A decisive shift from compensation to rehabilitation and return-to-work
The Compensation for Occupational Injuries and Diseases Amendment Act is now operational, and it materially changes how employers must think about workplace injury and illness.
This is no longer simply a claims and payout issue. It is a rehabilitation and reintegration framework.
Key developments employers should note:
PTSD now expressly recognised
“Occupational disease” now specifically includes post-traumatic stress disorder, although no detailed definition is provided.
This is a clear elevation of mental health and psychological injury within workplace protection.
Expanded scope of compensation
“Compensation” now expressly includes:
- Medical costs
- Constant attendance care allowance
- Funeral costs
Assessment now includes rehabilitation
“Assessment” extends beyond disablement to include rehabilitation assessments, reinforcing the return-to-work imperative.
Broader definition of employee
Coverage now clearly includes:
- Temporary employment services (TES) employees
- Domestic workers
Misconduct no longer automatically excludes compensation
Even where an accident is attributable to serious and wilful misconduct, compensation remains payable, unless the accident results in serious disablement or death, leaving a wholly dependent beneficiary.
This marks a clear policy shift away from denying benefits on misconduct grounds.
Employer transport now squarely covered
Injuries sustained while being transported by or on behalf of the employer are deemed to arise in the course of employment.
Importantly, this coverage begins when the employee reaches the designated pickup point and ends at the designated drop-off point.
Training injuries are covered
Accidents occurring during work-related training undertaken in furtherance of the employer’s business are deemed to arise out of and in the course of employment.
Stricter reporting obligations
Employers must report workplace accidents within 7 days.
Failure to do so may result in a penalty of 10% of actual or estimated annual earnings.
The exact calculation basis remains unclear, but the financial exposure is significant.
Chat to our HR consulting team for more information on how these changes may affect your business operations if they are gazetted into legislation.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE).