What are the employer's obligations regarding workers compensation insurance?

Under the Workers Rehabilitation and Compensation Act of the Northern Territory, employers must hold a workers compensation insurance policy with an approved insurer if:

• They employ a person who provides work or service for them, who does not provide the employer with an Australian Business Number (ABN) in writing; or
• The employer is based outside of the Northern Territory and has persons providing work or service for the employer within the Northern Territory and those persons do not provide the employer with an ABN in writing.

How are workers compensation premiums calculated?

Approved insurers determine the rates and premiums charged to the employer. This is based on the industry type, claims history, payroll and number of employees. A good claims record in conjunction with good workplace safety practices may influence the premium to be paid.

What constitutes wages, salaries or remuneration for the purposes of workers compensation premium calculations?

The prescribed Employers Indemnity Policy in Schedule 2 of the Workers Rehabilitation and Compensation Act provides that premiums shall be regulated by the amount of wages, salaries and all other forms of remuneration paid or allowed to workers during each period of indemnity. Condition 11 gives the insurer the right to inspect wage records.

To help ensure a consistent interpretation for employers and insurers the Work Health Authority provides the following guideline:

Wages, Salaries and Remuneration includes:

Wages, salary, overtime, shift and other allowances, over-award payments, bonuses, commissions, payments for public and annual holidays (including loadings), payments for sick leave, payments for long service leave (including a lump sum payment instead of taking long service leave) and including but not limited to:

• The market value of board and lodging and electricity provided by the employer for the worker.
• The total value of any salary sacrificed amounts, for example motor vehicles (including fringe benefits applicable to these salary sacrifices).
• Superannuation contributions that would be payable to a worker as wages or salary if the worker so elected (e.g. salary sacrificed superannuation).

The following are not usually included:

• Workers compensation payments made under the Act.
• Maternity or paternity leave payments, including payments under the Australian Government's Paid Parental Leave Scheme.
• Superannuation that is paid by employers under the Compulsory Superannuation Guarantee Levy, including contributions made by the employer over and above the compulsory levy.
• Any and all payments for retirement, redundancy or termination.
• The value of staff discounts.
• The value of costs reimbursed to workers that were incurred in earning their income.

These are not prescribed by the legislation, but are simply guides for insurers and employers.

Do I have to register as an employer with NT WorkSafe for the purposes of workers compensation?

In the Northern Territory, employers do not register as an employer with NT WorkSafe. However as an employer you are required to have workers compensation insurance cover with one of the NT approved worker's compensation insurers.

Your worker's compensation insurer will advise NT WorkSafe of all new and renewed workers compensation policies and this will include your details.

What are the employers obligations regarding the workers compensation?

When a worker is injured and seeks to make a workers compensation claim, an employer should:

• Make a compensation claim form available to the worker.
• Forward the worker's claim form to the insurer within three (3) working days of receiving it from the worker.
• If the insurer accepts liability for the workers claim, then weekly payments of compensation must be made by the employer commencing within three (3) working days of the decision to accept the claim. These benefits are payable from the date of first incapacity.
• If the insurer defers liability, weekly payments of compensation must commence within three (3) working days of that decision. These payments are to continue for up to eight (8) weeks within which time the insurer will either accept or reject liability. If the claim is subsequently accepted, the compensation owing must be offset by any amounts paid during the period of deferral. if the claim is rejected the deferral payment will cease. This payment is not recoverable from the injured worker.
• Take all reasonable steps to provide the injured worker with suitable employment; and so far as is practicable, participate in efforts to retrain the worker.

How can I assist my worker to return to work and be productive?

The employer must assist with any rehabilitation program and take all reasonable steps to provide suitable employment.

If the employer is unable to provide the worker with suitable employment, they, in consultation with the insurer, must refer the worker to an Alternative Employer Incentive Scheme.

Is there a requirement for an employer to have a Return to Work Coordinator?

No there is no requirement under the Northern Territory's legislation, however, the employer must assist with any rehabilitation program and take all reasonable steps to provide suitable employment.

If the employer is unable to provide the worker with suitable employment, then, in consultation with the insurer, the employer must refer the worker to the Alternative Employer Incentive Scheme.

NT WorkSafe does encourage employers to make available (resources permitting) coordinators that act as a liaison between the injured worker, management, treating doctors, vocational providers and insurers. Rehabilitation works much more effectively when employers actively participate in the worker's recovery, and if all parties involved in the process work together.