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Every injured worker must obtain a certificate of capacity in order to claim benefits under the New South Wales workers compensation scheme. This article focuses on the role of the certificate of capacity when you are returning to work, or considering a return to work, following a workplace injury. A certificate of capacity is critical for you, your employer and the workers compensation insurer to enable you to manage your injury and safely return to work.

Among other objectives, your certificate of capacity plays an important role in determining your entitlement to weekly payments for periods of incapacity arising from your work injury. This includes partial capacity and restrictions, to facilitate a gradual return to work. In order to continue receiving these benefits, or to claim back payment of these benefits (where your claim is disputed), you must continue obtaining certificates of capacity and providing them to the insurer. This is an obligation of a worker under the Workers Compensation Act 1987 (NSW). It is not sufficient to provide a non-SIRA certificate of capacity.

Your certificate of capacity plays a critical role in your entitlement to weekly payments. Generally, you will only be entitled to the difference between your pre-injury average weekly earnings and your current ability to earn in suitable employment. This assessment is usually based on the hours you are certified as being able to work, the duties you are certified as being able to perform, and any restrictions recorded by your doctor in your certificate of capacity.

This means the insurer may consider your capacity for suitable employment more broadly, and not only whether your pre-injury employer has actually offered you suitable duties. In some circumstances, the insurer may also consider whether there are suitable duties available in the open labour market with another employer. If your certificate says you can work full-time hours, in alternative duties, the insurer may be entitled to reduce or cease your weekly payments.

It is for this reason that your certificate must reflect your actual restrictions in employment, both in terms of your capability, limitations and hours. Before your doctor certifies you as having capacity to return to work, you should make sure your doctor understands the proposed duties, hours, physical demands of the role, and any symptoms or flare-ups you experience when performing work-related tasks.

Before returning to work, you should check that your certificate of capacity accurately records:

• the hours you can safely work;
• the duties you can and cannot perform;
• any restrictions (either physical or psychological) lifting, bending, standing, sitting, driving, travelling to and from work, concentrating, problem solving etc;
• any treatment or rehabilitation needs; and
• whether you require a gradual or graded return to work.

If you are receiving weekly payments from the workers compensation insurer for your time off work, you are obliged to notify the insurer of any new employment or return to work to ensure any necessary adjustments are made to your workers compensation benefits. If you require specific advice about your certificate of capacity, you should contact Carroll & O’Dea Lawyers for further advice.

Disclosure and important note: This article is based on our own legal research and thinking. Some of its content has been drafted with the assistance of artificial intelligence. The authors have checked and approved this article, including the AI generated content, for publication.

This article was published on 18 August 2026 by Carroll & O’Dea Lawyers and is based on the relevant state of the law (legislation, regulations and case law) at that date for the jurisdiction in which it is published. Please note this article does not constitute legal advice. If you ever need legal advice or want to discuss a legal problem, please contact us to see if we can help. You can reach us on 1800 059 278 or via the Contact us page on our website. (www.codea.com.au). If you or a loved one has been injured, use our Personal injury Claim Check now.