Can you claim workers’ compensation for a psychological injury if you already had mental health issues?
Yes. Having a pre-existing psychological condition such as anxiety, depression or PTSD does not automatically prevent you from making a workers compensation claim. If workplace events caused your condition to worsen, you may still be entitled to compensation.
This case study highlights a successful outcome achieved by Turner Freeman Lawyers for a worker whose pre-existing psychological condition was aggravated by workplace bullying and harassment. Despite multiple appeals by the employer, the worker’s claim was ultimately upheld by the New South Wales Court of Appeal.
Psychological Injury Compensation Case Study
Our client had a long history of psychological conditions that had been triggered by various events throughout her life. Through her resilience, she was able to return to work for an uninterrupted period of 9 months before she was subjected to bullying and harassment in the workplace. This significantly worsened her condition, which then rendered her totally unfit for work.
As a result, she lodged a workers compensation claim on the basis that her employment had aggravated her pre-existing psychological condition.
The employer disputed the claim and the matter proceeded through several levels of appeal.
Key outcomes of the case
12 Feb 2025: The Personal Injury Commission (PIC) found in favour of our client. After which, the employer sought an appeal to the Acting Deputy President of the PIC.
7 Oct 2025: The PIC dismissed the employers appeal and upheld our client’s claim.
5 May 2026: The employer sought a further appeal at the Supreme Court of New South Wales. The PIC dismissed the appeal, and our client’s entitlement to compensation was upheld again.
Why was the claim successful?
The employer did not dispute that our client had pre-existing psychological conditions, nor did it dispute that employment had contributed to the aggravation of those conditions.
The key issue was whether employment was the main contributing factor to the aggravation, as required by section 4(b)(ii) of the Workers Compensation Act 1987 (NSW).
The employer argued that the Court had failed to properly consider our client’s previous symptoms and treatment history and had incorrectly applied the law.
However, the PIC found that there was no evidence of any competing factor that could explain the deterioration in our client’s condition. Importantly, the employer itself was unable to identify another cause for the aggravation.
In those circumstances, the PIC concluded that employment was the main contributing factor and dismissed the appeal with costs.
What does this mean for workers who have aggravated a pre-existing injury at work?
This case demonstrates that you may still have a valid workers compensation claim even if:
- You had anxiety, depression or another psychological condition before the workplace events occurred;
- Your injury was an aggravation of an existing condition rather than a completely new injury;
- Your employer argues that your mental health issues existed before your employment.
A pre-existing condition does not automatically prevent compensation.
If workplace bullying, harassment or other employment-related events caused your condition to worsen, you may still be entitled to workers compensation benefits.
Case Reference
State of New South Wales (Sydney Local Health District) v BNV [2026] NSWCA 77
