Newsletter
1
Workers compensation – creating better workplaces
2015 Workers Compensation Newsletter – Q2
the Foundation is undertaking to improve
outcomes for all parties.
Our feature article on fatigue management;
aligns with a broader thought leadership
series we are facilitating, providing some
practical ways to help you manage not only
your own, but also your team’s fatigue levels.
Improving your fitness level is one of
the strategies suggested in our feature
article. Here at QBE we have a number
of teams participating in the Global
Corporate Challenge, and are effectively
‘walking around the world.’ Not only has
this provided some friendly competition
amongst the teams, but more importantly,
is helping us create a culture of health right
across our business.
Introduction
from Jason Hammond
Dear Valued Customer
Welcome to our Workers Compensation
newsletter. This edition includes a range
of interesting articles focussing on key
legislative changes and the impact they
will have, as well as the rise of health and
wellbeing programs in our workplaces.
As a board member of the Personal Injury
Foundation (PIEF), promoting, enriching
and enhancing the range and depth of
personal injury management skills available
within our industry is very important to me.
The upcoming Motivational Interaction
workshops being held across Australia later
this year, which I would encourage you
to attend, are just one example of work
Also in this edition you will find
• Commentary from one of our legal
panel providers around the impacts of
a recent Federal Court decision
• An overview of the long awaited
changes to the Northern Territory’s
Workers Compensation legislation
• An update from our team in Canberra
and their investment in creating a
healthier workplace
We hope you enjoy the newsletter.
Regards
Jason Hammond
General Manager
Workers Compensation
Would you like to receive
a digital version of QBE’s quarterly newsletter?
Please visit our website to subscribe – www.qbe.com.au/subscribe
In this edition:
Is fatigue preventable?
2
NSW workers to accrue
annual leave whilst on
Workers Compensation
3
Legislative changes
and insights
4
People5
Motivational interactions
workshops6
Our community
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2
QBE Workers Compensation
Is fatigue
preventable?
Article by
John Toomey,
CEO Global Wellness
Do you ever sit at your desk, yawning so hard you fear the
corners of your mouth might tear, wondering why it is you feel
so tired? Have you ever sat in a meeting or seminar and felt
yourself struggling to remain present, nodding off as you lose
all control over your eyelids?
This is an all too familiar scenario. In an office setting, it is
unlikely anyone will become injured. Productivity will suffer,
but perhaps not safety. But what happens when a person is
operating a crane or a forklift? Lost productivity is a problem,
but death and injury are catastrophic.
If you have fatigue at the desks, you will have it on the
factory floor.
Fatigue has become a hot topic of discussion in the safety
field over the past decade. Drowsy workers in dangerous
environments are at risk and sometimes, they are a hazard.
Take for example a drowsy truck driver at the wheel of a truck
weighing several tonnes travelling at 90kph.
There are many issues. From the productivity perspective,
there is the potential for major interruption, huge costs and
lost production. A fatigued worker produces less, whether it
involves a manual task or sitting at a computer. From a human
perspective, a family can be destroyed in the blink of an eye.
When people are fatigued they can make bad decisions. This
can lead to costly mistakes and it can lead to death. It can
range from being a minor disturbance to a crippling setback.
Fatigue is not just an occasional thing either. One of the major
reasons GP’s report for people attending their surgery is to get
help with their fatigue. And of course, this is a huge cost to the
public purse.
So why do people feel fatigued? Is it just a lack of quality
sleep? Many think so and companies have spent millions of
dollars trying to work out rosters that give employees more
than enough time to get adequate sleep. Education classes
have been run all over the country teaching workers about
quality sleep and how to achieve it.
How much money have governments spent on warning signs
on highways telling us to take a “Power nap”?
Having come out of the Physical Education profession, I
certainly have other viewpoints. In fact, fitness trainers are
constantly seeking to train a person to just the right amount
of fatigue to bring about an adaptation in one of the body’s
systems. Too much fatigue leads to over training and a loss
of time as recovery takes much longer. Not enough fatigue
means that the program is not optimum.
