Workplace Information Support for Western Australia

How is my premium calculated?

There is no set formula to how your premium is calculated. The insurer considers the following to determine your risk and issue you with a premium rate:

• Recommended premium rates released by the regulators – provides a guide to your industry rate
• The size of your wage roll
• Your claims cost history
• Claims Frequency
• The insurers own performance and profitability

The insurer adjusts the premium rate and will often: 

• Provide you with a discount if you have low claims numbers and costs over the prior 5 years 
• Apply a loading if you have high claim numbers and costs over the prior 5 years

In most cases your policy period will run for 12 months. The renewal date is normally determined by the date you commenced the policy.

What influences my premium calculation?

There are three key drivers that influence your premium:

• The wage roll of your business
• Industry Rates (these are aligned to the type of work your employees undertake and/or your business activity)
• Your claims experience (Claims History)

When and how do I pay my premium?

Your premium payment options will be agreed at the renewal of your policy. Instructions on how to pay your premium are detailed on your premium invoice.

Additionally Mercer Marsh Benefits can help arrange a premium funding option.

What happens if I can’t pay my premium in full?

If you are unable to pay your premium in full Mercer Marsh Benefits can assist you with obtaining a competitive premium funding quote.

The premium funding option allows you to take advantage of any discounts available, as the funder will pay your premium in full. You will then pay the funder in agreed monthly or quarterly instalments including interest.

What happens if I don't pay my premium?

If you don't pay your premium you could be fined and penalties may be applied to the amount in arrears. Your policy may also be cancelled leaving your employees without appropriate cover.

If you don't pay your premium on time a late payment penalty will be applied. Further, you will be deemed uninsured and will be liable for any claims costs that arise until all outstanding premium charges are paid in full. 

What are wage declarations?

Wage declarations provide the regulator/insurer with the required information to calculate Workers’ Compensation premiums.

Employers are required to provide estimated wages at the renewal of the policy and actual wages at the expiration of the policy.

A policy period runs for 12 months from the date the policy is first incepted.

Refer to the Wage Matrix to determine what wages to declare when completing your declaration.

When do I submit wage declarations?

Employers must lodge their estimated wages for the upcoming period of insurance to Mercer Marsh Benefits within 60 days of the policy renewal and actual wages 30 days post policy expiration.

How do I submit my wage declarations?

Completed estimated and actual wage declaration forms are to be submitted to Mercer Marsh Benefits as part of the policy renewal process.

What happens if I miss the due date for submitting my wage declarations?

If you don’t submit wage declarations, this may be viewed as ‘non-compliance’ and may leave you exposed to an insurer wage audit or fines.

What payments do you include in your wage declaration? Discover what components of employees’ remuneration are included in the wage declaration.

Click here to download the wage declaration matrix.

Who is covered under your policy? Discover the definitions of Workers and Contractors in Western Australia and who is covered under your policy or requires their own policy.

Who is a worker?

A worker is generally identified as an individual who is a staff member or employee of a business or entity who receives an income under a 'contract of service'.

Can contractors be considered workers?

If you, as the employer, engage a contractor/s to perform work you may still need to cover the contractor for Workers' Compensation depending on the nature of their engagement.

Contractors may operate as sole proprietors, partnerships, companies or through family trusts.

It is important to consider if any contractor may be deemed as a worker.

Contractors are most likely considered workers if:

• The employer (you) directs the contractor regarding work to be performed and the time and manner in which it must be performed
• Paid on time basis
• Tools and material supplied by the employer (you)
• Works only for a single employer (you)

Please note: A person may have been hired as a contractor and be a contractor for other purposes such as tax but still be a worker for the purpose of Workers’ Compensation Insurance. The status of a person for tax purposes bears no direct relationship to that person's status as a worker for Workers’ Compensation Insurance purposes.

If a worker works in multiple states, which state’s policy covers them?

If you have an employee who works in more than one state or territory, they will be covered by only one state’s policy. 

All states and territories use a state of connection to determine which policies will cover the employee for Workers’ Compensation. This applies irrespective of where the injury occurs. 

The state of connection test considers: 

• Test A: The territory or state in which the worker usually works in that employment
• Test B: If not Identified in (A), the territory or state in which the worker is usually based for the purpose of the employment 
• Test C: If can’t be identified through (A) or (B), the territory or state in which the employer’s principal place of business in Australia is located.

If the above tests don’t provide a state of connection, the employee will be covered by the state in which their injury occurred.

If an employee is working temporarily overseas or interstate, they will continue to be covered by the Workers’ Compensation, however, at 6 months an employer needs to reassess this arrangement to ensure ongoing cover or arrange alternative cover if the arrangement will continue at length. You can contact Mercer Marsh Benefits to discuss if additional coverage is required.

Has an employee had a workplace injury? Discover who will manage the claim and how to notify your insurer.

Who manages my policy and claims? 

WorkCover WA is the regulator of the Western Australian scheme and issues licenses to certified insurers who manage and control Workers’ Compensation policies and claims.

Licensed insurers are: Allianz, GIO, CGU, QBE, Zurich, Guild and WFI Insurance.

If your employee has a workplace injury, you must lodge the claim with the Licensed Insurer who has provided you with a policy. 

How and when do I lodge a Workers’ Compensation claim?

If you have had a workplace incident, you must lodge a claim with your insurer within 5 days of notification.

You need to lodge the claim with the insurer who holds your policy:  

Allianz 
CGU 
GIO 
QBE 
Zurich 
Guild
WFI Insurance

Do I have to pay an excess on claims?

There is no employer excess.

What is covered by the claim and how do the claims costs impact your premium? Discover the claims costs and how these impact your premium.

What expenses are covered under a Workers’ Compensation claim?

In the event a worker has a work place accident, the Workers’ Compensation policy will cover the following costs within the claim:

• Weekly compensation (Wages)
• Medical costs, for example doctor consultations, medication, x-rays
• Hospital costs (public and private)
• Rehabilitation costs, for occupational rehabilitation and return to work services
• Travelling expenses (including Ambulance)
• Investigations costs (medico legal reports and factual investigations)
• Lump sum payment for permanent impairment
• Common Law payments
• Death benefits and funeral expenses
• Legal costs

How do claims costs impact my premium?

There is no set formula of how claims costs impact your premium, the insurer assesses your risk based on the cost of your historical claims normally over 5 years and compares this to the premium you have paid for the same period. 

The insurer adjusts the premium payable based on your claim performance, including: 

• Providing you with a discount if you have low claims costs and claims frequency
• Applying a loading if you have high claims frequency and claims costs 

Has your employee had a serious injury? Discover the definition of a workplace and serious injury to determine if you need to report an injury/incident to WorkSafe.

What injuries are covered by the Workers’ Compensation policy?

Your policy covers employees who have sustained either a physical or psychological illness/injury whilst in the workplace.

Cover may also extend to a pre-existing condition, if employment has caused the condition to re-aggravate, worsen or deteriorate. 

What do I need to do in the event of a serious injury/incident? 

If there is a serious injury, incident or a death at the workplace, you need to complete two notifications as soon as you can (specifically within 24hrs of the event): 

• Worksafe WA, a body of WorkCoverWA (the regulator) 
• Notify your insurer of the incident / claim

Each notification is managed separately of each other with the insurer managing the injury and claim and Worksafe WA assessing the cause of the event and if corrective actions/fines are required.

What is a serious injury / incident?

A serious incident may not result in an injury that requires ongoing treatment. Below is a summary of what is considered a serious incident or injury: 

The types of injuries that must be reported are:

• A fracture of the skull, spine or pelvis;
• A fracture of any bone in the arm (other than in the wrists or hand) or 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; and
• Any injury other than the above which, in the opinion of a medical practitioner, is likely to prevent the employee from being able to work within 10 days of the day on which the injury occurred.

Types of diseases that must be reported are:

• Infectious diseases: tuberculosis, viral hepatitis, Legionnaires’ disease and HIV, where these diseases are contracted during work involving exposure to human blood products, body secretions, excretions or other material which may be a source of infection; and
• Occupational zoonoses: Q fever, anthrax, leptospiroses and brucellosis, where these diseases are contracted during work involving the handling of, or contact with, animals, animal hides, skins, wool, hair, carcases or animal waste products.

