From 1 July 2024, the new Workers Compensation and Injury Management Act 2023 (the Act) will come into effect. The Act is a complete rewrite and modernises WA Workers Compensation laws.
In WA, employers are legally required to hold a current Workers Compensation insurance policy from an approved insurer to cover their workers and business against a workplace injury/illness.
In preparation for these changes, we have identified some of the key legislative amendments to assist you with transitioning to the Act:
- Refined exclusion of stress-related claims: Exclusion of psychological claims which result from formal, reasonable administrative actions (mostly disciplinary) undertaken by a worker’s employer.
- Revised calculation of income compensation: The rate of income compensation will be calculated for one year ending on the day before the worker’s injury occurred (previously 13 weeks); or the period beginning on the day on which the worker commenced to be employed in that position and ending on the day before the worker’s injury occurred (if less than one year).
- Comprehensive coverage for catastrophic injuries: Provision of an optional pathway into the Catastrophic Injuries Support Scheme for seriously injured workers to be on the same footing as a person catastrophically injured as a result of a motor vehicle accident (lifetime tailored care and support).
- Amending the Limitation Act 2005: Workers suffering silicosis are now on the same footing as workers with asbestosis.
- Enhanced financial support for workers: Doubling of the medical and health expenses cap (from $73,197 to $146,395) and extending the point at which weekly compensation payments step down (from 13 weeks to 26 weeks).
- The Act confirms that workers can take annual leave and accrue sick leave, long service leave and annual leave while on income compensation.
- Provisional payments to be made on deferred (pended) liability claims: If an insurer is unable to make a determination on liability within 28 calendar days, provisional payments of income compensation and medical expenses must commence from the date of first incapacity. If an insurer is unable to dispute a claim within 120 days of receiving it, liability will be deemed accepted.
- Pre-employment screening limitations: The Act prohibits the disclosure of information about a worker’s claim for compensation (or claim history) to another person for the purpose of pre-employment screening.
Covering your Workers
The Act provides a broad definition of what is considered a worker. It is important to discuss your workforce structure (including your working arrangement with contractors and subcontractors) with your insurance broker to understand your workers compensation policy obligations.
Please refer to WorkCover WA for more information on the updated definitions of:
- A worker
- Contractors/subcontractors
- Interstate workers
- Overseas workers
- Working directors.
Submitting a Workers Compensation Claim
Employers now have seven calendar days to lodge a workers compensation claim with their insurer once they have received the following from the injured worker:
- The completed Workers Compensation Claim Form
- The WorkCover WA prescribed First Certificate of Capacity.
Failure to meet this statutory requirement may result in WorkCover WA imposing a financial penalty.
An employer’s report of injury form should also be completed.
The insurer is responsible for assessing the workers compensation claim. Liability is determined by the insurer within 14 calendar days, and they must advise in writing whether the claim has been accepted, disputed, or deferred if additional time is required to make a decision.
Keeping Records
Employers must keep current and accurate remuneration records for seven years which includes the following information:
- Number of workers insured under the workers compensation policy;
- The industry classification on which the premium was determined;
- The total remuneration paid during the period of insurance, and
- Any other records that are relevant to the calculation of premiums payable under workers compensation policies.
Employers may need to provide records in the event this information needs to be reviewed by WorkCover WA. For more information, please visit WorkCover WA.
We are here to help
Workers compensation claims can be complicated and time consuming; the EBM Injury Management team provides guidance through the process, providing proactive claims management assistance. Our team of specialists have extensive experience in handling complex workers compensation claims and are here to help your business navigate this process.
Key support provided by the EBM Injury Management team includes:
- Assisting your business and insurers in overseeing and implementation of claims management from a strategic, legislative and advocacy perspective for all active workers compensation claims.
- Attendance at meetings, informal conferences, and hearings where appropriate.
- Providing support and mentoring to your personnel on employer and employees’ workers compensation obligations.
- Assisting with the review, evaluation and providing recommendations with regards to your workers compensation procedures.
- Providing recommendations on service providers within the workers compensation scheme with proven outcomes.
- Ad-hoc workers compensation advice and support.
For more information about EBM’s Injury Management team, please contact us.
Guide to WA Workers Compensation
To assist your business in understanding your insurance and risk requirements, please refer to EBM’s WA Workers Compensation: A Guide for Business.
Working with you to understand your business requirements
Your EBM Account Manager is here to help with your workers compensation requirements and will take into consideration:
- The scope of cover required including statutory benefits, common law and journey claims.
- Contractual requirements extending to accommodate principals’ indemnity, waivers and hold harmless provisions, where available.
- Your claims history.
For more information or queries, please contact us.
For more information about these changes click here.
