Western Australia has recently implemented significant changes to its workers’ compensation laws with the Workers’ Compensation and Injury Management Act 2023, effective from July 1, 2024.
This new legislation aims to modernise the system, enhancing clarity, fairness, and efficiency for all stakeholders involved.
Overview of the Act
The Workers’ Compensation and Injury Management Act 2023 replaces the outdated Workers’ Compensation and Injury Management Act 1981, which had been in place for over four decades. This change came after a lot of discussions and reviews to meet the changing needs of the workforce and improving the efficiency of the compensation system.
The new Act and Regulations took effect on July 1, 2024. They will apply to all policies that are issued or renewed, as well as any claims received from that date onward. For claims received prior to July 1, 2024, transitional arrangements will ensure that they continue to be processed under the framework of the new Act and Regulations.
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New WA Workers’ Compensation Laws for Employers.
The Act establishes new responsibilities and entitlement for employers in Western Australia.
- Employers must submit claims within seven days of being notified. Failing to do so can result in fines of up to $10,000 for each non-compliant employee.
- Know the new income compensation rates. Avoid underpaying workers and ensure accurate weekly payments.
- Employers are required to create return-to-work programs for workers who can return but may not be fully fit.
- The new laws include claims for industrial diseases, requiring proper registration of settlement agreements to release liability.
- Be aware of increased penalties for non-compliance, which can reach up to $10,000 for issues such as:
- Not paying compensation
- Not providing claims to insurers
- Lacking injury management systems
- Wrongly deducting from wages
New WA Workers’ Compensation Laws for Employees.
The Act establishes new rights and obligations for employees in Western Australia.
- Employees must file compensation claims within 12 months of injury, the same as the previous act.
- Be aware of adjustments to income compensation rates and step-down provisions over time. Safety net payments may apply in some cases.
- Participate in Return To Work programs, which are now mandatory even if unfit to work.
- Employees can choose their own medical practitioners.
- Be aware of potential employer penalties to ensure compliance.
- Stress-related claims from “reasonable management action” are excluded unless the actions are harsh and unreasonable. Thorough documentation of administrative actions will be necessary.
- Under the Catastrophic Injuries Support Scheme, catastrophically injured workers may now receive lifetime care and support, similar to those injured in motor vehicle accidents.
Comparison of Workers’ Compensation Laws: 1981 Act vs 2023 Act
The Workers’ Compensation Act 1981 and the Workers’ Compensation Act 2023 in Western Australia define the responsibilities of employers and the rights of employees regarding workers’ compensation.
While both acts share foundational principles, the 2023 Act introduces significant changes that enhance protections for employees and impose new obligations on employers.
| Aspect | Workers’ compensation Act 1981 | Workers’ compensation Act 2023 |
| Definition of Worker | Broad definition of a worker, but less clarity on specific categories | Clear definitions, including provisions for prescribed and excluded workers, and specific mention of labour hire arrangements |
| Compensation for Injury | General entitlement to compensation for work-related injuries | Detailed provisions for various forms of compensation, including income compensation, medical expenses, and rehabilitation costs |
| Deadline to Submit Claims | Must file compensation claims within 12 months of the injury | Must file compensation claims within 12 months of the injury, with specific provisions for extending this period under certain circumstances |
| Claim Process | Basic claim process with limited guidance on procedures | Comprehensive claim process outlined, including employer obligations to submit claims to insurers and provisions for workers to claim directly if employers default |
| Employer Submission Deadline | Employers had 5 days to send claim forms and medical certificates to insurers | Employers now have 7 days to send claim forms and medical certificates to insurers, or face up to $10,000 fine for non-compliance |
| Provisional Payments | Limited provisions for provisional payments during claim processing | Mandates provisional payments for medical and income compensation while claims are being assessed |
| Return to Work Obligations | Minimal emphasis on return to work programs | Employers are required to establish and implement return-to-work programs, ensuring positions are available for injured workers during recovery |
| Fines for Non-Compliance | Limited penalties for non-compliance with provisions | Specifies fines for non-compliance with insurance requirements, including penalties for employers who fail to insure or provide necessary information |
| Rights During Claims | Basic rights to claim compensation without detailed protections | Enhanced rights for workers, including protection against prejudicial treatment for resuming work and clear processes for disputing claims |
| Medical Assessments | No specific provisions for medical assessments | Clear guidelines for medical examinations and assessments of permanent impairment, including the role of approved assessors |
| Rehabilitation Services | Limited mention of rehabilitation services | Explicit provisions for workplace rehabilitation expenses and the approval of rehabilitation providers |
Key Points in the Modernised Workers’ Compensation Law
The recent updates to workers’ compensation laws in Western Australia have introduced several significant changes to enhance support for injured workers and streamline processes for employers and insurers.