How do I notify a serious injury or incident?

You need to notify Worksafe WA, a body of WorkCoverWA (the regulator) of a serious injury or incident as soon as you can by calling 1800 678 198.

Worksafe WA may conduct an investigation.

What are the obligations of the injured employee and employer? Discover what you need to do when a worker has an injury.

Return to Work - Employer Obligations

An employer has a responsibility to ensure the health and safety of their employees, including: 

• Take all reasonable care to prevent injuries or illnesses occurring at work
• Attempt to resolve any health and safety issues as soon as possible
• Do everything reasonable to help an injured employee to return to work

If an employee has an injury, you as an employer are required to support the employee’s recovery and return to work, this includes: 

• Providing a safe place of work
• Reporting of an injury to your insurer in a timely manner
• Developing an appropriate return to work plan to support an injured employee’s recovery
• Forward all documentation to the insurer as received
• Ensure ongoing payments are made to the employee, either by you or the insurer, when there is an accepted claim
• Maintain contact with all parties

Providing Suitable Duties 

Suitable duties are provided when an employee is unable to immediately return to their normal pre-injury duties after an injury. Other terms such as suitable employment, suitable work, modified duties, light duties may also be used to describe suitable duties.

Your commitment to provide suitable duties is a fundamental part of any successful recovery at work strategy. When identifying suitable duties consideration needs to be given to:

• The nature of the worker’s incapacity – this is identified in their medical certificate
• The worker’s age, education, skills and work experience
• Any injury management plan in place

Once suitable duties have been identified, a return to work plan / program is created. The return to work plan outlines the duties being completed and the medical restrictions to ensure clarity for all involved. 

Need Support?

If you need assistance with developing a return to work plan for your employee or with a complex claim, please contact Mercer Marsh Benefits – we can support you with either strategic advice or on the ground with our in-house rehabilitation team - Recovre has consultants across Australia (including regionally). We can support you with a single claim or the injury prevention and management across your program. 

Return to Work – Employee’s Obligations

Like Employers, Employees also have obligations both prior to and following a workplace injury/illness, this includes: 

• Take all reasonable care to prevent injuries or illnesses occurring at work
• Report any health and safety concerns immediately
• Participate in the return to work process if an injury occurs

Return to work and Recovery

An injured employee’s role is to focus on their recovery and return to work, there are a number of important aspects of this, including: 

• Report any injury as soon as the injury happens
• Provide copies of Medical Certificates (also known as Certificates of Capacity) in a timely fashion
• Attend medical and other appointments arranged by your treating doctor, or where directed by the insurer such as independent medical specialist appointments
• If unable to attend an appointment, take reasonable steps to make an alternative appointment as soon as possible
• Communicate with all parties and reply to reasonable requests
• Carry out agreed actions to the best of their ability, as outlined in the Return to Work Plan/Program
• Immediately inform the Injury Management Coordinator and/or line manager of any difficulties carrying out the Return to Work Plan/Program
• If referred to a workplace rehabilitation provider, actively participate in all aspects of the service and work cooperatively with the service provider
• Advise of any changes in contact details
• Advise treating doctor and other treatment providers of any changes
• Book medical appointments where possible outside of return to work hours
• Failure to meet obligations, can lead to non-compliance and/or penalties.

Rehabilitation Services

Rehabilitation services are engaged to support an injured employee through the lifecycle of the claim and recovery. This includes the return to work with the same employer or if it is identified, an alternative employer. Examples of the services provided include:  

• Return to Work support
• Suitable Duties identification
• Alternative role identification – vocational / functional assessments
• Job Seeking support

You can contact Mercer Marsh Benefits if you believe you need rehabilitation support on your claims.

Can a worker be dismissed while they have a Workers’ Compensation claim?

An employer is required to support an injured employee’s recovery and return to work following a workplace injury.

An employer cannot dismiss an injured employee from employment within 52 weeks of the injury occurring.

If an employer is unable to keep an employee’s position open for the full 52 weeks, the employer is required to notify the worker and WorkCoverWA (the regulator) of the intention to dismiss the injured employee. A 15G notice must be issued to prevent WorkCoverWA penalty and a worker must be given 28 days’ notice.

