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Employers must prepare for the Reform of the Victorian Workers Compensation System
Although the existing laws will remain, various aspects of this legislation have been repealed, redrafted and amended.
Changes to the Return to Work Regime
As a result of the Amending Act, employers will be required to do the following to the extent that it is reasonable to do so:
- Return employees to work where they have a partial or complete capacity to do so (for a period equal to 52 weeks following their first notification of a claim);
- Plan the return to work of a worker;
- Consult with the worker regarding the return to work;
- Nominate a return to work coordinator, and
- Make a return to work plan available.
Penalties of up to $100,000 will be imposed on employers who fail to meet these obligations to the relevant standard.
Improvement Notices
The amending legislation will also significantly increase the powers of the Workcover Return to Work Inspectors. Inspectors will have the power to enter workplaces to obtain documents and will also be authorised to issue ‘improvement notices’. Such notices will be issued when an employer is perceived to have breached its return to work obligations and that employer will be required to take steps to remedy the breach.
Employers issued with an improvement notice will have an administrative right to appeal that notice.
‘Stress Claims’
The existing legislation excludes employees from compensation for certain workplace psychological injuries where they have arisen from a limited range of ‘management action’.
The Amending Act has clarified this exclusionary provision by providing an extensive definition of ‘reasonable management action’. For example, under this definition, reasonable management action includes reasonable steps taken in:
- The investigation of misconduct allegations either by the worker or witnessed by the worker; and
- Counselling workers.
Employers will remain liable for injuries caused by unreasonable action.
Increase in payments
The Amending Act contains significant increases in certain payments, including:
- Maximum lump sum death benefit;
- Maximum lump sum benefit for personal injury;
- Shift allowances and overtime calculations; and
- Superannuation contributions.
Anti-Discrimination
The Amending Act introduces laws prohibiting the discrimination of employees on the basis that they have given notice of an injury or have taken steps to pursue a claim for compensation.
Both criminal and civil remedies will be introduced in this area. Employers could face criminal penalties of over $100,000 and awards for civil damages. Employees will also have the possibility of reinstatement.
It is vital that employers understand their obligations under the reforms to the Victorian Workers Compensation System, and the harsh criminal and civil consequences that they could face if these obligations are breached. Comprehensive management and training is crucial to ensure that these penalties are avoided at all costs.
The information featured in this article should not be relied upon in place of legal advice. For advice on the Victorian Workers Compensation Reforms, or employment law generally, do not hesitate to contact us.
