Workers compensation is a statutory insurance scheme providing benefits to workers who suffer work-related injury or illness.
Legislation: State/Territory Workers Compensation Acts | Category: Insurance & Compensation
What is Workers Compensation?
Workers compensation is a statutory insurance scheme that provides benefits to workers who suffer injury or illness arising out of or in the course of their employment. Each state and territory has its own workers compensation legislation and scheme, with different rules, benefits, and processes. There is also a Commonwealth scheme (Comcare) for federal government employees.
Employers must hold workers compensation insurance (or be self-insured) covering all workers. Benefits typically include medical expenses, income replacement during incapacity, rehabilitation support, and lump sum payments for permanent impairment. In most cases, workers cannot sue their employer for workplace injuries.
Key Compliance Points for Employers
- Workers compensation insurance is compulsory — significant penalties apply for non-compliance
- Premiums are based on industry, wages paid, and claims history
- Employers have obligations to notify insurers of injuries, maintain employment, and assist return to work
- Psychological injury claims are increasing and often costly
- Return to work programs benefit both the worker and the employer through reduced premiums and retained skills
Frequently Asked Questions
What is Workers Compensation?
Workers compensation is a statutory insurance scheme providing benefits to workers who suffer work-related injury or illness.
Why is Workers Compensation important for employers?
Understanding workers compensation helps employers comply with Australian employment law, avoid penalties, and maintain fair workplace practices.
