- September 16th, 2015
If you are an employer, you have a great deal to think about. From budgets to advertising to customer satisfaction and everything in between, running a business or organisation is a lot of work.
It becomes even more complex if you have a team of employees. When running a successful enterprise, it is important to invest time and money into choosing the proper insurance covers to protect the various aspects of your work. These provide not only peace of mind, but real security and assistance in the face of the unexpected. For employers, one of the most vital types of insurance cover to have is workers compensation.
Which Employers Need Workers Compensation?
Workers compensation insurance is not only important, it is, in the majority of cases, also required by law. Such policies are protective measures for both an employer and their staff. Employees can feel confident knowing that in case of an injury or work-related illness, they will not be saddled with handling their complete medical costs or experience a total loss of income. In New South Wales, it is a requirement for all employers to hold a workers compensation policy. However, if a business or organisation pays annual wages of $7500 or less, is not part of an industry which requires workers compensation, and also does not have apprentices or trainees in their employment, they are considered an exempt employer. These organisations are not required to have workers compensation policies, but many still opt to of their own volition.
What is Workers Compensation?
Without workers compensation, if an employee is injured on the job or falls ill due to a work-related incident, you as the employer may be held liable. This means you could be responsible for paying their medical expenses, rehabilitation bills, and more. You could also find yourself in the middle of unpleasant and costly legal concerns.
Workers compensation insurance is a necessity, and especially so if your industry has potential risks and safety hazards. A policy covers your employees in the event that they experience a work-related injury or develop a work-related illness. When these take place, the injured or affected employee can make a claim on their employer’s workers compensation policy. When approved, employee claims can cover reasonable medical expenses related to the injury, wage compensation for various periods that the employee is unable to work, or a lump sum to the employee or dependents in the most extreme of circumstances (a permanent impairment, disability, or death).
Obligations for the Employer
When it comes to workers compensation, it is important for employers to be aware of their obligations. Employers who fail to carry a policy can be dealt severe penalties and hefty fines. It is also vital to keep on top of policy premiums in order to avoid late fees.
In the case of a workplace injury, as the employer, you are responsible for providing immediate care and first aid. If the injury is serious, you must ensure your employee is taken to hospital and receives appropriate care. Within 48 hours or less, notify your insurer about the occurrence and record the specifics in your employer register of injuries. When an injured employee is healed and ready to return to work, the employer must provide a return-to- work program to assist the employee. If circumstances have changed, the employer is also required to provide some type of suitable work for the employee following their return.
For more information visit WorkCover.
All employees of On Line Recruitment and Labour Hire are covered with the relevant Workers Compensation Insurance.