It is important to discuss any dismissal with your legal advisor, the insurer and Mercer Marsh Benefits prior to taking any action as you will need to ensure you have met your obligations and understand any financial impact. Fines/penalties could apply if you do not meet your obligations.

What is an injured employee paid? Discover how to calculate a wage entitlement and when this entitlement will change.

How are wages entitlements calculated?

If there is an accepted claim and an incapacity for work, an injured employee is entitled to receive weekly compensation for lost earnings.

To calculate a worker’s entitlement to weekly compensation, the 12 months of earnings prior to the injury are assessed. Employers need to provide the insurer with the required payroll information to calculate the worker’s entitlement.

If the worker hasn't been employed for 12 months prior to the injury, the historical earnings from the date their employment commenced are assessed.

There are two methods for calculating the weekly entitlement of a worker in in WA:

Industry Award / EBA - Employees under an industry award or agreement have the following considered when calculating their weekly entitlement:

• Weekly Award Payments
• Regular over award payments
• Average of over time for the prior 13 weeks

No Industry Award / EBA - Employees without an award or EBA, have the following considered when calculating their weekly entitlement:

• Average of 12 previous months earnings
• Includes overtime, bonuses, allowances
• If employed less than 12 months, it will be considered from time employment commenced

There is a maximum weekly entitlement in WA and this is reviewed annually on the first of July. The current maximum rate is $2645.90 per week (correct as at 01/07/2020).

To confirm the current maximum weekly compensation rate click here.

Does the wage entitlement remain the same during the claim?

The entitlement to an injured employee’s benefit can change during a claim, there are two key factors that can impact how may an employee is paid under Workers’ Compensation: 

• The length of the claim
• A worker increases their hours of working and/or earnings

The amount paid to the injured employee cannot exceed the weekly maximum rate advised by your insurer.

How are entitlements to weekly benefits reviewed?

An insurer regularly reviews a worker’s entitlement to weekly compensation and the following could alter an entitlement:

• Injury or incapacity resolution
• Changes in capacity for work
• Changes in the relationship between the injury and employment
• Duration of the claim
• Compliance with injury management
• The employee moves overseas

The insurer will advise you if the weekly entitlement changes or ceases and the reasoning.

Are employees covered whilst travelling to and from work?

No, there is no cover for injuries sustained while travelling to and from work.

Claims maybe covered in situations when travel is required that is outside of their usual role.

If you would like to ensure your employees are covered for travel to and from work, please contact Mercer Marsh Benefits who will be able to assist you with obtaining a separate quote of insurance to cover your employees’ travel to and from work.

If a worker sustains an injury while on a recess/break, is this covered under Workers’ Compensation?

If an injury occurs while an employee is on an authorised recess or break (i.e. lunch breaks), the injury is covered by your Workers’ Compensation insurance policy.

If an injury is sustained while on a break off site, coverage will depend on the factual circumstances and be determined by the insurer.

If a worker injures themselves whilst travelling for work, is this covered under Workers’ Compensation?

An employee is covered under the policy for temporary interstate and overseas travel; claims are assessed on individual circumstances to ensure employment is a contributing factor.

If an employee is travelling for greater than 6 months, insurance arrangements may need to be reviewed to ensure continued adequacy of cover.

Also refer to the state of connection information in worker definitions for more information click here.

What happens if an employee has an injury and/or claim and is approaching or has reached retirement age?

If your employee is approaching or has reached retirement age, and sustains an injury, there is no change in their weekly compensation entitlement.

Can an employee be dismissed while they have a workers’ compensation claim?

An employer is required to support an injured employee’s recovery and return to work following a workplace injury.

An employer cannot dismiss an injured employee from employment within 52 weeks of the injury occurring.

If an employer is unable to keep an employee’s position open for the full 52 weeks, the employer is required to notify the worker and WorkCoverWA (the regulator) of the intention to dismiss the injured employee. A 15G notice must be issued to prevent WorkCoverWA penalty and a worker must be given 28 days’ notice.

It is important to discuss any dismissal with your legal advisor, the insurer and Mercer Marsh Benefits prior to taking any action as you will need to ensure you have met your obligations and understand any financial impact. Fines/penalties could apply if you do not meet your obligations.