You must have workers’ compensation insurance for anyone you employ who the legislation defines as a ‘worker’, including cover for claims at common law.
By keeping a current workers’ compensation insurance policy and having an injury management system in place, you will ensure compliance with the Workers’ Compensation and Injury Management Act 1981.
See the Getting an insurance policy section for more details on how to cover your workers and your business against a workplace injury.Definition of a worker
- full-time workers on a wage or salary
- part-time, casual and seasonal workers
- workers on commission
- piece workers
- working directors (companies 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 subcontractors may also be defined as ‘workers’, depending on the circumstances of their working arrangement
- worker receiving ‘payment in kind’.
- full-time and part-time workers
- casual workers
- seasonal and piece workers
- workers on salary or wages
- workers supervised and controlled by an employer
- workers who may be fired by an employer
- workers who work for only one employer
- workers with set hours of work.
- are paid on piece rates, hourly rates or per job
- work for the employer on a ‘one-off’ or per job basis
- do not have set hours of work
- work for more than one employer
- work unsupervised
- pay 20 per cent prescribed payments (sub-contractor’s tax)
- are covered by an industrial award or agreement.
For more information, see ‘avoidance arrangements’ in the Costs of non-compliance section.
You will be liable for the costs of a claim if a family member who is a worker suffers a compensable injury in the course of their employment with you. As such, you must have workers’ compensation insurance covering your liability.
Go to Contractors & subcontractors.
Go to Working Directors.
The workers’ compensation premium payable, and entitlements available, depend on the worker’s ‘state of connection’.
Go to the fact sheet Who covers interstate employees for workers’ compensation.