A commutation is an agreement made between you (the worker), your employer and the insurer to pay your entitlements as a lump sum.

If you accept a commutation, you will no longer be entitled to future weekly payments, or to claim medical, hospital, rehabilitation expenses for that injury.

Preconditions for a commutation

A commutation is only available when these preconditions have been met:

  • you have an injury that has resulted in a permanent impairment of at least a 15 per cent
  • compensation for permanent impairment has been paid
  • it has been more than two years since you first received weekly payments for the injury
  • all opportunities for injury management and return to work have been fully exhausted
  • you have received weekly payments (regularly and periodically) throughout the previous six months
  • you are entitled to ongoing weekly payments
  • weekly payments have not been stopped or reduced as a result of you not complying with your return to work obligations

If you (the worker) meet these preconditions, these things must happen before receiving a commutation:

Further information

Further information is available in the guidelines for claiming workers compensation.


Sometimes there can be disputes about compensation.  If there’s a dispute, there’s help available. Our workers compensation disputes section has more information on how we can help.