SIGNIFICANT TASMANIAN WORKERS COMPENSATION REFORMS

The Workers Rehabilitation and Compensation Amendment Act 2009

On the 1 July, 2010 the law relating to workers compensation entitlements in Tasmania was significantly altered by the commencement of the Workers Rehabilitation and Compensation Amendment Act 2009. This legislation represents the Government’s response to the Clayton Report and significantly increases the statutory benefits payable to all injured workers as well as improving the ability of seriously injured workers to institute common law proceedings against negligent employers.

The new legislation also imposes a far more comprehensive system of injury management and is intended to foster and reinforce a return to work culture among employers, workers and other stakeholders.

The major changes implemented by the reforms which are now in place are as follows :-

Transitional Provisions

With some limited exceptions the amendments embodied in the reform legislation do not apply in relation to a worker in respect of an injury suffered prior to the 1 July, 2010.

Increased Benefits

	i)	Less onerous step down provisions
	ii)	Extension of time for which weekly benefits are payable
	iii)	Increase in lump sums payable for death or permanent impairment
	iv)	Extension of time for provision of medical expenses

The threshold for common law claims for damages has been reduced. Prior to the amendments a worker was only able to institute common law proceedings claiming damages for the negligence of the employer provided there was a 30% or more whole person impairment. The amendments made mean that claims for damages for injuries suffered after the 1 July, 2010 will be capable of being prosecuted by workers with a whole person impairment of 20% or greater.

Restrictions on settlement - The legislation now prohibits workers and employers setting any claims for compensation by agreement within two years unless the Tribunal has specifically approved the settlement.

Other relevant changes - Renewed focus upon injury management.

Significant obligations are imposed upon employers to disclose medical reports obtained in respect of any injured worker and restrictions on a number of occasions when workers are required to submit to medical examinations.

Removal of ability of employers to terminate weekly payments for non compliance with a Return to Work Program without the approval of the Tribunal.

Obligations imposed upon employers to consult with workers regarding suitable alternative duties.

Summary

The changes imposed by the Workers Rehabilitation and Compensation Amendment Act 2009 are significant and extensive. The amendments certainly appear to have significantly improved the position of injured workers within Tasmania. There are however, likely to be operational problems implementing some of the legislative changes.

The extent to which the new amendments prove problematical remains to be seen as does the extent to which the costs of claims within Tasmania are likely to increase. It would appear however that any procedural or other difficulties which may ultimately eventuate are predominantly likely to adversely affect employers and insurers rather than injured workers themselves.

Graham Wood,
Partner