Under New South Wales law, employers must keep workers' compensation records for a minimum of 7 years from the date of the incident, or 10 years if the claim is closed after an appeal. These records include medical reports, payroll data, incident logs, and any correspondence related to the claim.
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Legal Basis for Record Keeping
The Workers Compensation Act 1987 and the Workplace Injury Management and Workers' Compensation Act 1998 set the statutory requirements. Section 32 of the Act specifies the 7‑year retention for incident reports, while the 10‑year rule applies to records after a claim is formally closed.
Types of Records to Preserve
Employers should maintain:
- Incident reports and investigation notes
- Medical treatment records and certificates
- Payroll and wage statements related to the injury
- Correspondence with insurers and workers' compensation boards
- Evidence of any returned-to-work arrangements
Why Longer Retention May Be Needed
Claims can be reopened or appealed up to 3 years after closure. To defend against potential legal challenges, many organisations extend retention to 10 years for all related documents. This also satisfies the Australian Workplace Health and Safety Act, which requires evidence of safety measures for a comparable period.
Practical Steps for Compliance
1. Implement a Record Management Policy that outlines retention schedules, storage methods, and secure disposal procedures.
2. Digitise Documents where possible to reduce physical storage costs while ensuring electronic records meet audit trail standards.
3. Schedule Regular Audits to verify that records are intact, up‑to‑date, and that obsolete files are disposed of correctly.
Consequences of Non‑Compliance
Failure to retain records can result in fines under the Workplace Health and Safety Act and may weaken an employer's defense in disputes. In severe cases, non‑compliance can lead to legal action from the injured worker or regulatory bodies.
Conclusion
To avoid penalties and support transparent workplace safety practices, NSW employers should maintain workers' compensation records for at least 7 years, extending to 10 years when claims are closed or appealed. A clear, documented retention policy ensures compliance and protects both the organisation and its employees.