Finalise settlement

Acknowledge settlement

The worker should be advised of receipt of the settlement A lump sum payment that replaces an injured worker's right to ongoing weekly compensation. response.


Where the Agent is under Preliminary Notice A preliminary notice is issued by Centrelink indicating that they have an interest in the worker referred to in the notice and may wish to recover an amount equal to all or part of the amount payable. This notice places an obligation on WorkSafe/Agent to notify Centrelink prior to releasing any weekly payments to the worker. WorkSafe/Agent is to advise Centrelink within seven calendar days of accepting liability for weekly compensation or receiving the notice if liability has been already been accepted, whichever is the later. in relation to a worker's claim, clearance must be sought from Centrelink prior to the settlement amount being paid.

See: Agent obligations when a Centrelink preliminary notice is received

Pay settlement

The settlement amount must be paid within 30 days of receipt of the signed Acceptance of Settlement Offer Release letter lodged by the worker. The worker’s weekly payments of compensation ceases from the date of payment of the settlement.

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Entitlement after settlement

Once a settlement is paid, a worker is no longer entitled to:

  • any further compensation (except compensation for medical and like expenses)
  • damages for the injury
  • in respect of the injury or any recurrence of the injury (other than a recurrence arising from employment after the date of settlement).

Note: The legislation defines ‘recurrence’ as an aggravation, acceleration, exacerbation or deterioration.

The following can still be claimed after payment of settlement to a worker:

  • medical and like expenses for the injury
  • any work related injury that happens after the date of settlement
  • any entitlement to compensation under the Sentencing Act 1991.

Claims for compensation for injuries other than the settlement injury – including work related recurrences of the settlement injury – must be received before the date of application for settlement. However, they can be paid after the date of settlement, if liability is accepted.

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