3 Workers Compensation Facts for First-Time Employers

Posted on: 7 December 2017

In Australia, it is a statutory obligation for employers to offer monetary and other forms of compensation to workers injured at work. Furthermore, if a worker suffers any illness that is work-related, then the employer must compensate them. Therefore, if you are an entrepreneur running a small business, you need to be knowledgeable about your duties and rights in so far as workers compensation is concerned. This article highlights useful facts for first-time employers.

Type of Workers to Compensate

You must provide workers compensation for every employment category including full-time, casual and part-time workers. It is necessary that such a commitment be binding in the form of a written employment contract. Based on circumstances and nature of work, you might be forced to extend the compensation to contractors, their sub-contractors and labor-hire workers. Because you will be conducting business with labor-hire workers, you have a duty, as a hosting company, just as the hire company, to compensate them.

Notably, there have been different rulings on this matter, but what remains clear is that the host company and the hire company are obliged to coordinate, consult and cooperate with each other for the safety and well-being of such workers.

Federal and State Legislation

Every territory and state has its own workers compensation laws and enforcement agencies. However, federal legislation agencies oversee the general workers compensation scheme in Australia. For instance, if you are in Victoria and New South Wales, government agencies collaborate with private insurers to administer the compensation. In Queensland, the state government is responsible for workers insurance. A workplace compensation lawyer will advise your organization on the regulations of each state and territory, mainly if you operate between states.   


A workers compensation policy for employees, when done out of pocket, can have quite the effect on your company's bottom-line. Employers have to provide a safe workplace for workers, and that ensure their health and safety is maintained. However, it might not always be the case because of unforeseen circumstances such as accidents and illnesses at the place of work that lead to injuries. In such cases, your workers will have to be compensated, and thus, an insurance cover will protect your company from financial losses and penalties arising from failure to protect your workforce fully. Additionally, a first-time employer should consider covering assets for holistic protection.

For more information, reach out to a workers compensation lawyer in your area.


Corporate Law: How to Hire and Fire

Hello, my name is Jenny. I am happily married and have two kids. A few years ago, I started a company with my husband. At first, it was just the two of us working away from home, but as the business took off we had to think about hiring more staff. The company grew in size from 2 people to 4 people to 10 people. Once the number of staff reached double figures, I realised that I needed to make sure that I had legal paperwork and contracts in place so I could hire and fire staff if need be. We hired a lawyer to work with us so we could make sure our business was well within the law.