Is it possible to take annual leave and workers compensation weekly payments at the same time in the private sector?

This is a complex issue that will depend on your specific individual circumstances. In New South Wales, Section 49 of the Workers Compensation Act 1987 does broadly allow both annual leave and workers’ compensation to be taken at the same time.

However, we are aware there have been instances where some private hospitals are self-insured under the Safety, Rehabilitation and Compensation Act 1988 and sometimes they have declined requests for injured workers to receive both workers compensation payments and annual leave at the same time due to the nature of those provisions.

It is also important to take into consideration the implications of cashing out of any leave balances while on workers compensation generally as the insurer may consider leave payments/payouts as earnings and ‘top up’ payments may be affected (or reduced) for the duration of any paid leave.

Cashing out or accessing both leave and workers compensation payments may have effects on salary sacrificing and taxation. We would suggest seeking financial advice and discussing with your insurer your individual circumstances prior to doing this.