New definition of "worker" in workers compensation law in Queensland
Tuesday, 30 July 2013
Changes to the definition of "worker" in the Workers Compensation and Rehabilitation Act 2003 ("the Act") commenced on 1 July 2013.
These changes have altered the definition of "worker" to effectively exclude subcontractors. The changes bring the definition into line with the definition of "worker" under the Commonwealth income taxation legislation. Specifically, the definition of "worker" in Section 11 of the Act has been amended to be "a person who works under a contract" and "is an employee for the purpose of assessment for PAYG withholding" under the Commonwealth income taxation legislation.
The practical impact of this change is that workers with their own ABN, such as subcontractors, will be excluded from being able to make claims for compensation under the Act. A person is generally considered a subcontractor if:
They operate their own business and are responsible for reporting income for tax purposes;
They are paid pursuant to a quote or based on the result achieved;
They provide most or all of the tools or equipment needed to perform the work;
They are free to contract with a third party to complete the work;
They are able to decide the method of work.
The changes have meant that both employers and subcontractors need to reassess the insurance that they hold to ensure they are adequately protected in case of injury or claims.
Employers should have public liability insurance that is adequate to protect themselves from common law claims by subcontractors for workplace accidents and injuries. Most employers will already hold a policy of public liability insurance, however, it will be crucial that the insurance policies are reviewed to ensure they will cover these circumstances.
Subcontractors will also need to obtain personal insurance, such as income protection insurance, to ensure that they are covered if they are injured in workplace accidents.
We have an experienced state-wide insurance department who can provide legal advice on all aspects of insurance and injury law. If you would like further information on this issue, or any other issues, do not hesitate to contact one of our offices.
Source: Mondaq