There are hundreds of Physical Education Institutions all
around the globe doing research on fatigue every year. Over
the years we have learned that there are many things that can
cause a worker to feel fatigued. Certainly lack of quality sleep
is one, but it is just one among many.
We have also learned that a variety of other factors make a
huge contribution to fatigue, to a person’s energy levels. Some
of these include:
• Dehydration: Poor hydration leads to lower blood
volumes and circulation deficiencies, which leads to poor
oxygen flow to the brain.
• High sugar intake: This leads to wild fluctuations in blood
sugar. When blood sugar is too low, a person feels very
weak and without energy.
• Acidity in the body: This can lead to poor oxygenation
of the blood, which then leads to fatigue on many levels.
The brain is the first to feel the impact. This can be caused
by poor diet, stress, snoring, sleep apnoea and other
deficiencies in breathing mechanics.
• Poor fitness: This reduces the body’s capacity for work,
thus lesser workloads create fatigue.
• Mental resistance: This often occurs when a person is
at work but wishing they could be somewhere else. Put
simply, this creates an internal “tug-of-war” that has the
person fighting against themselves. This can be incredibly
fatiguing.
• Poor gut health: Low levels of aerobic bacteria in the gut
can lead to poor oxygenation of the body. It can also lead
to a proliferation of anaerobic elements including “bad”
bacteria, viruses, funguses and even parasites. All of these
can leave a person feeling very drained.
• Poor mineral balance: Low iron and low zinc levels can
leave a person feeling like they have chronic fatigue.
• Worry and stress: Similar to mental resistance, can
lead to low moods, poor sleep, self-opposing and
significant fatigue.
All of these things can be remedied with an education
program, some simple strategies and enough inspiration for
change. When people are empowered and given a sound
understanding of these factors, they get very interested and
take on the change. They also begin supporting each other to
change. This in itself brings a bright new shift in the culture of
a workplace.
Positive Education has powerful flow on effects and does
impact the bottom line of your business from many angles.
About the author
John Toomey is CEO and the Fatigue Professor of Global
Wellness, providing inspirational and educational seminars
on fatigue prevention in the workplace. As well as supporting
people to create health and wellbeing in all parts of their lives.
Newsletter
NSW workers to
accrue annual
leave whilst
on Workers
Compensation
This decision was appealed to the Full Bench of the Federal
Court on 5 June 2015. A key component of the decision was
an examination of what was meant by “permitted” or more
precisely “permitted by” by Section 130(2) of the Fair Work Act.
The Judges determined that permitted should be constructed
as a synonym for “allowed”. They consider it would be odd if
it was the Parliament’s intention to confine the operation of
Section 130(2) to compensation laws which actually created or
conferred entitlements to leave.
Since the introduction of the Fair Work Act 2009, Section
130(1) has operated so injured employees in receipt of Workers
Compensation payments are prevented from accruing or
taking any leave entitlements.
The Full Bench concluded the purpose of Section 130(2)
was to enable employees who were absent from work
and in receipt of compensation to retain their entitlements
to leave over the same period as long as that course is
sanctioned, condoned or countenanced by the relevant
compensation laws.
Article by Michael Gillis,
Partner | Gillis Delaney Lawyers
However, a recent decision in the Federal Circuit Court in
NSW Nurses and Midwives Association v Anglican Care [2014]
FCCA 2580 has determined a liberal approach to statutory
interpretation is appropriate when dealing with legislation
aimed at protecting the safety of workers and providing for
compensation to injured workers.
The Full Bench noted that a worker’s entitlement to accrue
annual leave was not removed by Section 130 because she
was permitted by Section 49 of the Workers Compensation
Act 1987 to accrue annual leave over an entire period she was
absent from work and in receipt of compensation.
