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Workers' compensation - common law insurance
An amendment Bill will be brought to Parliament early in 2012 to clarify the workers' compensation common law insurance obligations of employers and insurers.
Amendments to the Workers’ Compensation and Injury Management Act 1981 (the Act) implemented in October 2011 inadvertently created legal uncertainty as to an employer’s common law insurance obligation for people who are deemed their workers in some circumstances.
In order to restore certainty the proposed amendments will:
- Make clear that the requirement to insure a worker for common law damages does not include a person who is the employer’s worker only because of section 175 or section 175AA of the Act (deemed employers under the Act).
- Preserve the indemnity in public liability policies for deemed employers from 1 October 2011 to ensure those policies respond to common law actions against deemed employers.
- Enable regulations to set a specified or minimum limit of indemnity for common law liabilities arising from a single event, and other standard conditions and exclusions.
To avoid any doubt about the legal status of insurance arrangements, the amendments will apply retrospectively from 1 October 2011.
Download the Workers’ Compensation - Common Law Insurance statement for more information.
For further information on the planned amendments please contact Mr Chris White, General Manager Legislation and Scheme Information at WorkCover WA on 9388 5512.
 New workers' compensation laws proclaimed
The Governor in the Executive Council proclaimed 1 October 2011 for the commencement of the first stage of the Workers' Compensation and Injury Management Amendment Act 2011 (the Act), following its Royal Assent on 31 August 2011. The first stage:
- removes all aged based limits on workers' compensation entitlements
- extends the safety net arrangement for workers awarded common law damages against uninsured employers
- includes various amendments of an administrative nature.
The changes to the dispute resolution process were proclaimed on 1 December 2011. For information, See the Conciliation & Arbitration section or download the Conciliation and Arbitration Services Information Session Presentation November 2011 (PDF - 890kb).
The calculation of weekly payments of compensation provisions in sections 123(2) to (7) of the Act have not been proclaimed, at this stage. This decision was based upon concerns that the proposed amendments could result in unintended detriment to some workers.
The amendments relating to weekly payments were developed as a means to improve the efficiency of the scheme by avoiding disputes. In consultation on the amendments, WorkCover WA advised stakeholders that there was no intention to materially change compensation entitlements. It is now clear that the potential impact of the amendments is inconsistent with this position. The relevant provisions are under review with the intention of rectifying this matter.
 Fact Sheets
Legislative review process
The amendments were made in response to WorkCover WA's 2009 review of the Workers' Compensation and Injury Management Act 1981. Download a copy of the Legislative Review 2009 - Full Report (PDF - 1.7MB).
Extensive consultation was undertaken as part of the review process and throughout the drafting of legislative amendments that arose as a result.
A stakeholder reference group provided invaluable advice. This group included employers and unions as well as other key participants in the scheme. It comprised representatives from:
- Australian Medical Association (WA)
- Chamber of Commerce and Industry of WA
- Chamber of Minerals and Energy
- Department of Commerce
- Housing Industry Association
- Insurance Council of Australia
- National Insurance Brokers Association of WA
- Self Insurers Association
- The Law Society of WA
- Unions WA
- WorkCover WA
An additional group was convened specifically to consider the dispute resolution arrangements. It included a cross section of stakeholders representing workers', employers', and insurers' interests.
The review recommended a two stage program of reforms to WA's workers' compensation.
Stage One includes the amendments passed on 17 August 2011.
Stage Two involves the development of a new workers' compensation statute based on contemporary language and drafting conventions. Work on stage two will commence later in 2011.
For more information
If you require further information about the legislative review and the amendments to the Workers' Compensation and Injury Management Act 1981, please contact Chris White on 9388 5512 or email Communications and Education.
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