Injury Management Mental Health 

Return to Work: Why waiting for “full capacity” can cost more than you think

Return to Work: Why waiting for “full capacity” can cost more than you think

By Andrew Hallaran, Senior Rehabilitation Consultant, Interact Injury Management

When an employee is injured at work, many employers instinctively believe the safest option is to wait until that worker is fully recovered before bringing them back. While well intentioned, this approach can unintentionally increase claim duration, disrupt recovery and drive higher costs for employers, insurers and workers alike.

In practice, return to work is not simply a compliance obligation. When managed well, it is one of the most effective tools employers have to support recovery, maintain workforce stability and protect long term business outcomes.

The misconception: “It’s better to wait until they’re 100%”

A common question employers ask is what happens when an injured worker has no capacity to work and whether their role can be filled in the meantime. In most cases, employers cannot replace or terminate an injured worker solely due to a workplace injury, particularly within the first six months, when employment protections apply. During this period, employers are required to ensure the worker’s pre injury role remains available to them upon return.

This can create operational pressure, especially for smaller businesses. However, waiting passively for a worker to recover fully often creates greater challenges down the line. Evidence from claims experience consistently shows that the longer a worker remains off work, the less likely they are to successfully return to their pre injury role.

Suitable duties: an active recovery strategy

Providing suitable duties is one of the most effective ways to support recovery, yet it is often misunderstood. Suitable duties are not about “light work” or busy tasks; they are a structured approach to keeping a worker engaged, active and connected while they recover.

For injured workers, remaining at work, even in a modified capacity, can support physical recovery, reduce the risk of psychological distress and maintain routine and purpose. It also helps preserve workplace relationships, which play a significant role in long term recovery outcomes.

From a financial perspective, workers who are able to work at least 15 hours per week may also receive higher wage reimbursement, helping to reduce financial stress during recovery.

The business case for early return to work

The benefits of suitable duties extend well beyond the individual worker.
For employers, facilitating early and safe return to work can:

  • Reduce the impact of claims on insurance premiums
  • Shorten overall recovery and claim duration
  • Lower the risk of permanent incapacity
  • Minimise the need to recruit and train replacement staff

Each additional hour an injured worker is able to safely perform meaningful work contributes to better outcomes across the life of the claim.

From an insurer’s perspective, early engagement in suitable duties helps stabilise claims, reduce escalation risk and support more durable recovery pathways.

When suitable duties aren’t immediately available

Not every workplace can provide suitable duties straight away, and that’s okay. In some cases, an injured worker may need to remain off work until they regain enough functional capacity to safely perform modified or pre injury duties, sometimes on reduced hours.

The key difference between strong and poor outcomes is not the presence of suitable duties, but how actively the return to work pathway is managed during this period. Clear communication, forward planning and early collaboration with insurers and rehabilitation providers significantly reduce the risk of prolonged absence.

For small businesses in particular, government support programs may be available to help offset the cost of alternative arrangements while a worker recovers at work, subject to eligibility criteria.

Addressing motivation and perceived barriers

Another common challenge arises when employers feel an injured worker has low motivation or limited desire to return to work. In many cases, this is less about motivation and more about uncertainty, fear or lack of clarity around expectations.
Employers can play a constructive role by:

  • Offering meaningful and appropriate suitable duties
  • Maintaining open, respectful communication
  • Working closely with insurers and rehabilitation consultants
  • Clearly articulating any concerns or barriers affecting progress

Where a worker has capacity to work and suitable duties are available, but progress stalls, it may be appropriate to escalate the claim with the insurer to ensure appropriate support and intervention are in place.

Early, coordinated action helps prevent claims from becoming adversarial and supports better outcomes for all parties.

Prevention and return to work are part of the same system

Strong return to work outcomes don’t begin at injury, they start well before it. Employers that consistently achieve positive outcomes tend to have well embedded safety systems, including:

  • Regular risk assessments
  • Clear safety protocols and procedures
  • Appropriate use of personal protective equipment
  • Ergonomic workstations
  • Ongoing safety training and equipment maintenance
  • Open channels for reporting hazards and near misses

Learning from previous incidents and staying aligned with industry best practice creates safer workplaces and smoother recovery pathways when injuries do occur.

A shared responsibility

Return to work works best when employers, insurers and rehabilitation providers operate as a coordinated team. Rather than waiting for “full capacity,” focusing on what a worker can safely do, and supporting them to do it, delivers better outcomes across health, productivity and cost.

In my experience, the strongest recoveries happen when return to work is treated not as an administrative task, but as a strategic part of workforce management — one that benefits everyone involved.


About the Author

Andrew Hallaran is a rehabilitation consultant with Interact, working closely with employers and insurers to support safe, sustainable return to work outcomes throughout New South Wales.

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