Mastering workers compensation

With workers compensation likely being your biggest insurance bill, understanding the intricacies of it is essential to ensure compliance, manage costs effectively, and provide the necessary support for your workforce. Here are important strategies to getting it right:

1. Identify your deemed workers

From internal consultants to on-hired, pay-as-you-go employees, sole traders, and independent contractors, your entire workforce falls under consideration. However, each state and territory have a distinct criteria and definitions for deemed workers. You have statutory obligations to provide workers compensation for all deemed workers, which can be any of the categories mentioned above.

The test for identifying a deemed worker is not straightforward and again, will differ between states and territories, although there are some consistencies, correctly identifying a deemed worker is a critical obligation to master workers compensation insurance.

We can support you and will work with your workers compensation insurer(s) to provide certainty that you are appropriately declaring wages for all deemed workers.

2. Navigating workers compensation occupation codes (ANZSIC)

Selecting the appropriate workers compensation occupation/classification code, ANZSIC, is a critical step. Insurers vary in their approach when determining your appropriate ANZSIC codes, some applying the occupation of the host employer, others the occupation of the individual worker.

We can support you in reviewing your workforce as well as your host employers’ industries and work with your insurer(s) to determine the most appropriate ANZSIC code. Getting this right ensures that you can appropriately factor this cost into your hourly rates.

Multi-industry agencies

Expanding your recruitment agency from white-collar professional placements into high-risk industries such as manual blue-collar, or nursing/medical practitioners, and vice versa is a bold and potentially rewarding move. However, venturing between these sectors demands careful consideration of the associated risks and challenges, particularly in securing the right insurance coverage.

It’s important to know that not all insurance companies are equipped to handle the unique intricacies of each of these industries, making the selection of the right insurance partner a critical component of future proofing your agency. Engaging with a recruitment specialist insurance broker gives you an access into the leading Australian insurance companies and will make the process more manageable.

For more information on this topic, contact Mark Laudrum on 0428 761 352 or mlaudrum@pno.com.au, to discuss further. Our team has years of collective experience, particularly in the insurance space tailored for recruitment, staffing and workforce agencies, and we’d be more than happy to assist!