Claim Process and Timelines
- Workers now have a 12-month window to file their claims.
- Employers are required to forward claim forms and medical certificates to insurers within 7 days.
- If employers fail to submit claims promptly, workers can directly submit their claims to the insurer.
- Insurers must issue a liability decision notice within 14 days of receiving a claim, with provisional payments starting within 28 days.
Medical Expenses and Treatment Choices
- The limit for medical and health expenses has been doubled, providing enhanced financial assistance to workers who sustain injuries.
- Workers now have the right to choose their healthcare practitioners.
- There is a prohibition on employers and insurers attending medical examinations, ensuring the privacy and integrity of the worker’s medical assessment.
Return-to-Work Initiatives
- Employers are now responsible for creating return-to-work programs to facilitate injured workers’ reintegration into the workplace.
- Injured workers must actively engage in these programs and comply with rehabilitation obligations.
- Workers are required to provide a progress certificate of their capacity to work within 7 days of returning.
- Employers can adjust or discontinue compensation based on the worker’s return to work, following appropriate notification procedures.
Income Compensation
- Compensation calculations will be based on the worker’s earnings over the previous 12 months.
- After 26 weeks, the weekly income compensation rate will reduce to 85% of the worker’s pre-injury income.
- Workers can receive income compensation while also taking annual leave.
Catastrophic Injuries
- The newly established Catastrophic Injuries Support Scheme (CISS) guarantees lifetime care for individuals who suffer catastrophic injuries from workplace incidents or motor vehicle accidents.
- The Insurance Commission of Western Australia (ICWA) will provide lifetime care services without duplicating compensation for medical treatment or healthcare costs.
Psychological Claims
- The legislation clarifies that stress-related claims resulting from reasonable management actions are excluded unless those actions are deemed excessively harsh or unreasonable.
Pre-Employment Screening
- Employers are now prohibited from inquiring about past workers’ compensation claims during the hiring process.
- Violations of this prohibition can result in penalties of up to $10,000.
Increased Penalties for Non-Compliance
- Penalties for non-compliance have been doubled from $5,000 to $10,000 per employee.
- Employers must submit claim forms and medical certificates within seven days to avoid penalties.
These comprehensive changes aim to provide better support for injured workers while ensuring that employers and insurers adhere to new standards and practices in the management of workers’ compensation claims.
Resources for Employers and Workers in WA
WorkCover WA is a state agency that oversees and manages the workers’ compensation scheme in Western Australia. However, it does not offer legal counsel concerning individual work-related injury claims or provide guidance on workers’ compensation insurance policies.
Legal Advice for Workers’ Compensation Claims.
If you have submitted a workers’ compensation claim or are preparing to file a work-related injury claim, our specialised workers’ compensation lawyers at CLP Legal can help you navigate the process and maximise your entitlements under the updated laws.
With extensive experience across various industries, our team is dedicated to providing personalised support. If you’ve suffered a workplace injury, contact us at 9339 9600 for expert guidance and assistance.
Need assistance with your claim?
In Perth, dealing with personal injury claims is easier with CLP Legal’s lawyers. We’re not just legal experts; we also support you emotionally, guiding you with care and understanding. Our knowledge and experience in personal injury law help get you the right compensation.
Our team works hard for the best outcome, giving you peace of mind. Call us at 9339 9600 for expert legal help with your personal injury claim.
