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WorkCover stress leave in NSW: what it actually means, and how to access it
In short: "Stress leave" isn't a separate legal entitlement in Australia - it's a common way people describe two different things. If your condition isn't caused by work, it's typically covered by paid personal/sick leave (10 days a year under the National Employment Standards). If it is caused, or significantly contributed to, by your work, it's a NSW workers compensation claim: weekly payments (around 95% of pre-injury earnings for the first 13 weeks, then around 80%) plus fully funded psychology treatment with no gap fee. The two pathways have different rules, different payment rates, and different medical certificate requirements.
This guide provides general information only and is not legal or clinical advice. Individual circumstances vary. For advice on your specific situation, contact your GP, a workers compensation lawyer, the Fair Work Ombudsman (13 13 94), or SIRA (1300 656 919). For urgent mental health support, contact Lifeline on 13 11 14, Beyond Blue on 1300 22 4636, or 13YARN on 13 92 76.
Searching "stress leave" is usually the first step someone takes when work has become genuinely unmanageable and they need time off. The problem is that "stress leave" isn't actually a defined legal term in Australia, which makes it hard to know what you're entitled to, who pays you, and whether you need to do anything formal. This guide untangles the two real pathways that "stress leave" usually refers to, so you can work out which applies to you.
Is "stress leave" a real entitlement?
No - not as its own category. There is no law that grants a worker a fixed number of "stress leave" days. What most people mean by the phrase is one of two genuinely different things:
- Paid personal/sick leave, taken for a mental-health-related reason. Under the National Employment Standards, full-time employees accrue 10 days of paid personal/carer's leave per year (pro-rata for part-time employees, and this applies regardless of whether work caused the condition). A medical certificate needs to confirm you're unfit for work - it does not need to say why beyond "medical reasons." This is administered by your employer, not an insurer.
- A NSW workers compensation claim, if your psychological condition was caused, aggravated, or materially contributed to by your work. This is a completely separate scheme (icare/SIRA), assessed by an insurer rather than your employer, with its own payment rates and its own medical certificate (a Workers Compensation Certificate of Capacity, not just a standard medical certificate).
Source: Fair Work Ombudsman - paid sick and carer's leave.
Stress leave vs a workers compensation claim: how they differ
Which pathway applies changes what you're paid, how long it can last, and what your doctor needs to certify. Here's how the two compare:
| Situation | Personal/sick leave | Workers compensation (icare/SIRA) |
|---|---|---|
| Who assesses it | Your employer, based on your medical certificate | Your insurer, based on liability for the injury |
| Cause required | None - any personal illness or injury | Work must be the main contributing factor |
| Pay rate | Your normal wage, from your leave balance | ~95% of pre-injury earnings (weeks 1–13), then ~80% |
| Limit | Capped at accrued balance (10 days/year, full-time) | No fixed day cap; subject to ongoing capacity certification |
| Certificate needed | Standard medical certificate | Workers Compensation Certificate of Capacity, with a specific diagnosis |
| Psychology treatment funding | Not included - Medicare rebate applies if eligible (gap fee typically applies) | Fully funded at SIRA gazetted rate, no gap fee for approved sessions |
If your stress is caused by work: how the workers comp pathway works
If you believe your work caused or significantly contributed to a diagnosed psychological condition, the workers compensation pathway is usually the better option - it pays a higher proportion of your wage than most people have in accrued leave, and it funds ongoing psychological treatment at no cost to you. In brief:
- Notify your employer in writing
As soon as you're aware the condition may be work-related, tell your employer. They must notify their insurer.
- See your GP for a Workers Compensation Certificate of Capacity
This is different from a standard sick certificate - it documents a specific diagnosis, your capacity for work, and treatment recommendations.
- Start psychological treatment
A SIRA-approved psychologist can usually begin sessions while formal approval is pending, then submits an Allied Health Treatment Request (AHTR) to the insurer.
- The insurer decides liability
Your insurer can accept, partially accept, or dispute the claim - most disputes in this area turn on causation or the section 11A "reasonable management action" exclusion.
For the full step-by-step process, see our complete guide to psychological injury claims under NSW workers compensation. For the legal detail on what counts as a compensable injury versus ordinary work stress, see our guide to work-related stress claims and the section 11A exclusion.
Why the wording on your medical certificate matters
In practice, insurers assess workers compensation claims against a specific, diagnosable psychological condition - not a general label. A certificate that lists only "stress" or "burnout," without a clinical diagnosis such as an adjustment disorder, an anxiety disorder, or a depressive episode, is less likely to support a successful claim. If you believe your work has caused a genuine psychological injury, ask your GP or treating psychologist for a specific diagnosis on your certificate of capacity, not just a description of symptoms.
If the stress is from bullying or harassment
Workplace bullying is one of the most common causes of a work-related psychological injury claim in NSW, and it has its own considerations under section 11A. See our dedicated guide: workplace bullying and psychological injury claims in NSW.
Accessing treatment via telehealth
Whichever pathway applies, psychological treatment is available via telehealth. Under workers compensation, telehealth sessions are billed at the same SIRA gazetted rate as in-person sessions (PSY301/PSY302), with no difference in cost to you. See our guide to finding a SIRA-approved psychologist for telehealth.
Frequently asked questions
Is stress leave a legal entitlement in Australia?
Not as a separate category. There is no standalone "stress leave" entitlement. What people usually mean is either paid personal/sick leave under the National Employment Standards (10 days per year for full-time employees, pro-rata for part-time), or a workers compensation claim if the condition was caused by work. These are different schemes with different payment rates and rules.
How long can I take stress leave in NSW?
Paid personal/sick leave is capped at your accrued balance. A NSW workers compensation claim for a work-caused psychological injury has no fixed day limit - payments and treatment continue while your certificate of capacity supports it, subject to a 130-week cap on weekly payments for primary psychological injuries under the 2026 reforms (treatment funding is separate and not capped this way).
Do I need a workers compensation claim to take stress leave?
No - if your GP certifies you unfit for work for a personal (non-work-caused) reason, you can use accrued paid personal/sick leave without lodging any claim. A workers compensation claim is only relevant if you believe your work caused or materially contributed to your condition and you want weekly income replacement and fully funded psychological treatment.
Will I get paid while on stress leave?
On personal/sick leave, you're paid your normal wage from your leave balance. On an accepted workers compensation claim, weekly payments are approximately 95% of pre-injury average weekly earnings for the first 13 weeks, then approximately 80% after that. Without accrued leave or an accepted claim, time off is unpaid.
Can my employer refuse my stress leave?
An employer generally cannot refuse legitimate use of accrued paid personal/sick leave supported by a medical certificate. A workers compensation claim is decided by the insurer, not your employer directly - it can be accepted, partially accepted, or disputed, most commonly on causation or the section 11A "reasonable management action" exclusion.
Related guides
- Workers compensation for mental health in NSW: can you claim, and how
- Work-related stress claims NSW: the section 11A exclusion in depth
- Workplace bullying and psychological injury claims in NSW
- Psychological injury compensation NSW: weekly payments explained
- SIRA-approved psychologists: what approval means and how to verify
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