This article outlines the aspects of the Workers’ Compensation changes and tips to manage Workers’ Compensation claims in the workplace.

Key changes

1. Eligibility - Mental Health Claims

The significant reforms include the limitation of Workers’ Compensation for some mental health injuries.

An employee who makes a successful claim for ‘burnout’ or ‘stress’ will no longer be eligible for weekly payments. Rather, their entitlement will be limited to provisional payments for 13 weeks to cover medical treatment and additional assistance to support return to work or training opportunities.

The limitation will only apply to new claims for Workers’ Compensation once the changes come into effect. There will be no impact on existing claims in the system.

The Government advised the changes would not impact workers who make claims for other mental injuries, such as those arising from workplace harassment or bullying.

2. Eligibility – Claims lasting longer than 2.5 years

There will also be a change to eligibility for weekly payments beyond two-and-a-half years.

To continue to be eligible for weekly payments beyond this time, a worker will need to demonstrate a ‘whole person impairment’ rating of greater than 20 per cent.

The above changes to eligibility need to pass parliament. If they do, they will come into effect in 2024.

3. Return to Work Victoria

The reforms also include the establishment of a new body, Return to Work Victoria, with a focus on assisting people who have been off work due to injury to re-enter the workforce.

4. Premium Increase July 2023

In addition to the proposed legislative changes, the Government announced a significant 42 per cent increase to premiums paid by business, from 1.27 per cent of their payroll to 1.8 per cent. This will come into effect on 1 July 2023.

Managing Workers’ Compensation claims

These changes serve as a timely reminder to ensure you are actively managing any Workers’ Compensation claims in your workplace. The Victorian Chamber has set out three top tips to assist you in navigating these claims:

1. Stay in touch with your insurer/agent

A lengthy Workers’ Compensation claim can be time consuming. However, your insurer (or agent) should provide constructive and active support to help get your employee back to work.

Insurers should have access to medical information about the status of the employee and can work with you to plan a staged return to work. If the employee cannot return to their job at your workplace, your insurer can also help the employee find a job elsewhere.

The Victorian Chamber’s Workplace Consultants can assist with a strategic approach to navigating the Workers’ Compensation system, as well as managing your employment risk and obligations. Learn more about how we can help by clicking here.

2. Beware of blending processes – keep Worker’s Compensation separate!

It is important that any Worker’s Compensation process is kept separate from other matters that involve the employee. For example, you may form the view that your employee cannot perform the inherent requirements of their role, there may be unresolved performance or conduct issues, or you may no longer require the role (especially if it has been vacant for some time). Any of these matters could compound the risks or challenges of appropriately managing the employee’s absence from work.

It is critical that employers make reasonable attempts to obtain objective information as the basis for any workplace decisions. It may be tempting to rely on information gained as part of the Workers’ Compensation matter but it is important to obtain separate information even if it turns out to be similar or the same as information you have already received as part of the Worker’s Compensation claim. Penalties for breaching this requirement can be significant.

It’s also important to keep your obligation timeframes in mind. For example, employers must offer “suitable work” to an employee for the first 52 weeks after their injury (where a Workers’ Compensation claim has been accepted).

3. Maintain lines of communication with your employee during their absence

While it is important to stay in touch with your insurer/agent, it is equally important to maintain communication with your employee.

There may be a period of time in which it is not appropriate to contact your employee (e.g. when they have no capacity for work). However, once they are fit to do so, you can start to engage with your employee to support their recovery and return to work.

Getting the balance right when communicating with your employee can be difficult, so we recommend you seek advice to ensure you are following an appropriate process. It is also important to regularly communicate with the employee’s healthcare provider regarding the status of their condition.

Employers should also be mindful of any employees on Workers’ Compensation when considering any significant operational changes. If an employee on Workers’ Compensation may be affected by the change, they should be consulted as part of any consultation process. Failure to do so could exacerbate an employee’s condition and hinder the return-to-work process.

How the Victorian Chamber can help

The Victorian Chamber has a team of Workplace Relations and Health, Safety and Wellbeing Advisors and Consultants. The team has an impressive background and a wealth of experience putting them in the best position to support your business. For more information on how we can support your business or to access our consulting services call us today on (03) 8662 5222.