TREAT home > The WorkCover system > Redemption of liabilities

Redemption of liabilities

A redemption is a lump-sum payment to effectively ‘settle’ and cease an injured worker’s entitlement to ongoing compensation or rehabilitation support.

Use of redemptions will only be allowed where it will not undermine the Scheme’s primary focus on return to work, in circumstances where:

  • the worker has returned to work but has an ongoing entitlement to a small top-up of $30 per week or less and the redemption will remove the administrative cost of the claim remaining open for WorkCover and the worker
  • the worker is 55 years of age or older and has no current work capacity
  • exceptional circumstances apply where there is an overwhelming social interest in finalising the matter (as determined by the Workers Compensation Tribunal).


Redemptions are voluntary and can only take place through mutual agreement between the parties.

There are certain legislative requirements regarding the injured worker obtaining professional advice before a redemption can proceed. One of these requirements is that the injured worker must obtain from a medical practitioner certification that "the extent of the workers incapacity resulting from the compensable disability can be determined with a reasonable degree of confidence." Section 42(2)(d) of the Workers Rehabilitation & Compensation Act 1986.

Therefore, from time to time medical practitioners may be asked for this certification. They should use their clinical judgement to make this assessment. There is no set format for this certification and if medical practitioners are unsure of the requirement please contact the case manager or the injured worker representative.

From 1 July 2009 as a result of legislative amendments some additional criteria applies to restrict when a redemption can be considered. To view the full criteria, refer to section 42 of the Act.