Her Honour Judge Emmett concluded as Section 49 of the
WC Act does not prevent an employee from receiving both
annual leave and Workers Compensation payments (and
indeed expressly provides that an employee can receive both
workers compensation and accrued leave).
We note this is a fundamental and important determination.
Employers should now be aware that the decision of the
Full Federal Court means that employees will accrue annual
leave whilst their injured workers are in receipt of weekly
compensation payments. The decision demonstrates in
NSW employers have legislative obligations to maintain the
employment of injured workers while attempting to provide
suitable duties and rehabilitation and whilst a worker is in
receipt of weekly compensation benefits the financial impost
of annual leave entitlements continues to accrue.
Her Honour says Section 49 of the WC Act “allows” or
“permits” the receipt of both. The Court determined that
Anglican Care was required to pay Ms Copas an amount that
reflected the accrual of annual leave owed to her under the
Fair Work Act during the period from 1 January 2010 to 23
May 2013 whilst she was on workers compensation benefits.
This is the first judicial decision on the interpretation of the
effect of Section 130 of the Fair Work Act 2009.
Gillis and Delaney are members of the
QBE Legal Panel and can be contacted
directly if you have any questions in
relation to this matter.
Tel: +61 2 9394 1144 | Fax: +61 2 9394 1100 |
www.gdlaw.com.au
Employees should be aware this decision of the Federal Circuit
Court means New South Wales employers should accrue
annual leave for their injured workers who are not at work
when in receipt of workers compensation payments.
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4
QBE Workers Compensation
Legislative changes
and insights
Northern Territory Return to
Work Act
2. Introduction of ‘Structured Settlements’.
3. Negotiated Settlements – post 104 weeks and pre 104 weeks.
4. Advance ‘Medical and Other Treatment’ payment option.
5. NT to adopt modified version of AMA 5 Guides to
Permanent Impairment Assessments.
6. Introduction of a clear definition of ‘fraud’ with increased
penalties and recovery rights.
Article by Colin Chilcott,
QBE State Manager, NT
7. Faster access to Nominal Insurer
The first tranche of the long-awaited amendments to the
Northern Territory’s Workers Compensation Legislation will be
effective from 1 July 2015.
NSW experience rated
employer reforms
Amendments to the legislation include; a change of name
from the Workers Rehabilitation and Compensation Act to the
Return to Work Act. The amendments aim to encourage a fair,
affordable and efficient workers compensation scheme.
Below are some of the significant changes to be implemented
from 1 July 2015.
1. Definition of Worker reverts to the previous position that
only PAYG taxpayers are workers under the Act.
WorkCover NSW recently announced policy reforms for
experience rated employers (medium and large employers) to
help make it easier to do business in NSW.
This is the most significant reform the state has seen in
relation to premium rating methodology, which has remained
largely unchanged since 1987. Medium and large employers
currently make up 4% of employers in NSW and cover 75% of
workers in NSW.
The reforms have been designed to:
2. Working Directors must be on the Company payroll.
• deliver easy to understand premium processes
3. Weekly Compensation Entitlements for workers with
Relevant Whole Person Impairment of less than 15% WPI
is limited to an aggregate period of 260 weeks.
• increase sustainability and certainty
4. For workers with a Relevant Whole Person Impairment
of greater than 15% WPI, their entitlement to weekly
compensation continues.
• keep employers better connected with injured workers.
5. Relevant Whole Person Impairment excludes any
impairment for any psychiatric sequelae for a physical injury.
The new premium model will include an Employer Safety
Incentive (ESI) together with an Employer Safety Reward
(ESR). This will be expanded to all employers in the scheme.
6. New definition and method of calculating a worker’s
normal weekly earnings (n.w.e.), previous definitions of
n.w.e. and components of same no longer apply. A worker’s
n.w.e. is the gross remuneration paid to the worker by the
employer liable to compensate the worker and any other
employer for whom the worker ordinarily works.
