General
There are two compensation schemes in Western Australia in relation to injuries suffers at a workplace. They are;
The no fault statutory scheme
All employers in Western Australia (unless they are covered by the Federal ComCare scheme) are required by law, to obtain workers’ compensation insurance covering them for their liability to pay benefits to injured workers, pursuant to our “no fault” workers compensation scheme.
An injured worker intending to apply for benefits must;
Completed a claim form; and
Obtained a first medical certificate
give those documents to the employer within 12 months from the occurrence of the injury.
What is an injury
The legislation defines an injury to include a personal injury by accident arising out of or in the course of the employment, or whilst the worker is acting under the employer’s instructions. Other non physical injuries are also covered including stress related conditions where the employment is a contributing factor and contributed to a significant degree but incapacity from stress will not be compensible if the stress was wholly or predominantly caused by certain factors including dismissal, retrenchment, demotion, discipline, transfer or redeployment unless the employers behaviour was unreasonable and harsh.
Benefits
Assuming;
the employer is required to pay statutory benefits (limited to a “prescribed amount”) which comprise;
The current (20/21) prescribed amount for weekly payments is $235,971 but in limited circumstances eg total and permanent incapacity, the limit can be increased
A workers compensation rate is calculated depending on whether or not they are paid pursuant to an industrial award (including enterprise orders, collective agreements and enterprise bargaining agreements). If a worker is not paid pursuant to an award, there is a “step down” process after 13 weeks incapacity, resulting in weekly compensation being reduced to 85% of the person’s pre accident average weekly earnings calculated over a 12 month period. There is no “step down” for award workers although after 13 weeks, overtime, bonuses and other allowances may not be included in the calculation of the on going weekly benefit.
A weekly payment of compensation is capped at twice the average weekly earnings as calculated by the Australian Bureau of Statistics. That rate is currently, $2,645.90 (2020/21).
Weekly compensation payments do not include superannuation.
The current (2020/21) prescribed amount for medical expenses is $70,791 but again, there are limited circumstances in which the limit can be increased.
The current (2020/21) prescribed amount for $16,518.
Weekly payments will continue subject to the provisions of the legislation whilst a medical practitioner certifies the worker totally or partially incapacitated by reason of the injury.
Medical certificates must be obtained on a regular basis and delivered to the employer or its insurer.
Cessation of payments
An injured workers right to ongoing weekly payments and other benefits may cease if:
Job security
The legislation protects an injured workers employment for a period of 12 months from when weekly payments commenced. Within that period, if the injured worker recovers, even partially, the employer must provide the injured worker with
(i) For which the worker is qualified; and
(ii) That the worker is capable of performing,
most comparable in status and pay to the position held at the time of the injury.
During the 12 month period, if the employer intends to dismiss the injured worker, 28 days notice of that intention must be given to the worker and to WorkCover WA by completing Form 15G here.
WorkCover WA will then determine if any further information is required and a Compliance Officer may contact the employer to discuss details of the termination.
If a worker is in receipt of weekly payments at the time of dismissal, they will continue to receive statutory weekly repayments and medical/related benefits.
Dispute resolution
Disputes are referred initially to the Workers Compensation Conciliation Service by completing a Form 100. The form can be lodged on line. A link to the forms is included below at Useful Links.
The primary role of the service is to resolve disputes by agreement with the assistance of an independent and impartial Conciliation Officer.
Each party is given the opportunity to present their position and support it with evidence and other information. This may occur quickly and informally over the ‘phone or face-to-face in a conciliation conference conducted in private (unless Covid 19 restrictions apply in relation to face to face meetings)
WorkCover publishes a useful Guide to Workers Compensation Conciliation Service. See the Useful links below.
If a dispute is not resolved at Conciliation, the Conciliation Officer will issue the parties with a Certificate of Outcome. Within 28 days of the date the certificate was issued, an application may be made to have the dispute referred to the Workers Compensation Arbitration Service. The forms have been included in the Useful links below.
Arbitration can be a complex, costly and time-consuming process.
Again WorkCover publishes a useful Guide to the Arbitrations Service. The Guide is included in the Useful links below.
The parties have the right to be represented by legal practitioner or registered agents and at Conciliations and Arbitrations.
Common law
All employers in Western Australia (unless they are covered by the Federal ComCare scheme) are required by law, to obtain workers’ compensation insurance covering them for their liability to pay damages at common law to an injured worker.
