Unmasking the Façade: Injured Lawyer Exposes Workers' Compensation Scheme

In a ground-breaking exposé, Shattered launches a searing series that rips the veil off the workers' compensation system, revealing a landscape of broken promises and shattered lives.

At the forefront stands Sharni Sinclair, a lawyer turned whistleblower, whose own battle with the system has ignited a firestorm of controversy. Her story today written by Amber Schultz in the SMH begins the work of Shattered demanding an immediate end to the harm of sick, injured workers and the establishment of a compensation fund for the harm caused to people within the claim process. The very system that is meant to help heal.

This series isn't just about telling stories—it's about holding power to account. We're giving voice to the silenced, shining a spotlight on the human casualties of a system designed to protect them. As we unveil these harrowing accounts, we're also turning our investigative lens on the carefully crafted responses from those in charge.

Case in point: When confronted with Sinclair's damning testimony, the authorities retreated behind a wall of corporate-speak:

Empty words or genuine remorse? You decide. In this series, we'll dissect these responses, exposing the gulf between public relations messaging, spin, and painful realities. It's time to cut through the jargon and demand real answers.

Brace yourself for the truth. This is Shattered's unyielding quest for justice in a system that's left too many broken.

Sharni Sinclair's Story - In her Own Words

By Sharni Sinclair

Previously I was a highly regarded, passionate and dedicated lawyer employed by Legal Aid NSW, practising primarily in criminal law, mental health advocacy with a special interest in the civil law area of Work and Development Orders. Ironically I have now become the client or patient I once advocated so strongly and passionately for.

Unfortunately throughout the time I was working for Legal Aid NSW an accumulation of incidents occurred including but not limited to the rejection of my maternity leave application as a permanent Government employee, the expectation to answer work calls during being hospitalised for a septic uterus after a prolonged and dangerous miscarriage, verbal abuse by my Solicitor In Charge at the Drug Court and other psychological forms of bullying both within the Newcastle and Gosford offices, exposure to colleagues instances of bullying and harassment within the workplace, extreme and excessive workload, repeated exposure to horrific and traumatic material and ongoing mismanagement - eventually leading to psychiatric diagnoses’ of Post Traumatic Stress Disorder (dissociative type), Major Depressive Disorder, and persistent anxious distress.

A workers compensation claim for psychological injury was duly made on 4 April 2023. From the date of lodgement there has been one systemic failure after another. The first was that the claim languished far beyond legislative timeframes, provisional acceptance came over 4 months after the claim was lodged when legislation requires the insurer has only 21 days to make a determination. A decision of full liability formal acceptance by the insurer, QBE, for psychological injury to the worker in the course of employment with Legal Aid NSW was determined on 21 August 2023.

Prior to full acceptance, I was on Centrelink payments to support myself and my primary school aged daughter. Due to the excessively long wait for a decision, when the first of weekly payments were made, backpay was also applied. This raised a Centrelink debt in the vicinity of $9,000. Mishandling of the claim by the insurer QBE has resulted in several formal complaints to the Independent Review Office (IRO). The IRO Director in late 2023 reviewed the handling of the claim by QBE as serious enough to warrant an escalation to the State Insurance Regulatory Association (SIRA). I pressed multiple times for a response that never came. In relation to the Centrelink debt, QBE admitted fault to the IRO and accepted it was “an administrative oversight” on their part but Centrelink refused to waive the debt. I reached out to both my State and Federal MP’s at that time about the issues but the debt remained and the State MP’s office told me these were “legal issues” and they could not assist.

Throughout the course of the claim, payments were missed, it was a rare occasion where fortnightly payments were ever paid on time and has often required me or my legal representatives chasing QBE up for unpaid wages. It has been an uphill battle to get medical treatment approved in a timely manner, medication or travel expenses have also been stopped and started to the point where I have given up attempting to establish a chemist account for the list of prescription drugs I am on, case managers have treated me for lack of a better analogy like a cockroach that needs to be squashed.