7. Normal Weekly Earnings post 26 weeks to be capped at
250% of Average Weekly Earnings (AWE).
8. Value of non-cash benefits capped at $496 per week
(indexed annually) are only included in a worker’s n.w.e.
if that worker is not a drive in / drive out or fly in / fly
out worker.
9. Weekly compensation payments to those injured at 66.5
years to increase to 104 weeks.
10.Increase in funeral costs and lump sum death benefit to
364 times average weekly earnings, with requirement to
provide counselling services to dependents.
11. Heart attacks and strokes type injury are excluded unless
worker’s employment has materially contributed to the injury.
12.Approved insurers to contribute to operating costs of
NT WorkSafe.
Significant changes are expected to pass in
August 2015 and are likely to be effective
from October 2015.
1. Removal of journey cover for injuries sustained while
worker travelling to and from work.
• reduce red tape
Safety first
Introduction of true risk rating
The model will introduce three years’ claim history for the
purpose of risk assessment, which will be used for both renewal
and the actual wages adjustment at the end of the term.
Transparent claims performance targets
The model is centred around recovery at work and ensures
the employer remains focused on providing support for
injured workers.
It is important to note that insurers do not expect to receive
an Insurance Premiums Order until mid-June 2015. This means
we are unable to provide premium projections based on these
legislative reforms.
More information
QBE will be holding information sessions regarding these
reforms – details will be announced shortly.
If you have any questions, please
contact your QBE representative or
view the WorkCover media release at
www.workcover.nsw.gov.au (newsmedia
release 18/5/15) about the reforms.
Newsletter
WorkCover WA announces
recommended premium rates
for 2015/16
People
On 9 April 2015 Michelle Roberts, CEO, WorkCover WA
announced a 4.7% decrease in the 2015/16 recommended
premium rates for Workers Compensation insurance.
Article by Ed Wilde, QBE Business
Relationship Manager, Victoria
Key Drivers
Thought leaders are successful at formulating innovative
ideas about the way in which we approach issues across
an industry.
The reduction in premium has been driven by:
• lower claim numbers for financial year 2013/14 and the
first half of 2014/15
• lower growth in claims with more than 60 days lost time
as a percentage of total claims
• wage growth in excess of inflation
• h
igher employment growth for the six months to 31
December 2015 compared with the six months to 31
December 2014
• decrease in future rate inflation
• decrease in contingency margin from 11% to 10%.
This is partially offset by:
• increase in the average claim size, including super
imposed inflation
• decreases in the discount rates used in the valuation.
• Minimum premiums
• The recommended minimum premium rates for the
2015/16 financial year are:
• householders policies – $80
• all other policies – $240
Effective date and next steps
New rates (which vary by class) are applicable for policies
effective 30 June 2015.
For a copy of the new rates for all classes with comparisons to
last year click here
Contact your Business Relationship Manager or Underwriter
for more details or visit www.workcover.wa.gov.au.
QBE Thought Leadership seminars
QBE is proud to offer our customers a complimentary
invitation to QBE’s Thought Leadership program during
the year. These seminars are an opportunity to connect
and network with leaders across the Work Health and
Safety Industry.
In May, QBE took its Thought Leadership seminars to
Bendigo in regional Victoria. Dan Feldman, Managing
Partner – HR Legal and Rick Phillips, Manager – Workplace HR
Solutions were the key speakers on the topic of ‘Preventing
discrimination, harassment and bullying in the workplace’.
The seminar was attended by 25 employer representatives.
While the seminar provided an important overview of
discrimination, harassment and bullying in the workplace,
the real value which made the session a success was the
way Dan and Rick engaged the participants in discussion
about scenarios they were currently experiencing in
their workplaces.
This approach ensured people left with an enhanced
understanding of the topic and food for thought on how to
approach challenges they were experiencing in the workplace.
The seminar was extremely well-received and plans are
underway to conduct a second seminar before the end of
the year.
