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ARTICLE · 28 JUNE 2022

Signing a deed of release may affect your ongoing workers compensation benefits

How can a deed of release affect the ongoing compensation benefits of an injured worker after they are terminated from employment.

AustraliaEmployment and HR

On occasion, a worker may be asked to sign a deed of release when an employer moves to terminate the worker. A deed of release is a legally binding document between an employer and employee, setting out the terms of settlement (for example, payments and what each party can and cannot do), following an employee's termination. In this article, we explore how a deed of release can affect an injured worker's ongoing worker's compensation benefits following termination of employment.

Deed of release clauses that impact worker's compensation entitlements

While a deed of release may contain "standard" clauses, it is important to be aware of the effect this may have on any future claims against the employer. This can include a worker's compensation claim if there has been an injury surrounding the issues covered in the deed of release. The wording of the deed of release could also prevent future claims against the employer.

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