Workers’ compensation claims for psychological injuries have significantly increased. In the four years up to 2022, Work Safe Queensland reported a 92% increase in accepted psychological injury claims and a further increase in the subsequent year. It is therefore critical for local governments to proactively respond to these claims and to comply with the recently enhanced rehabilitation and return to work obligations.
Increased penalties for failing to assist with rehabilitation
Under the Workers’ Compensation and Rehabilitation Act 2003 (Qld) (WCRA), employers have a duty to take all ‘reasonable steps’ to assist or provide the worker with rehabilitation (including necessary and reasonable suitable duties programs) and to cooperate with the insurer to provide rehabilitation. The maximum penalty for non-compliance was increased last year to $83,450.
If an employer believes that a suitable duties program is not practicable, it must produce written evidence to the insurer of this or it may incur a penalty of $16,690 (prior to 23 August 2024 there was no penalty). If the insurer is not satisfied with the employer’s evidence, it must provide the employer with reasons for that opinion and ‘reasonable opportunity’ for further submissions.
Responding to claims
If a worker has made a claim for psychiatric injury (or there are signs of one emerging), employers should take appropriate steps to:
- ensure adequate support is provided (regular check ins, employee assistance programs, allowing the worker to take time off);
- investigate and document the claim circumstances; and
- if there are concerns about the veracity of the claim, respond to the claim at an early stage by gathering all relevant information and documents and providing that to the insurer with submissions outlining the employer’s version of events. Often a claim is contestable on the basis that the injury was caused by the employer’s ‘reasonable management action’.
Key takeaways
The growing number of workers’ compensation claims for psychiatric injury makes it increasingly important for employers to be proactive about contesting claims at an early stage, including preparing responsive submissions to the insurer. If a worker’s claim is accepted, employers now have enhanced obligations to take reasonable steps in providing rehabilitation to the injured worker.
We have assisted many government bodies to respond to contentious workers’ compensation claims. For detailed guidance on the enhanced rehabilitation obligations and managing claims, please reach out to our Insurance and Corporate Risk team.
