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How workers’ compensation law is about to change for every business

Significant changes to workers’ compensation law have been passed by the Victorian Parliament that will change the way all employers need to respond to claims for mental injury.

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What is changing and why?

Workers who submit a claim for mental injury will soon be entitled to receive ‘reasonable’ medical and related services while liability for their claim is still in the process of being determined. Additionally, even if the worker’s claim is rejected, they are still entitled to continue receiving these services for up to 13 weeks from the date of lodging the claim.

‘Reasonable’ medical and related services are defined under Section 224 of the Workplace Injury Rehabilitation and Compensation (WIRC) Act to include items like medications, consultations with general practitioners, psychologists, psychiatrists, and the cost of travelling to treatment.

The primary reason for these changes is clear: prompt access to treatment is a critically important factor in helping people recover from mental injury and illness. Conversely, the longer a mental injury goes untreated, the more likely it is to become a long-term condition which will severely impact both the worker’s ability to return to work and the employer’s WorkCover premium.

Under the existing system, many workers whose mental injury claims have been rejected are successful in having their claim accepted (fully or partially) on appeal - either through the Agent or at the Accident Conciliation and Compensation Service (ACCS). These changes will allow workers to get the support they need more quickly and minimise the risk of their mental injury being exacerbated during a protracted liability dispute.

What does your business need to do?

After these changes come into effect, employers and business leaders will need to submit any mental injury claim to your Agent within three business days of receiving them from the injured worker who is submitting the claim. Your WorkCover agent will then have two business days to determine whether the worker is eligible to receive medical and like services. A worker will therefore be able to access treatment within five business days of submitting their claim.

WorkSafe will also be changing the workers’ compensation claim form to allow workers to indicate whether they have a mental injury, removing any ambiguity for the employer about what type of claim they are submitting. There will be penalties for employers who take longer than three business days to submit mental injury claims from their workers, along the same lines as those that currently exist for employers who fail to submit other claim types within 10 days.

When do these changes come into effect?

These changes have been passed by the Victorian State Parliament and have received Royal Assent. It is unclear at this stage when they will be proclaimed to come into effect, but the date is likely to be 1 July 2021 at the earliest, and 1 January 2022 at the latest.

We are here to support Victorian employers

The best way to manage claims for mental injury is to prevent them in the first place.

As an employer, there are simple and achievable steps you can take now to address the underlying causes of work-related mental injuries and illnesses.

The Victorian Chamber’s Health, Safety and Wellbeing team offer a comprehensive range of mental health training and consulting services to help you build and maintain a mentally healthy workplace.

Contact our consultants on (03) 8662 5196 or at HSW@victorianchamber.com.au to talk about how we can make your workplace safer.

The Victorian Chamber’s Workplace Relations Advice Line also offers general advice on a range of workplace issues, including:

  • Award interpretation, classification, and minimum entitlements
  • Disciplinary processes, performance management and termination
  • Personal illness and injury
  • Parental leave and flexible working arrangements
  • Redundancy
  • Occupational Health and Safety and WorkCover

For assistance on any aspect of your employment obligations, please call the Victorian Chamber Workplace Relations Advice Line on 8662 5222.

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