Posted on March 25, 2026
Summary: In South Australia, your employer cannot terminate your employment simply because you lodged a workers’ compensation claim. The Return to Work Act 2014 provides specific protections for injured workers, including obligations on employers to provide suitable work and follow a formal process before any termination can proceed. This article explains those protections and when to speak with a workcover lawyer in Adelaide.
Fear of losing a job is one of the most common reasons people delay lodging a workers’ compensation claim. Some are told directly by a supervisor that it will create problems. Others sense it through changes to shifts, responsibilities, or the way they’re treated after reporting a workplace injury.
The legal position in South Australia is clear. Workers are entitled to make a claim, and employers who retaliate for doing so are acting unlawfully. Understanding exactly how those protections work makes a significant difference in how you approach the process. If you’re unsure where you stand, our guide on whether you need a WorkCover lawyer is a good starting point.
Your Legal Protections Under the Return to Work Act
The Return to Work Act 2014 governs workers’ compensation in South Australia and is administered by ReturnToWorkSA. Two sections are particularly relevant here.
Section 18 requires employers to provide suitable employment to an injured worker who has some capacity to return. This may include modified duties, adjusted hours, or an alternative role. Employers who fail to meet this obligation may face financial penalties under the Remissions and Supplementary Payments Scheme.
Section 20 requires employers to give at least 28 days’ written notice to both the worker and the claims agent before terminating an injured worker. This allows ReturnToWorkSA to review the situation and check that the employer has met their obligations.
At the federal level, Section 351 of the Fair Work Act 2009 also prohibits adverse action against an employee because of a physical or mental disability, which typically includes a workplace injury.
When Can an Employer Lawfully Terminate an Injured Worker?
Termination may be lawful if an employer has exhausted all reasonable options for suitable work and the worker cannot perform the inherent requirements of any available role. They must still follow the 28-day notice process and demonstrate genuine compliance with their Section 18 obligations.
Termination for reasons unrelated to the injury, such as genuine redundancy or serious misconduct, may also be lawful. Amendments to the Act effective December 2024 have confirmed that the suitable employment obligation ceases where a worker has been properly terminated for serious and wilful misconduct.
The critical distinction is the reason behind the termination. If it is connected to the claim or the injury itself, it is likely unlawful. A workcover lawyer in Adelaide can assess your specific circumstances and advise you on where your case stands.
What If Your Employer Pressures You Not to Claim?
This is more common than many people realise. Any attempt to discourage, penalise, or punish a worker for exercising their right to make a claim is a breach of the Act. You can report such conduct directly to ReturnToWorkSA’s regulatory team. For workers whose employer may not hold the required insurance, we’ve addressed that separately in our article on claiming workers’ comp when your employer isn’t insured.
Does Termination End Your Workers’ Comp Entitlements?
No. This is widely misunderstood. If your employment ends while you have an active claim, your entitlements to weekly payments, medical expenses, and rehabilitation services continue for as long as you remain eligible. Your entitlement to income support depends on your assessed capacity for work, not your employment status.
For non-seriously injured workers, income support generally continues for up to two years, with an additional year of medical expenses. Workers assessed above the Whole Person Impairment threshold may qualify as seriously injured workers with access to extended entitlements. If your insurer attempts to reduce your payments after termination, you can challenge that through the South Australian Employment Tribunal. For more detail, see our article on what happens after two years of payments.
How PMN Lawyers Can Help
At PMN Lawyers, our team has spent over 40 years representing injured South Australians across workers’ compensation, workplace accidents, motor vehicle claims, medical negligence, and public liability. We understand the tactics some employers and insurers use, and we know how to respond when the process is not being followed.
We offer a free initial consultation and No Win, No Fee arrangements. If you’ve been injured at work and you’re concerned about your job, or if you’ve already been terminated while on a claim, contact PMN Lawyers on (08) 8212 3566 for a free assessment of your situation.
Frequently Asked Questions
Not simply because you have an active claim. They must give 28 days’ written notice, demonstrate compliance with their return to work obligations, and have a legitimate reason unconnected to your injury. If any part of that process was skipped, the termination may be challengeable.
Yes. Your entitlements are based on your capacity for work, not your employment status. As long as your doctor certifies that you remain incapacitated, those payments should continue.