The rapid growth of workers’ compensation claims for psychiatric injury means organisations need to act early to protect staff and mitigate risk.
McCullough Robertson Lawyers (McR) says employers need to be proactive about contesting claims at an early stage.
This includes preparing responsive submissions to the insurer.
“Workers’ compensation claims for psychological injuries have significantly increased,” James Lynagh, a Partner at McR, says in a recently-released article on the subject.
“In the four years up to 2022, Work Safe Queensland reported a 92 percent increase in accepted psychological injury claims and a further increase in the subsequent year.”
Mr Lynagh says that, if a worker’s claim is accepted, employers now have enhanced obligations to take reasonable steps in providing rehabilitation to the injured worker.
“Reasonable steps” under the Workers’ Compensation and Rehabilitation Act 2003 (Qld) include “necessary and reasonable suitable duties programs” and to cooperate with the insurer to provide rehabilitation.
The maximum penalty for non-compliance was increased to $83,450 last year.
“If an employer believes that a suitable duties program is not practicable, it must produce written evidence to the insurer of this or it may incur a penalty of $16,690 (prior to 23 August 2024 there was no penalty),” the McR article says.
“If the insurer is not satisfied with the employer’s evidence, it must provide the employer with reasons for that opinion and ‘reasonable opportunity’ for further submissions.”
Mr Lynagh says that if a worker has made a claim for psychiatric injury (or there are signs of one emerging), employers should take appropriate steps to:
- Ensure adequate support is provided (regular check ins, employee assistance programs, allowing the worker to take time off)
- Investigate and document the claim circumstances
- If there are concerns about the veracity of the claim, respond to the claim at an early stage by gathering all relevant information and documents and providing that to the insurer with submissions outlining the employer’s version of events. Often a claim is contestable on the basis that the injury was caused by the employer’s ‘reasonable management action’.
For further information or to read the full paper click here.
