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Workplace Modernisation Changes

Published on Posted on 18 July 202424 July 2024

Please note that this post was written for Victorian audiences and the information within may not apply to other regions.

Recently, the government made changes to the Victorian WorkCover Legislation via the WorkCover Scheme Modernisation Act 2024 and these changes were implemented effective from March 31, 2024.

In summary, these changes predominantly affect WorkCover claims related to:

1.  New assessment criteria for work related stress claims; and
2.  A worker’s ability to access ongoing weekly payments beyond 130 weeks.

The new stress claim criteria only apply to claims lodged after 31 March 2024.

The new weekly payment criteria however will apply to any existing claim that will reach 130 weeks of weekly payments after 31 March 2024.

The recent changes are briefly summarised below:

Mental Injury Claims

• A new definition of mental injury has been outlined.
• A Medical practitioner (not a psychologist) must make a specific diagnosis of the mental injury suffered in accordance with the Diagnostic and Statistical Manual of Mental Disorder (DSM).
• The Mental injury must arise due to work being the predominant cause of the mental injury rather than just a significant contributing factor towards it.
• A WorkCover claim will not be accepted for claims due to work related stress or burnout which is typical or could reasonably be expected during normal work duties.

We note that WorkCover stress claims are still allowed for workers who experience traumatic events in the course of their usual employment (such as first responders etc).

There is no change to the ability to make bullying claims so long as a worker is exposed to repeated unreasonable behaviour that is likely to cause a risk of mental harm.

Workers are still entitled to 13 weeks of provisional payments towards treatment regardless of whether the claim is accepted or not.

Weekly Payments

After 31^st of March 2024, a worker’s entitlement to weekly payments ceases at the date of the second entitlement period (after 130 weeks), unless it is deemed that the worker has both:

• No current work capacity, and therefore is likely to indefinitely continue to have no current capacity for work, and
• Comprises of an impairment rating of greater than 20% whole person impairment (WPI) under the AMA Guides or GEPIC.

This means that most workers, will struggle to meet the test which allows weekly payments after 130 weeks.

We note that:

• Physical and psychological injuries cannot be combined to reach the total WPI.
• Physical injuries can be combined but only for injures sustained in the same work incident.
• A worker’s ongoing capacity will be reviewed every 2 years.
• Any dispute regarding the assessment will be referred to the Medical Panel.
• This >20% WPI score also applies to weekly payments post-surgery beyond 130 weeks.
• If a worker has previously completed their impairment benefits (IB) claim that assessment is binding and cannot be re-assessed regardless of any further deterioration in the worker’s condition.
• If a worker is approaching 130 weeks and has not completed an IB claim, the Insurer can:
  • Arrange for an assessment to be undertaken;
  • Determine that the worker will clearly not meet >20% and/or their condition is not permanent and therefore terminate the weekly payments without an assessment; or
  • Issue an interim notice if the worker is unable to be assessed at that time.
• A worker may not be able to be assessed if they are:
  • Living overseas.
  • Under 18 years of age.
  • Their injury is unstable and unable to accurately be assessed at that time.
  • The worker has a progressive disease which is unlikely to stabilise.
  • The information required to make an assessment is not available.

An interim decision can be disputed if the above circumstances change.

These changes were implemented on 31^st March 2024.

If you have any queries or concerns regarding these changes, please contact us for more detailed advice.