Determining Workers’ Compensation Coverage
The States and Territories have come up with uniform tests to determine which State or Territory’s workers’ compensation coverage responds to a particular accident. It also saves employers, in some circumstances, from having to obtain insurance in multiple States. The tests are “cascading” – if one test gives a clear answer, then that stops the enquiry. But if the answer is unclear, you go down to another test. It relates to the employment in which someone is injured, not to where the worker lives or their employment overall for a number of employers. A temporary transfer to one State for less than six months will not change the determination as to the usual employment situation.
For example, if you:
- Lived in Tweed Heads;
- Drove trucks for a company with a depot at Coolangatta;
- Performed some truck maintenance work for a second company at Tweed Heads;
- The amount of driving you did for the first company was roughly equally spread between New South Wales and Queensland; and
- You were injured while driving for the first company.
Key Considerations
- The fact that you live in Tweed Heads is irrelevant.
- The maintenance work which you do for the second company is not relevant to the enquiry.
- The first test is where you normally work for the company in whose employment you are injured. As that may be unclear, a second test is employed, which is where you were normally based for that company.
- As that is in Queensland, you would be covered by Queensland workers’ compensation legislation, and the Queensland workers’ compensation policy would cover your employer.
Additional Tests
After the “State you usually work in” and the “State where you are based” tests, the third test is where your employer’s principal place of business is. If that test does not resolve the question, then if you work on a ship, the fourth test is where the ship is registered. If none of these tests resolve the issue, then you are covered by the legislation and policy applicable to the State or Territory in which you are injured, provided there isn’t coverage in another jurisdiction.
Conclusion
Determining workers’ compensation coverage depends on a cascading series of tests, starting with where you normally work and where you are based. If those factors are unclear, further tests such as the employer’s principal place of business or ship registration may apply. Ensuring the correct coverage is crucial for both workers and employers to comply with the appropriate State or Territory legislation.
If you are unsure about your workers’ compensation coverage or need assistance with a claim, it is advisable to speak with an experienced workers’ compensation lawyer. A lawyer can help you understand your rights, navigate complex legal requirements, and ensure you receive the appropriate coverage and benefits.