General duties
The common law requires an employer to take reasonable care to avoid exposing an employee to an ‘unnecessary risk of injury’. The duty is that of a reasonably prudent employer and it is not a duty to ‘safeguard a worker completely from all perils’
That duty encompasses an obligation to take reasonable steps to provide a safe system of work. Discharge of the duty requires the employer to warn employees about work hazards of which it knew, or ought to have known. It also extends to guarding against foreseeably inadvertent and negligent conduct on the part of others.
The duty also encompasses an obligation to take reasonable steps to provide safe plant and equipment to enable employees to carry out their work safely.
The duty of care is non-delegable. This means that an employer cannot escape responsibility for the discharge of the duty of care by delegating it to a third person. The non-delegable nature of the duty of the employer extends to the situation where an employee is working at the premises of another (for example, labour hire situations). The employer must still take reasonable care for the safety of the employee.
If the injury is caused by, or arises out of an unsafe system of work, it must be an unsafe system of which the employer was aware or ought to have been aware.
A Court must not use the benefit of hindsight when considering what an employer ought to have done.
In Western Australia, like most other states, we have certain workplace occupation and safety legislation applying to each worksite. The legislation includes the Occupational Health and Safety Act 1984 and Regulations 1996 and its provisions can be taken into account by the Courts when determining whether or not an injury was caused by an employer’s negligence.
The legislation covers a range of workplace issues including;
The process involved in pursuing a claim for damages can be complex and may involve a worker making a choice between retaining the worker’s rights under the no fault scheme or abandoning those rights and electing to “go common law”.
To access common law damages, certain things must happen as follows;
There are considerable risks associated with the prosecution of a common law claim including the following;
The good news is that over 90% of common law claims are settled without the claim going to court. Although the risks are significant, with proper processes in place, the risks can be managed to ensure a favourable outcome.
The other good news is that workers who have a certified whole person impairment of not less than 25%, will continue to receive statutory benefits in accordance with the provisions of the Act, and there is no cap on the amount damages they can receive.
Damages
Depending on the nature of the injury and the circumstances of each case, common law damages are awarded under various well established “heads” or “components” as follows;
Covering pain and suffering, loss of the enjoyment of life, loss of bodily function, disfigurement and loss of expectation of life.
The assessments are subjective and often will depend on whether surgery has taken place, whether the surgery was successful, whether further surgery is recommended, the extent of the on impairment and the nature of medication prescribed for the condition. A wide range of factors are taken into account;
Covering past loss of wages (which may or may not have been paid in statutory weekly payments of compensation)
and
the discounted value (applying the statutory 6% discount tables as required by section 5 of the Law Reform (Miscellaneous Provisions) Act 1941) of a workers future loss of capacity/income calculated, in the absence of any other evidence, to the eligibility date for the age pension, based usually, on evidence from any one or more of the;
plus superannuation
The assessment of the value of a workers retained earning capacity and the discounted value of the loss of earning capacity into the future is a complex process with potentially, much scope for negotiation particularly when there is a conflict in the medical evidence.
Covering the expected future cost of medical and specialist reviews, medication, treatment (physio, chiropractic, massage, acupuncture etc), future surgery, aids and appliances, etc
Covering family and friends gratuitous care, other gratuitous services, housekeeping services, support services, handyman and heavy work assistance including cleaning, home modifications,
In more complex claims involving serious brain injuries for example, the heads of damage can be quite extensive. Conversely, not all workers will suffer losses under each category.
These damages are calculated without reference to the amount paid under the statutory “no fault” compensation scheme although at the end of the process, those payments are accounted for in the overall net amount payable. An injured person cannot be compensated twice for the same injury.
Useful links
Workers compensation
Common law
Fair work
The Fair Work Commission deals with the protection of certain work place rights and applies to some employers like corporations which are incorporated under Federal laws. When these rights have been breached, action may sometimes be taken to recover compensation.
The rights include;
and will operate to protect you from workplace discrimination (on the grounds of for example, age, sex, race, physical or mental disability), victimisation and unfair treatment.
The law prohibits your employer for taking “adverse action” against you such as;
The Commission can also deal with applications to stop bullying behaviour in the workplace. It must be shown that the person has repeatedly behaved unreasonably and that the behaviour created a risk to health and safety.
The Commission can also deal with issues concerning your dismissal if it is unfair or for a prohibited reason.
