What Is Considered a Psychological Injury in Victoria?
In Victoria, a psychological injury refers to a mental health condition or psychological disorder that affects a worker’s behaviour, cognition, or emotional functioning and arises out of or in the course of employment.
WorkCover Legal Definition
For the purposes of WorkCover compensation, psychological injury falls under “mental injury” in the legislation. To be considered compensable, it must:
cause significant behavioural, cognitive or psychological dysfunction, and
be diagnosed by a medical practitioner according to the latest DSM criteria.
This means that a mere experience of stress, sadness, or pressure is not enough, the condition must significantly impair your normal psychological functioning.
Examples of Compensable Psychological Injuries
Common examples of psychological injuries that may meet the legal test include:
Post-Traumatic Stress Disorder (PTSD) from exposure to traumatic incidents at work
Major depression or anxiety disorders triggered by workplace violence, harassment, or severe conflict
Adjustment disorders following significant workplace changes or events
Symptoms associated with these injuries may include:
Persistent sadness or hopelessness
Severe anxiety or panic
Sleep disruption
Reduced concentration or emotional regulation
These symptoms must significantly interfere with normal life or work functioning.
Work-Related Causation
For a psychological injury to be compensable, it must predominantly arise out of or in the course of employment. That means work-related causes must be the main contributor to the injury, not personal or outside-of-work factors.
Excluded Situations
The law excludes compensation for mental injuries that are predominantly caused by stress or burnout due to events that are considered usual or typical in the course of normal work duties — unless the work involves traumatic exposure.
Why This Matters
Understanding what counts as a psychological injury helps workers know:
whether they may be eligible for a claim
what medical evidence is needed
how their work circumstances are assessed
Key Resources
🔗 Definition of mental injury and eligibility requirements: https://www.worksafe.vic.gov.au/practice-directive-mental-injury-eligibility
🔗 Safe Work Australia on psychological injury compensation: https://www.safeworkaustralia.gov.au/workers-compensation/workers-compensation-psychological-injuries
FAQ – What Counts as Psychological Injury
Q: Is normal stress at work compensable?
A: Everyday stress and burnout are generally excluded unless linked to trauma or extraordinary events.
Q: Do I need a diagnosis?
A: Yes — a medical practitioner must diagnose a mental injury under DSM criteria.
Q: Can bullying cause psychological injury?
A: Yes — unreasonable bullying and harassment may lead to compensable injury if criteria are met.
Disclaimer
The information on this website is for general informational purposes only and should not be relied upon as professional advice. It is not a substitute for personalised medical, psychological, legal, or workplace advice. Laws, policies, and eligibility criteria may change and vary between individuals. We encourage readers to seek official guidance from relevant authorities (such as WorkSafe Victoria or Safe Work Australia) and support from qualified professionals before making decisions based on this information.
