David Sagar - State View VIC

RTW State View - Victoria

Agenda

1. VIC RTW performance

2. Why RTW

3. Employer and workers obligations

4. What next

Background – Scheme RTW performance

Background – Scheme RTW performance

Victorian RTW performance – it depends on what gets measured

Safework Australia - Returned to Work Rate 2012/13 by country and Australian jurisdiction) (%)

Background – Scheme RTW performance

Victorian RTW performance – it depends on what gets measured

Safework Australia - Current Return to Work Rate 2012/13 by country and Australian jurisdiction (%)

Background – Scheme RTW performance

Victorian RTW performance – it depends on what gets measured

• RTW Index – VWA corporate KPI

• What is it?

– A measure of whether a worker is at work or not 182 days post agent received date

– Current performance 21.4% (workers not at work) up/down from 21.9% or 0.5% improvement

– 2017 Target is for a 10 – 15% improvement in number of people not at work

Background – Scheme RTW performance

• Rehabilitation provider performance – SE significantly improved

OES RTW scorecard

40.00%

42.00%

44.00%

46.00%

48.00%

50.00%

52.00%

54.00%

Apr-

11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-

11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oct-

12

Nov-1

2

Dec-1

2

Jan-1

3

OES OES YTD target

Background – Scheme RTW performance

• Rehabilitation provider performance – NE RTW rates flat or deteriorating

NES RTW scorecard

17.00%

17.50%

18.00%

18.50%

19.00%

19.50%

20.00%

20.50%

21.00%

21.50%

Apr-

11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-

11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oct-

12

Nov-1

2

Dec-1

2

Jan-1

3

NES NES YTD target

Background – Scheme RTW performance

• RTW performance some other observations

• Stress incidence increased significantly but stabilised more recently

– 8 – 10% of all claims but 30% of longer tail

• RTW rates for stress improved

• RTW rates for SMEs continue to be lower

• Regional appears to be significantly harder – especially for NE

• Victoria now has the highest unemployment rate in mainland

Why RTW

• Health Benefits of work

Why RTW

• Health Benefits of work

Why RTW

• Premium impact

Why RTW

Premium impact

• Premium = costs (wages) x industry rate x remuneration

If large enough

• Premium = costs (wages) x industry rate x remuneration x experience

Costs = actuals + estimate (Statistical case estimate (SCE))

• SCE is impacted by wage and medical payments as well as legal, impairment, common law and IME payments – up and down

Why RTW

Premium impact - so the best thing you can do is get workers back to work

Why RTW - Obligations

RTW Inspectorate

• Worksafe now have a field force of RTW Inspectors

– Provide advice and information

– Assist meet obligations

– Enforce the law

• Targeted interventions – e.g. certified fit but no RTW

• Sanctions can apply up to

– 180 penalty units for an individual

– 900 penalty units for a business

Why RTW - Obligations

RTW Inspectorate

• Worksafe now have a field force of RTW Inspectors

– Provide advice and information

– Assist meet obligations

– Enforce the law

• Targeted interventions – e.g. certified fit but no RTW

• Sanctions can apply up to

– $27,000 for an individual

– $132,849 for a business

Obligations - Employer

The Hanks changes in 2010/11 saw better acknowledgement of the activities that lead to better RTW outcomes.

• Plan for your worker’s return to work

• Consult about a worker’s return to work

• Nominate and appoint a RTW Coordinator

• Make RTW information available

• Cooperate with labour hire employers

• Provide employment (52 week obligation)

• s194 – s 198A of the Accident Compensation Act

• 103 – 108 of the Workplace Injury Rehabilitation and Compensation Act 2013 (WIRC)

Obligations

Obligations - Worker

The Hanks changes in 2010/11 saw better acknowledgement of the activities that lead to better RTW outcomes.

• Participate in planning for return to work

• Use occupational rehabilitation services

• Participate in assessments

• Return to work

• Participate in an interview

• Notify of return to work

• s200 - 296 of the Accident Compensation Act

• 111 – 117 of the Workplace Injury Rehabilitation and Compensation Act 2013 (WIRC)

What next – for Victoria

• Focus on RTW index – watch for unintended consequences

• Sustained high unemployment - will make your long term claims harder to redeploy

• Continue closures downsizing, layoffs etc. – these people are hard to redeploy

• New models for Workplace rehabilitation

– ? Some help to get detached workers ready for RTW

• Possible change of Government?

Summary

• Know and use the legislation – meet your obligations

• RTW at all costs

• Utilise Occupational Rehabilitation for your hard cases

Questions and Discussion