Worksafe
Reporting and investigating industrial accidents
If you are an employer, you have a statutory duty pursuant to section 23I the Occupational Safety and Health Act 1984, to FORTHWITH report to the Commissioner for Occupational Safety and Health using prescribed forms here.
any accident or disease that results in;
a fatality
a fracture of the skull, spine or pelvis;
fracture of any bone —
(i) In the arm, other than in the wrists or hand;
(ii) In the leg, other than a bone in the ankle or foot;
an amputation of an arm, a hand, finger, finger joint, leg, foot, toe or toe joint;
the loss of sight of an eye;
any injury which, is likely to prevent the employee from being able to work within 10 days of the day on which the injury occurred.
Certain industrial diseases must also be reported
In some cases eg a fatality, the information can be provided by ‘phone (1800678198) but the Commissioner will require a minimum of the following;
An employee has a statutory duty to forthwith, report to the employer, any injury or harm suffered at work. When such a report is made, the employer has a statutory duty pursuant to section 23K of the Occupational Safety and Health Act 1984 to investigate the report, determine what action, if any, the employer intends to take and notify the employee of what action is proposed.
Safety legislation
The WorkSafe Division of the Department of Commerce (referred to as WorkSafe) is responsible for the administration and enforcement of the Occupational Safety and Health Act 1984 (the OSH Act) and its accompanying regulations, the Occupational Safety and Health Regulations 1996 (the Regulations).
The legislation offers a framework of rules and regulations applying to any workplace as well as a regime for enforcement including prosecuting a party for failure to comply with the legislation.
Prosecutions
Worksafe has a detailed Prosecution Policy which aims to ensure decisions in relation to prosecutions are based on appropriate criteria which are public, open, fair and capable of being applied consistently across the broad range of circumstances to which the occupational safety and health laws apply. WorkSafe says it will avoid arbitrary decisions (whether or not to prosecute), and will ensure prosecutions are not conducted for improper purposes, capriciously or oppressively.
The policy reflects the principles in the Statement of Prosecution Policy and Guidelines issued by the Director of Public Prosecutions (DPP) and published in the Western Australian Government Gazette on 3 June 2005. In particular, this policy adopts the principles that, before proceeding, a prosecution must:
Based on the policy, where a WorkSafe inspector obtains sufficient evidence to establish a prima facie case, and there is a reasonable prospect of a conviction, consideration will be given to taking prosecution action, instead of or in addition to applying alternative enforcement actions, where:
Prosecutions are conducted by a WorkSafe lawyer or a lawyer from the State Solicitor’s Office.
WorkSafe maintains a public register of prosecutions since 1 January 1997. Read more.
Factors that may weigh in favour of prosecution
Factors that may weigh in favour of prosecution include:
Factors that may weigh against prosecution
Factors which may, singly or in combination, render a prosecution inappropriate in the public interest (and against which the factors in favour should be balanced) include :
Irrelevant factors
The following matters are not to be taken into consideration in evaluating the public interest:
The race, colour, ethnic origin, sex, religious beliefs, social position, marital status, sexual preference, political opinions or cultural views of the alleged offender. (The DPP’s guidelines contain an exception where the matter is an element of the offence, however it is not likely that such an exception would ever be applicable to any WorkSafe matter);
The possible political consequences of the exercise or non-exercise of discretion;
The prosecutor’s personal feelings concerning the alleged offender or victim; and
The possible effect of the decision on the personal or professional circumstances of those responsible for the decision.
Insurance for income protection, total and permanent disablement
Many people have insurance protecting their income in the event that they are unable to work due to illness or injury.
Many people are unaware they have such insurance because often, the polices are part of the persons superannuation package or are benefits maintained on their behalf as part of Union membership.
The policy wording is not always the same nor are the benefits in the event of total or partial incapacity. The duration of benefits is commonly limited to 2 years but can be longer. In some cases, the benefits are ongoing to retirement age.
In cases where the person has a total and permanent disablement, other benefits might be payable in terms of a lump sum.
Before you make an appointment to see us concerning your claim, it would be useful to obtain a copy of your policy and all relevant schedules from the insurer.
News
Fatal accident; prosecution
In July 2014, in the matter of BHP Billiton v Capon 2014 WASC 267, the Supreme Court considered whether BHP was properly convicted of an offence under section 9 of the Mines Safety and Inspection Act arising out of a fatal accident involving one of its employees in 2008 when he was carrying out remedial work on a scissor lift.
Workcover seminars
WorkCover WA holds a seminar every quarter to provide an introduction to the workers’ compensation scheme in Western Australia.
Current prescribed amounts
WorkCover’s new Schedule of prescribed amounts for;
Workers compensation legislative review
In 2010, the Government approved a two stage review process to replace the current workers compensation legislation. The review process proceeded with the first stage being completed with the passage of amendments to the current Act in 2011.