In my view the workers compensation process is relentless and is why legitimate claims fall by the way side because it is designed to break a person so much they have nothing to continue with it. My mental health deteriorated so badly that in December 2023 I attempted suicide by self poisoning with prescription drugs including but not limited to diazepam and quetiapine. A fellow lawyer and friend called an ambulance to my address after I sent a series of messages ensuring my will had been finalised and in place so my daughter would receive any inheritance. The ambulance took me to the Mater Acute Unit on a “Schedule” and that schedule was upheld on examination by a psychiatrist but after I raised the issue and question of - if they kept me on an involuntary basis, who could represent me given that only Legal Aid appointed practitioners on the Mental Health Advocacy Service Panel (which I once worked on) could represent involuntary patients before the Mental Health Review Tribunal?

Obviously this would be a major conflict since Legal Aid NSW had caused the psychiatric injury – I was then released. I was however released with no paperwork, no discharge summary, no notification to my GP, psychologist, psychiatrist or any of other staff comprising of my treating team or any follow up whatsoever. In fact I was released with the bag of prescription drugs that I used to self poison that ambulance staff bagged up after a search of my residence. The first my GP came to be aware of my attempt on my life was on my own notification at her next scheduled appointment accompanied by my mother. It took 7 months to get ANY paperwork about this incident from the Mater Hospital and that required a fee that I had to pay.

From there despite being completely compliant with medical treatment, my mental state continued to deteriorate and I was hospitalised at Warners Bay Mental Health Unit from 29/05/2024-19/06/2024 on the basis of Post traumatic Stress Disorder and Major Depressive Disorder conclusively caused by my work as an employee at Legal Aid NSW. On 21 June 2024, so less than 48 hours after my inpatient discharge from a psychiatric facility, QBE reneged on their acceptance of liability pursuant to a section 78 notice. The notice included irrelevant evidence prior to the original acceptance of liability and even relied on an unsigned statement from the perpetrator of primary abuse with the acknowledgement in his unsigned statement that he would not be willing to give evidence in any future Court proceedings pertaining to this.

Included amongst s78 material was The Health Minister during Covid times Mr Brad Hazzards policy of 2020. I ponder what comment Mr Hazzard would make if he reviewed my case and was made aware that his document was being used in this manner to angle declination of a legitimate claim such as mine. Put it this way, if I was the maker of legislation and policy documents that was being used to cover a myriad of, years’ worth of, what I would describe as evils, perpetrated by a Government Sector employer upon one of their employees, I would take major issue with that. Anyway - I therefore literally got out of psychiatric inpatient status to homelessness as I could not afford rent.

My lawyers sought IRO funding to put a review to the Personal Injury Commission (PIC) which was rejected on the basis it was “premature.” Instead they advised to seek an internal review with QBE. My lawyers raised given QBE’s track record of complete mismanagement of my claim, this was an avenue they were extremely uncomfortable with. Nethertheless it was the only option, given the IRO refused to budge on their decision, rejecting funding. When I personally called the IRO, I asked the question “Is this usual? 12 months into a claim to reneg via a s78 notice?” The response I got from the IRO staff member was “Yes, we actually encourage s78 notices.” There is no other word than – shock – to describe how I felt at that response. The internal review with an updated statement from myself and voluminous updated medical evidence that was conclusive on diagnosis and causation was lodged on 22/07/2024. Still, QBE upheld their decision to reneg on liability, it is as if they did not even read the material. My lawyers were then left to preparing my PIC application. In the meantime, I was left without any form of income.

Medically, the discharge summary from the latest psychiatric inpatient stay could not be followed as privately I cannot afford the treatment which involves 1:1 intensive trauma therapy, psychology, psychiatry, exercise physiology and GP regular monitoring. A PTSD Day Program was also recommended however on assessment for that Day Program, the assessing psychiatrist deemed my dissociative symptoms too severe to participate in any group program. I was “scared” to go to Centrelink since the last time I was on Centrelink payments, the result of QBE stopping and starting payments at their whim, resulted in me accruing a $9000 debt through no fault of my own.

