A common law claim for damages was based on an employer's duty to take reasonable care for the safety of employees in all the circumstances of their employment. In the past an employee injured at work was sometimes able to recover damages from her or his employer. The damages were usually larger than the amount paid as Workers Compensation, but they could only be recovered when there was proof of negligence, or fault on the part of the employer. From 30 September 1987 damages were limited by an indexed ceiling ($129 220 in 1992) and any lump sums paid by WorkCover were first deducted. From 3 December 1992 injured workers had until 3 June 1993 or twelve months from the date injured, whichever was the longest period, to pursue a common law right for an injury caused by the employer's negligence. Common law claims for damages are now effectively abolished, as is the case now for Commonwealth employees.

If the worker's injury is caused by the negligence of someone other than the employer such as a contractor, treatment provider or employees of a different emloyer, there is no limit to the damages that may be claimed unless it is caused by motor vehicle accident after 8 February 1987, see motor vehicle accidents. The situation in this area is likely to be very complex and detailed legal advice should be sought.