When Sleep Does Not Count: Clarifying Impairment Assessment For Sleep Disorders

Poor sleep is a common complaint following a workplace injury, particularly where a worker is experiencing ongoing pain, medication side effects or other consequential symptoms. But as this recent decision shows, sleep disturbance does not automatically amount to a separate assessable impairment under the NSW Workers Compensation Scheme.

In Lachlan Shire Council v Stanley [2025] NSWPICMP 765, the Medical Appeal Panel confirmed that a sleep and arousal disorder will only be assessable in limited circumstances - namely, where there is a primary sleep disorder following neurological injury. Sleep problems that are secondary to pain, reflux or another compensable condition should generally be considered as part of the underlying injury, rather than assessed separately.