The woman, who works for a federal agency, suffered injuries to her nose and mouth when a glass light fitting above the motel room bed fell while she was having sexual intercourse in New South Wales in November 2007, The Sydney Morning Herald reported Monday.
Workplace health insurer Comcare had appealed the woman's worker's comp claim, saying the injury had nothing to do with the woman's job, but the Federal Court sided with the woman, who argued the her employer was responsible for her for the duration of the trip.
"If the applicant had been injured while playing a game of cards in her motel room she would be entitled to compensation even though it could not be said that her employer induced or encouraged her to engage in such an activity," the judges said.
A Comcare spokesman said the company is deciding whether to appeal to the High Court.
"The issue is a significant one. Workers need to be clear about their entitlements and employers should have an understanding of their responsibilities and how to support their staff," he said.