Even though QBE had reneged on liability, the Insurer’s lawyers sought confirmation of my attendance at their next IME with their psychiatrist scheduled on 27/08/2024. I agreed to this as in my mind I have nothing to hide. It was agreed by all parties though that if I did attend, when the psychiatric report was to hand, my matter would be determined “expeditiously” given the failures of the insurer along the way and the dire circumstances that left the “injured worker” in. So even in the midst of QBE reneging on liability and effectively “cutting me off” from income and medical treatment expenses, I on legal advice still complied with their request for another IME dated for 27/08/2024 that was then postponed by the Insurer/MedicoLegal to 28/08/2024. Legislation requires that a determination be made no later than 2 months post the IME date – that means in my case the expiration date for legal determination is 28/10/2024. The report was in fact confirmed to have already been sent from the medicolegal provider to QBE as early as 11 September 2024. Therefore they have sat (and continue to sit) on that report further drawing out this process for over 5 weeks now. I bring your attention to the statement issued to the journalist by QBE at this stage which reads “While we are unable to comment on the specific details of this matter, we acknowledge the concerns raised by Ms Sinclair. We appreciate this has been a difficult time and we acknowledge the claims experience fell short of the standards we aim to uphold. We have reviewed this matter and are committed to improving how we can do better in the future.” So the Insurer have made a public statement to media accepting that the administration of my claim has fallen “short of the standards” they aim to uphold but are presently continuing to break promises?

I will say at this point, what I have experienced whilst being under the NSW Workers Compensation scheme has been nothing short of disgraceful and in my respectful opinion verges dangerously on basic human rights abuses. A woman featured in Kathie Melocco’s upcoming docu-series “Shattered” compared the power imbalance and treatment of “injured workers” by the Insurer - and further other entities involved in the administration of it being the IRO, SIRA, ICARE and Ministers on a local state and federal level – to coercive control. I must say I completely agree with her and so does a professional practitioner that is part of my treating team. This system has all the markers of coercive control where the “injured worker” is completely under the financial and psychological control of the system – and once you are in it is very hard to escape it.

After I attended Kathie Melecco’s pre-screening for her doco-series “Shattered” with a former colleague also undergoing the workers compensation system, defendant again Legal Aid NSW, I obtained an email address for a special inquiry into SIRA’s handling of workers compensation matters and also a contact of a Technical Lead at ICARE to reach out to about my matter. I emailed both contacts. Within a few weeks, QBE had reinstated liability. Whilst I was extremely grateful for that intervention, I proceed, with extreme caution and distrust that I know in my heart can never be repaired. I have absolutely no trust in the NSW Workers Compensation scheme and the damage caused is irreparable.

In relation to the outstanding IME report, the Insurer’s Lawyers have claimed legal privilege over it. Therefore my lawyers, medical treating team and I cannot access that report. I was already aware by the medicolegal provider the doctor refrained from giving a WPI % as in his medical opinion maximum medical improvement (MMI) had not been reached. NOTE: which is a whole other issue in itself, how MMI can possibly be achieved within this system designed to retraumatise is a mystery to me and my treating team, one practitioner my GP has been my family Doctor for over a decade so knew me well and truly before any workplace issues – it is actually quite offensive to me personally who has been completely compliant with treatment modalities recommended since initial onset of symptoms in 2017 that there is an insinuation from a psychiatrist paid for by the insurer that meets with you for 40 mins to an hour maximum on a Video Link that only shows your face, can make such a determination that affects your whole life after trialling antidepressant, antipsychotic and sedative drugs such as/but not limited to Fluoxetine, Lamictal, Venlafaxine, Pristiq, Sertraline, Quetiapine, Risperidone, Valium, Clonidine, Periciazine, Prozasin, Gabapentin some of which causing (but again not limited to) dangerously low blood pressure, weight gain, weight loss, balance issues, heart palpitations, hallucinations, extreme loss of senses, bowel impaction and the most horrific lactation). I will note here for transparency purposes the first WPI assessment was 12 January 2024 who listed the WPI as at 24%. So I am in limbo AGAIN.

Injured workers already feel like complete failures professionally and to their families and the community, the treatment like this by the insurer only makes the situation worse. My treating team and current legal team have seen such a decline in my mental health conditions since being subject to this scheme. There needs to be EDUCATION to insurers and any stakeholders in the NSW Workers Compensation scheme about MH and the real life consequences of Case Managers attitudes and actions in administering workers compensation claims.

Otherwise you will continue to see situations and circumstances such as mine over and over again, and some don’t end like this – they end with suicides.

