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18 September 2024

Sweeping changes and heavy penalties under Queensland’s workers compensation scheme

Queensland businesses now face new penalties if they fail to provide their workers’ compensation insurer with information within five business days of a claim and prepare a return-to-work plan within 10 days of a claim’s acceptance in consultation with their employee. Several other changes have also been made through the Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2024 (QLD), that together place a greater responsibility on employers to manage workplace injuries in a prescribed manner. This article summarises the changes and what employers can do to ensure compliance. 

Summary of changes 

The Queensland Workers’ Compensation and Rehabilitation and Other Legislation Amendment Act 2024 received assent on 23 August 2024. The majority of changes took affect as of that date. The Amendment Act makes changes to several Acts; those most likely to affect national system employers are the result of changes to the Workers’ Compensation and Rehabilitation Act 2003. 

The key areas for change, including any associated penalties are outlined in the table below. As of 1 July 2024, a single penalty unit is $161.30. 

 

Key Area  Details  Penalty Unit (maximum) 
Notices for new employees 

 

Queensland employers must give workers a statement providing information about the workers’ compensation scheme as soon as they start employment, or within a practicable timeframe afterwards.

The statement, and the way in which it is given must comply with and requirements prescribed by regulation. The regulations have not yet prescribed the statement or the way in which it is to be given. A civil penalty applies for failing to provide the statement.
Failure to provide statement 

50 penalty units 

Providing information for a new claim 

 

Once a claim has been made, and WorkCover give a written notice to an employer requesting information regarding the claim, usually seeking details such as the worker’s pay and hours of work, the employer has five business days to provide that information. Where an employer has a reasonable excuse for not providing the information within the timeframe, this will be considered. Otherwise, a civil penalties apply for failing to provide the required information. Failure to provide information to the insurer within five business days 

300 penalty units 

Basic wage pending wage calculations If, after five days, the Workers Compensation insurer has not determined the appropriate wage they are to pay to the injured worker, they must make a payment of a basic weekly payment (an amount determined by legislation).  Importantly, if the employer pays this amount to the worker and it is in excess of the amount they are entitled to, based on the employee’s actual wages, the employer is responsible for the recovery of the overpayment to WorkCover. Recovery can be waived by the insurer under extenuating circumstances.  N/A
Rehabilitation and return to work plans  The insurer has an obligation to ensure that a Rehabilitation and Return to Work Plan is place within 10 business days after the worker’s application for compensation is allowed.  The plan must be prepared and reviewed in consultation with the worker and the employer, to the extent that it is reasonably practicable to do so. The employer must assist the insurer to meet their obligations. Failure of the employer to assist the insurer to meet their obligations 

500 penalty units 

Provide rehabilitation The employer of an injured worker must take all reasonable steps to assist or provide the worker with rehabilitation during the prescribed period for the worker. The penalty for failing to assist or provide the worker with rehabilitation has increased from 50 penalty units to a maximum of 500 penalty units. Failure to failing to assist or provide rehabilitation 

500 penalty units 

Scrutiny over suitable duties  If an employer forms the opinion it is not practicable to provide the worker with rehabilitation in the form of a suitable duties program, the employer must give the insurer a written notice stating the evidence relied on to support the opinion.  Failure to provide written notice 

100 penalty units 

Obligations for host businesses supplied with hired labour Where a worker has been supplied to host business as part of a labour hire agreement, the host business must cooperate with the labour hire business in their duties to provide or assist the worker with rehabilitation. This includes providing assistance with the labour hire business’ requirement to provide written notice regarding why suitable duties cannot be provided.  Host business fails to cooperate with employer 

300 penalty units

Choice of rehabilitation and return to work provider Once a claim has been accepted, an injured worker has the right to choose which rehabilitation and return to work provider is engaged to assist them and who attends medical appointments. This applies particularly to circumstances where the workers want to change providers. The employer must not interfere with the workers’ right to choose. N/A
Claim avoidance An employer cannot give a benefit or cause detriment to an injured worker if the reason is to influence the worker to not make a claim for workers compensation or other compensation related to an injury. For example, an employer cannot offer to pay the employee their wages for time off to recover from an injury if the reason for offering is to prevent them from making a claim. Similarly, the employer cannot threaten the employee with adverse action, including formal warning, dismissal or a refusal to offer future work to prevent an injured worker from making a claim. Employer takes prescribed action to avoid a claim 

500 penalty units 

Compliance with codes of practice  Employers must follow any approved Codes of Practice under the WCR Act. At present there are no codes of practice under the WCR Act. The Managing the risk of psychosocial hazards at work Code of Practice 2022 is an approved code of practice under theWork Health and Safety Act 2011.  Failure to follow a code of practice 

500 penalty units 

Compliance with the amendments 

It is recommended all Queensland businesses review the above changes and engage in consultation with key stakeholders within the business. There is now a greater emphasis on employers engaging with employees and their insurer as soon as possible once a workplace injury has occurred.  

It is recommended employers: 

  • consider and record what duties they can offer injured employees before any injuries occur
  • keep accurate records of time and wages ready to respond to requests for information
  • set accountabilities for managers and other relevant employees to ensure all employees are aware of who is responsible at each stage of a claim – e.g. who is to be notified of an injury, who develops the return-to-work plan, etc. 

In relation to recordkeeping, one possible error employers can make is the overpayment of an injured casual employee who could receive a basic wage in excess of the average weekly income. It is up to the employer to ensure the employee is correctly paid and suitable action can be taken to address recovery of the overpayment is needed, as recovery cannot be directly made from the employee. 

Importantly, some of the changes extend beyond the business and may require communication with labour hire providers and host businesses, and can involve a change in practices, especially where past business practices include action taken to avoid an injured worker making a claim. 

Workers’ Compensation Helpline for Employers 

Business Chamber Queensland operates the Worker’s Compensation Helpline. The helpline is available to all Queensland employers. It’s obligation free and completely independent from WorkCover and the Office ofIndustrial Relations. 

Through the helpline we can assist with any questions you may have about the changes to the WCR Act and assist you in meeting your compliance requirements. 

Phone: 1300 365 855
Email: [email protected] 

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How can Business Chamber Queensland help?

Business Chamber Queensland members with HR services as part of their membership are invited to contact the Workplace Advisory Services team.

P: 1300 731 988  

E:[email protected]  

A consultancy fee will apply for businesses who do not have a HR membership.

For membership enquiries, contact our membership team on 1300 731 988.