For more information on the Thought
Leadership seminars, contact your Business
Relationship Manager.
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6
QBE Workers Compensation
Industry news
Motivational
interactions
workshops
Article by Mike Boyd, QBE OHS & Risk
Management, Victoria
The Personal Injury Education Foundation (PIEF) Motivational
Interactions workshop are designed to enable those involved
in injury management to develop the necessary skills to better
facilitate return to work outcomes using the Motivational
Interactions (MI) engagement strategy. An MI is a brief,
collaborative, person-centred intervention focussing on
behaviour change in clients.
Return to work employees help the individual to resolve
ambivalence about change. A number of research studies
support the need for evidence-based practices such as MI
in addressing motivational issues involved in obtaining and
maintaining better health or returning to employment, people
with injuries and disabilities.
PIEF was established by Australian and New Zealand accident
compensation regulators, insurers and claims management
organisations that shared the vision of creating leading
educational programs and events focused on the needs of
those working in the accident compensation industry.
The PIEF programs are designed to enrich and enhance the
range and depth of personal injury management skills, which
leads to better outcomes.
[Source for the above PIEF and MI information: Presentation
by the workshop presenter to Comcare ]
Motivational Interactions workshops
Upcoming dates and locations:
• Brisbane CBD 3 & 4 September
• Adelaide CBD 24 & 25 September
• Melbourne CBD 8 & 9 October
• Sydney CBD 14 & 15 October
Workshop costs:
PIEF member staff= $1350 (includes GST)
Non-member participants= $1450 (includes GST)
For more information
PIEF always has a wide range of courses,
events and activities on offer. Visit pief.com.
au to find out what’s coming up in your area.
Newsletter
Our community
Workplace health is worth the investment
Is your workplace healthy?
This was the straightforward question posed by the ACT Government’s Healthier Work team to Michael Ross, Manager of QBE Workers
Compensation in the ACT.
“It turned out that we were on the right track, but highlighted there was lots more we could do,” says Michael.
To add greater accountability to the activities the QBE Workers Compensation team were already doing, they created a work group to
help drive a 12-month plan of health and wellbeing options.
“A couple of the things we have done since developing our 12-month plan include partnering with a local charity where we do
volunteer work, organising walking groups during lunch breaks and supplying fresh fruit as snack options,” says Michael.
By agreeing to take on the healthier challenge, the group has received a Certificate of Recognition from the ACT Government’s
Healthier Work Department in acknowledgment of their commitment.
The team also participated in the Canberra Relay for Life – not only did the 15 walkers complete 599 laps (240km) in the 24 hours, they
also raised in excess of $3,100!
Congratulations to QBE Team Canberra.
7
QBE Australia
New South Wales
Victoria
Sydney
(02) 9375 4444
Lismore
(02) 6627 5999
Newcastle
(02) 4968 6444
Parramatta
(02) 8831 0322
Wollongong
(02) 4224 3487
ACT
Canberra
(03) 5226 8788
1800 817 820
Glen Waverley
(03) 9246 2444
1800 817 820
Shepparton
(03) 5823 6400
1800 807 628
Northern Territory
(02) 6201 3333
Tasmania
Darwin
(08) 8982 3877
South Australia
Hobart
(03) 6237 3866
Adelaide
Launceston
(03) 6332 0799
Western Australia
Victoria
J6935
Geelong
Melbourne
(03) 9246 2444
1800 817 820
Bendigo
(03) 5440 4700
1800 807 585
This newsletter is prepared exclusively for clients and intermediaries of QBE.
It provides general information only. It does not take into account matters
specific to your business. You should always seek independent professional
advice before acting upon anything in this newsletter. No part of this
publication can be reproduced without the written permission of
QBE Insurance (Australia) Limited ABN 78 003 191 035.
(08) 8213 5300
Perth
(08) 9213 6100
Bunbury
(08) 9721 4344
Self Insurance Services
(03) 9246 2446