Who is an employer, and the employer's obligations

An employer is someone who hires workers under a contract. A contract can be made either verbally, in writing or implied and applies to full time, part time and casual workers.

A 'contract of service' is where the employer directly engages a worker in employment. Most employment contracts are made under these circumstances.

A 'contract for service'  is where an individual performs work for the principal and personally does part or all the work. A person who is employed under a 'contract for service' and works on a regular and systematic basis is deemed to be a worker.

Company director obligations

Pty Ltd companies must hold a current workers compensation policy if they have one or more workers. Workers include any individual who works under a contract of service. This means that while a business remains a registered legal entity with an appointed office holder, that office holder must maintain a workers compensation insurance policy with an approved insurer.

Employers seeking to re-assess their trading activity should seek legal advice to make sure they continue to meet their obligations for workers' compensation insurance under the Act.

For further information see the Workers Compensation Act 1951

General obligations for employers

Employers’ responsibilities include:

  • holding a current workers compensation insurance policy for all their workers in the ACT
  • complying with their insurer's injury management program
  • displaying a notice with the requirements under the Act for making compensation claims, including the name of the insurer and current insurance policy details
  • establishing and displaying a written return to work program in consultation with workers, an approved rehabilitation provider, nominated Doctor and, where applicable, relevant unions
  • appoint and maintain a return-to-work coordinator
  • providing a register of injuries that is accessible to all workers
  • providing specific information required by the insurer including yearly wage reports

There are strict penalties for operating a business in the ACT without an appropriate level of workers' compensation insurance. As well as on the spot fines, you will have to pay the quoted insurance premium for the period(s) your business was not covered and you could also be liable to pay double the insurance premium avoided for, up to a maximum, of five years.

Workers compensation in the ACT is a privately underwritten and market driven scheme. Insurers apply to WorkSafe ACT directly to become approved Insurers to offer workers compensation insurance in the ACT. If you require a policy, you should contact an approved insurer directly.

For more information and a list of current approved insurers, visit the Workers Compensation Insurer Approval page.

Obligations when handling a claim

When a worker is injured and registers a worker’s compensation claim, an employer must:

  • make compensation claim forms available to the injured worker
  • record the date of the notice of injury in the workplace register of injuries
  • notify the insurer of an injury within 48 hours of being made aware of the workplace injury. Note - if notification is provided orally the employer must give notice in writing/electronic form within 3 days after giving notice orally

If the employer does not give notice within 48 hours, the employer is directly liable for weekly compensation from the end of the notification time until the notice is given to the insurer and cannot be reimbursed by the insurer for compensation paid prior to the date of notification. An employer must:

  • forward the worker's claim form to the insurer within seven days of receiving the completed claim form from the injured worker
  • participate in the development and maintenance of the insurer's personal injury plan for the injured worker
  • provide vocational rehabilitation
  • make sure that all payments due to the worker received from the insurer are immediately paid to the injured worker
  • provide suitable employment for full-time, part-time, and casual workers, who has been totally or partially incapacitated and where a request for work is received within six months of the injury
  • provide suitable employment for contract workers, who has been totally or partially incapacitated and where a request for work is received within the defined period of the injury.

Premium costs

Many factors are considered by approved insurers when calculating workers compensation insurance premiums, including: industry type, claims history, wages bill and number of employees. A good claims record combined with good work health and safety practices can influence the organisation’s annual workers compensation premiums. Insurers are required to disclose the default insurance fund levy on all premium notices.

Exempt employers

Employers with the resources to fund any workers compensation liability imposed on them may apply to WorkSafe ACT to be a self-insurer.

Injury register

The register of injuries must be kept by the employer on site where it is easily accessible to workers. The register, which can be in hard copy or electronic version, records every injury that occurs in the workplace, regardless of whether a claim is made. Notification of an injury must be made as soon as possible.

A worker must inform their employer if the worker has sustained a workplace injury as soon as possible after being injured. Recording details of the injury in the register is taken to be notice of the injury given to the employer by the injured worker.

The register of injuries should include the following:

  • company or business registered name and address
  • time, date and place where injury occurred
  • injured worker name, address and date of birth
  • details of the accident and injury/injuries sustained
  • treatment given (if any)
  • witness details including
  • person registering the injury

Injury notice

Injury notice does not apply to approved self-insurers

The employer must give a written injury notice to the insurer within 48 hours after becoming aware that a worker has received a workplace injury.

If the employer does not notify the insurer within 48 hours of a workplace injury  being reported, the employer is liable to pay the injured worker weekly compensation until the employer reports the injury to the insurer. The employer cannot recover any payments from the insurer for the period between the employer being notified of the injury and the employer notifying the insurer.

Below is information that may be required by the insurer with a notification of injury.

Employer details

  • Workers Compensation insurance policy number
  • Employer ABN
  • Registered name
  • Address
  • Name of authorised person
  • Phone number
  • Email for authorised person
  • Fax number (if applicable)

Injured worker details

  • Surname
  • Given names
  • Gender
  • Address
  • Suburb
  • Post code
  • Contact phone number
  • Mobile phone number
  • Date of birth
  • Occupation

Accident/injury details

  • Injury/disease suffered
  • Body part affected by injury/disease
  • Cause of the injury
  • Date of the injury
  • Time of the injury
  • Exact location injury occurred

Details of nominated doctor treating injured worker

  • Name of medical practice
  • Address of medical practice
  • Name of doctor
  • Phone number
  • Fax number

Details of treatment

  • Person providing first aid treatment
  • Referrals for further treatment

Witness details

  • Name
  • Position held with the business
  • Phone number
  • Fax number
  • Mobile phone number

Commonwealth JobKeeper payments

Advice is available on how the Commonwealth's JobKeeper payments affect legislation. Refer to this information for advice about wages declaration for workers' compensation premiums and earnings for the purposes of weekly compensation payments.

ACT Workers Compensation Scheme: Commonwealth Jobkeeper Payments (PDF 183KB)

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