies. It excluded psychological injuries "wholly or predominantly caused by" reasonable action around transfer, demotion, promotion, performance appraisal, discipline, retrenchment, dismissal or employment benefits ^[7].

What can you get from an accepted NSW psychological claim?

Weekly payments, medical treatment and other entitlements can be paid on an accepted claim, but primary psychological injuries now have tighter limits than physical injuries.

Weekly payments are based on your pre-injury earnings, your current earnings and your capacity to work ^[1].

How do you make a stress claim in NSW?

1. Tell your employer as soon as possible. Include when and how it happened. Your employer must notify its insurer within 48 hours of learning about it ^[8].
2. See your GP. Your treating doctor can complete a certificate of capacity, which describes what work, if any, you can do. A certificate of capacity shouldn't cover more than 28 days ^[12].
3. Lodge a claim. A completed claim form and a certificate of capacity help the insurer decide ^[8]. A claim should be made within 6 months of the injury. This can extend to 3 years with a reasonable excuse ^[8].
4. Wait for the decision. For most claims, the insurer must contact you within 7 days of being notified and tell you whether it will start payments on a provisional basis ^[8]. Relevant conduct claims follow the 42-day pathway above ^[2].

For psychological injuries, SIRA asks diagnosing practitioners to give clear clinical information about the diagnosed condition and how it relates to the reported event or conduct, and certificates of capacity should include the diagnosis, treatment plan and capacity for work ^[2]. Our guide to a stress leave certificate explains how this differs from an ordinary medical certificate.

If you don't understand an insurer's decision, the Independent Review Office (IRO) can help injured workers ^[8].

The rules in other states are different. See workers compensation for stress for a national comparison.

When to see a GP

You don't need a workers compensation claim, or a clear cause, to see a GP about stress. If work stress is affecting your sleep, mood or ability to function, an assessment is a good place to start.

At Mental Health Clinic, your first appointment is a GP mental health assessment by video, about an hour long, available anywhere in NSW. Your GP can start treatment if it's right for you, review you regularly, refer you to a psychologist or psychiatrist if needed, and issue a medical certificate where it's clinically appropriate. Our guide on how to get stress leave explains what to expect, or you can request an appointment.

If you're in crisis or thinking about suicide, call Lifeline on 13 11 14 or 000 in an emergency.

This page is general information, not legal or medical advice. Workers compensation rules are complex and changing, so get advice about your own claim.