Changes to NSW Workers' Compensation Legislation

Following the passing of two Amendment Bills to NSW Workers' Compensation Legislation, the landscape of workers’ compensation in New South Wales has significantly changed.

New laws in NSW change the way workers’ compensation benefits claims are assessed and paid and also impact return to work arrangements, affecting the majority of all new and existing workers’ compensation claims.

Some of the Key Changes

• A worker who is able to work must, in co-operation with the employer or insurer, make reasonable efforts to return to work in suitable employment, and may request their employer to provide such suitable employment.
• The employer must comply with this request so far as it is practicable.
• WorkCover inspectors are now authorised to issue employer ‘Improvement Notices’ if they believe the employer is not meeting their obligations in this regard. In addition, if they fail to meet their obligations, a penalty of up to $11,000 will apply.
• If a worker who is able to work fails to make reasonable efforts to do so, he or she may have their weekly payments suspended or – in extreme cases - terminated.
• Journey claims, after 19 June 2012, will only be available where there is substantial connection between the person’s employment and the incident out of which the injury arose. Normal journeys to and from work and home will not be covered.
• Injured workers receiving weekly benefits will undergo work capacity assessments at specified points throughout the life of their claim, and at least once in every two years.

Some changes are effective now, whereas others will be transitioned in the next 12 to 18 months. NSW Workcover has released an FAQ Factsheet and an Overview Factsheet outlining the changes.