Workers’ compensation is a form of insurance payment to employees if they are injured at work or become sick due to their work. Workers’ compensation
Workers’ Compensation is a compulsory insurance in each state of Australia and every employer must hold a workers’ compensation policy with a licensed insurer or with Workcover, the government agency responsible for overseeing the workers’ compensation and injury management system in Western Australia. Workers’ compensation protects you and your business from financial claims when a worker sustains a work related injury or disease. Some exclusion applies for workers compensation (eg sole traders).
Workers’ Compensation provides monetary and other compensation to workers injured at work or suffering an illness arising from work.
Grace Insurance will provide ongoing maintenance and support of your Workers’ Compensation Insurance. Our aim is to provide an effective, continuous level of service in the following areas:
- Review of policy, rate and classifications
- Support with documentation including wages declarations and claim forms
- Claims cost monitoring
- Arrange meetings with insurers
- Advice in implementing Risk Management Procedures
- Advice on claims and support on managing difficult claims
- General advice and support
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Frequently Asked Questions
If you don’t have workers’ compensation insurance, your business will be liable for the cost of the benefits paid if one of your workers has a work related injury or industrial disease.
Costs could include:
- in excess of $600,000 in benefits if a worker is injured
- legal costs involved in court action
- liability for the cost of any action taken at common law
- fines of up to $5000 per worker
- an amount equal to any avoided premiums going back five years
- separate and further offences for every week you remain uninsured after the date of conviction.
The legislation provides a very broad definition of a ‘worker’. It covers:
- full-time workers on a wage or salary
- part-time, casual and seasonal workers
- workers on commission
- piece workers
- working directors (companies now have an option as to whether working directors who have some ownership of the company and are ‘workers’ under the Act are to be insured)
- contractors and sub-contractors may also be defined as ‘workers’, depending on the circumstances of their working arrangement.
An employee works in your business and is part of your business. A contractor is running their own business.
Ability to subcontract/delegate: the worker can’t subcontract/delegate the work – they can’t pay someone else to do the work.
Ability to subcontract/delegate: the worker can subcontract/delegate the work – they can pay someone else to do the work.
Basis of payment – the worker is paid either:
- for the time worked
- a price per item or activity
- a commission.
Basis of payment: the worker is paid for a result achieved based on the quote they provided.
A quote can be calculated using hourly rates or price per item to work out the total cost of the work.
- your business provides all or most of the equipment, tools and other assets required to complete the work, or
- the worker provides all or most of the equipment, tools and other assets required to complete the work, but your business provides them with an allowance or reimburses them for the cost of the equipment, tools and other assets.
- the worker provides all or most of the equipment, tools and other assets required to complete the work
- the worker does not receive an allowance or reimbursement for the cost of this equipment, tools and other assets.
Commercial risks: the worker takes no commercial risks. Your business is legally responsible for the work done by the worker and liable for the cost of rectifying any defect in the work.
Commercial risks: the worker takes commercial risks, with the worker being legally responsible for their work and liable for the cost of rectifying any defect in their work.
Control over the work: your business has the right to direct the way in which the worker does their work.
Control over the work: the worker has freedom in the way the work is done, subject to the specific terms in any contract or agreement.
Independence: the worker is not operating independently of your business. They work within and are considered part of your business.
Independence: the worker is operating their own business independently of your business. The worker performs services as specified in their contract or agreement and is free to accept or refuse additional work.