If you’re receiving WorkCover and feeling stuck – whether from a long recovery, a toxic work environment, or uncertainty about your future – you may be wondering if it’s possible to resign from your job. The idea of walking away can feel like taking a risk you’re not ready for, especially if you rely on weekly payments or medical support.
This is a common situation, and it doesn’t have to be overwhelming. Carbone Lawyers regularly help clients across Victoria navigate this decision. The truth is, yes, you can legally resign while receiving WorkCover. But before you act, it’s important to understand how resignation could affect your compensation, entitlements, and legal options.
We aim to explain what resigning means for your claim, what benefits continue, and how to protect your rights with expert legal advice.
You Can Resign While Receiving WorkCover
There is no law in Victoria that stops you from resigning while on WorkCover. Your employment status does not determine whether you remain eligible for WorkCover compensation. What matters is the nature of your injury and your capacity for work.
Many injured workers are led to believe that resigning will mean the immediate loss of all benefits. That isn’t accurate. You won’t automatically lose access to WorkCover simply because you choose to leave your job. That said, the way you resign and your current work capacity can affect which payments you continue to receive. This is why it’s essential to get tailored advice before you make your decision.
What Happens to Your Compensation After You Resign?
Resigning while on WorkCover doesn’t end your claim, but it can change how your entitlements are assessed. Here’s what typically happens:
Weekly Payments
If you’re certified as unfit for any work, weekly compensation payments may continue after you resign. If you are partially fit, you’ll need to show that you’re actively seeking suitable employment to keep receiving payments. The standard payments are:
- 95% of your pre-injury average weekly earnings for the first 13 weeks
- 80% from week 14 to 130
- Beyond 130 weeks in limited circumstances
Medical and Rehabilitation Expenses
These generally remain covered after resignation, so long as they relate to your accepted injury. This includes treatment, therapy, medications, surgery, transport, and rehabilitation support.
Lump Sum Benefits
You may still be eligible for a lump sum impairment benefit even if you resign, provided you meet the required impairment threshold. Resignation does not disqualify you from this right.
Employer-Provided Benefits
Benefits such as income protection or top-up payments funded by your employer may end after resignation. These depend on your employment contract or written agreement and should be reviewed individually.
For many workers, this is the moment when legal advice becomes critical. Resignation changes the dynamics of your claim, and with the right guidance you can avoid losing entitlements.
Resigning Because of Bullying, Stress or Unsafe Work Conditions
Some workers don’t want to leave their jobs, but they feel they have no choice. If your workplace has become harmful to your mental health due to bullying, harassment, isolation or excessive pressure, resigning may feel like the only way out.
If you resign because of an unsafe or hostile work environment, you may be experiencing what’s known as constructive dismissal, where the conduct of your employer encourages your resignation. You could also be eligible to lodge a psychological injury claim under WorkCover, even if your mental health condition worsens after you resign.
These claims are complex but important. Carbone Lawyers are experienced in handling psychological injury matters and understand the evidence needed to support your claim. If you’re struggling at work, our team will help you explore your legal options and protect your mental wellbeing.
You Can Still Claim Common Law Damages and TPD
Leaving your job does not prevent you from seeking further compensation for your injuries. If your injury is classified as “serious” and your employer was wholly or partly at fault, you may be entitled to common law damages. These damages can include:
- Pain and suffering
- Loss of future income or earning capacity
- Superannuation contributions lost due to your injury
In addition, if you are unable to return to any form of suitable employment, you may be able to lodge a Total and Permanent Disability (TPD) claim through your superannuation. These claims are independent of your employer and are assessed under your super fund’s policy terms.
Each of these claims processes has strict eligibility requirements and deadlines, most notably, a six-year limit for common law claims in Victoria. Delays can reduce your options, so it’s best to seek advice early if you’re considering any form of legal action post-resignation.
Why You Should Speak to a Lawyer Before You Resign
Resignation is a big decision. Without the right legal advice, it’s easy to misunderstand how it could affect your WorkCover entitlements, your future income, or your legal rights.
Carbone Lawyers help clients:
- Time their resignation to preserve access to benefits
- Maintain compliance with job-seeking obligations
- Explore potential lump sum, superannuation or common law claims
- Take over claims where current legal advice has fallen short
Whatever your reasons, we can guide you through your options, protect your claim, and help you move forward with confidence.
Ready to Resign? Talk to Carbone Lawyers First
Choosing to resign while on WorkCover is your right. But like all major decisions, it should be made with a full understanding of the risks and opportunities. Contact Carbone Lawyers today to ensure you don’t miss anything you’re entitled to.
