What are employer’s obligations with workers’ compensation claims?

Understanding your obligations as an employer in terms of your workers making compensation claims is crucial.

HR Leader recently spoke to special counsel Belinda Hapgood, associate Kelvin Lee, and lawyer Sophie Wyatt at national law firm Holding Redlich about the workers’ compensation laws in Queensland, Victoria, and NSW regarding the differences in obligations for employers between these states.

“In Queensland, claims are governed by the Workers’ Compensation and Rehabilitation Act 2003 (Qld) (WCRA). An injured worker typically has six months from the date of injury, or 20 business days after being assessed by a medical practitioner as having an incapacity to work, to lodge a claim,” said Hapgood, Lee, and Wyatt.

“Once an employer is notified of an injury – either directly or through a report from the worker or insurer – they must submit a report to WorkCover within eight business days. Failing to report the injury in time is an offence under the WCRA. When the worker is medically cleared to return to work, the employer must assist WorkCover in facilitating a return-to-work program.

“This includes taking all reasonable steps to provide rehabilitation, often involving a suitable duties plan. If it is impracticable to create such a plan, the employer must provide WorkCover with written evidence. Failure to participate in rehabilitation programs can result in penalties.”

As mentioned, not following these steps can result in penalties for employers throughout Queensland. They also cannot dismiss a worker within 12 months of the injury occurring solely due to their incapacity to perform their job tasks. It was also stated that the employer must inform any temporary replacement workers of the injured employee’s right to return.

“In Victoria, claims are governed by the Workplace Injury Rehabilitation and Compensation Act 2013 (Vic) (WIRCA). An injured worker generally has 30 days to lodge a claim with WorkSafe. The claim form includes two parts – one for the worker and one for the employer, which must be submitted to WorkSafe,” said Hapgood, Lee, and Wyatt.

“Employers must maintain a register of injuries for injured workers to record the particulars of their workplace injury. Upon receiving notice of an injury, the employer must ensure that the workplace particulars of the injury are entered into the register and confirm in writing when they receive notice of an injury.

“Once a claim is accepted, employers will typically cover the first 10 days of the worker’s time away from work in accordance with the worker’s Certificate of Capacity. For claims comprising only physical injuries, the employer also has obligations to contribute to the initial cost of medical treatment for physical injuries.”

Similar to Queensland, employers also have a 52-week employment obligation period in which they must provide suitable employment, which includes access to pre-injury roles once the worker’s injuries have subsided.

“Employers must plan for the worker’s return to work as soon as they learn of the incapacity, consult with the worker and their medical professionals concerning the plan for return to work and notify WorkSafe once the worker returns,” said Hapgood, Lee, and Wyatt.

“In New South Wales, claims are governed by the Workers Compensation Act 1987 (NSW) and the Workplace Injury Management and Workers Compensation Act 1998 (NSW). Workers typically have six months to lodge a claim.

“Employers must notify iCare within 48 hours of being informed of the injury. If the worker is unable to return to their pre-injury role within seven days, a treating doctor is nominated, and a Certificate of Capacity is completed. Employers are required to maintain a register of injuries.

“Once a claim is accepted, employers must participate in iCare’s injury management plan and comply with all written obligations, provide a return-to-work program, and offer suitable work when possible. Under NSW law, employers must not dismiss an injured worker within six months of the injury.”

Overall, Hapgood, Lee, and Wyatt stressed the importance of employers across Australia understanding these rules, not only because it’s their obligation and the consequences can be tantamount but also because it’s simply good business practice.

“All Australian employers have a duty to act collaboratively with both their insurer and injured workers throughout the claims process. Prompt and responsive action is crucial to ensure that the employee can successfully return to work. Employers should consult with the worker and the worker’s medical professionals, as well as the insurer, to facilitate this process,” said Hapgood, Lee, and Wyatt.

“An early and collaborative return-to-work process is key to facilitating a successful return to work, which can reduce the employee’s time away from the workplace, benefiting the employer by reducing premiums and claim costs. It also helps avoid costs associated with temporarily filling the worker’s role and potential staff turnover. Managing workers’ compensation is not just a legal obligation – it’s good business practice.”

Kace O'Neill

Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.