There are flow on effects for “injured workers” within this scheme that impact Medicare, Housing, Centrelink, Child Support and Tax. For example, not many people know ICARE has the ability to charge flat tax that is not in accordance with regular income tax tables that most of the general public go by. I have been trying to get to the bottom of tax issues with my wages through this scheme from inception to no avail – radio silence when pressed. Recently for the year 2023/4 tax return, I sought out a tax accountant to assist. To date, QBE have now amended their PAYG Summary to the ATO for the third time and my tax return therefore has been under investigation for a period of 3 months since lodgement. If I as an individual made that many false declarations to the ATO I would be prosecuted under Commonwealth fraud legislation. This is yet another example of the power imbalance between the “injured worker” and the Insurer and related Government agencies involved in this scheme. I have been made to provide as evidence to the ATO all bank statements for that period which clearly marks monies deposited into my account by QBE that were not congruent with the Insurer’s PAYG Summary which is sent on an ICARE NSW letterhead.

I was notified by the journalist who wrote of my story for SMH on 17 October 2024 that Legal Aid NSW did not make a direct comment on any of the specific issues I raise that were put to them but one – that was the issue of 2016 maternity leave rejection. I was informed that Legal Aid NSW gave a statement that maternity leave was accepted in July 2016. This is impossible to have occurred and completely is at odds with credible evidence available from compellable witnesses. I actually laughed as I suspect the only reason they would make comment about that particular issue is it is well known general rule of thumb that these kind of records only have to be held for 7 years. It has been a little over 8 years since the rejection of maternity leave application, that means it is entirely viable for these records to “disappear”.

Who has been made aware of all the issues respective to their areas and the state limbo I am in at the whim of the NSW Workers compensation scheme:

1. Jodie Harrison (Member for Charlestown (State), Minister for Women, Minister for Prevention of Domestic Violence and Sexual Assault)

2. Pat Conroy (Member for Shortland – Federal)

3. Rose Jackson (NSW Minister of Mental Health)

4. Sophie Cotsis (Minister for Industrial Relations of NSW)

5. Independent Review Office (IRO)

6. State Insurance Regulatory Authority (SIRA)

7. NSW Housing

8. Centrelink

A Word About Sharni

We first met Sharni through one of the women in Shattered. Sharni attended the pre-screening. To some degree being validated and learning that what is happening to her is happening to thousands of others has helped Sharni to find her voice but it has in no way taken away from the harm this cruel system dispenses under the guise of health but is really all about abuse.

It is a finance system pretending to be health and it is all about enslavement.

Sharni's courageous decision to speak out against the systemic abuse of injured individuals is not only commendable, but also a pivotal moment in exposing one of the most significant scandals our country has ever faced. Far from committing career suicide, Sharni has joined a growing chorus of voices through Shattered that can no longer be ignored.

The sheer volume of testimonies emerging about the mistreatment of injured people over decades has reached a tipping point. This widespread abuse, perpetrated by successive governments, has devastated thousands of lives in pursuit of financial gain. The scale of this scandal is staggering, with countless families torn apart and futures destroyed by a system designed to protect the powerful at the expense of the vulnerable.

Sharni's bravery in coming forward adds crucial momentum to Shattered's movement for justice and accountability. As more people step up to share their experiences, it becomes increasingly clear that this is not an isolated issue, but a deeply entrenched problem that demands immediate and comprehensive reform.

The government's attempts to hide the carnage have ultimately failed. The truth is emerging, and with it comes the opportunity for real change and accountability. Sharni and others like her who have chosen to speak out are the true heroes in this story, shining a light on a dark chapter of our nation's history and paving the way for a more just and compassionate future. The structural violence must end.

Sharni's emotional words from the heart

By Sharni Sinclair

"How can you ever write about how the systems you believed in since childhood turned out to be bullshit? How can you ever reconcile in your mind what you thought your life purpose was to serve a system that you believed in with all your heart turned out to be a crock of shit?

How can you put into words all you have lost by simply going to work, terrible things happening that were out of your control, asking for help from a system you were raised to believe in and yet that system furthers your trauma and leaves you wanting to end your life as being on this earth doesn’t make sense anymore?

How do you ever explain what it feels like to have to relive these things over and over just not in your mind but for the purposes to JUSTIFY your case in this workers compensation scheme how fucked up you now are? "

You can now learn for yourself of the harm being done to the injured on Workers' Compensation with the Shattered Moral Injury Training. It is suitable for lawyers, healthcare professionals, rehabilitation providers, insurers and policy makers. Access it below.