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| Madam Speaker, I move that the bill be now read a second time. The bill addresses the remaining legislative changes to our workers compensation scheme that were recommended to government. Members may recall that 68 recommendations were made following an extensive review and considerable public and stakeholder consultation. The first stage was passed in this House in March 2015 and the change of name to the Return to Work Act commenced on 22 May 2015. The other changes from the first bill will commence on 1 July 2015. It will be clear from this bill that the review was focused on ensuring fair and balanced outcomes, and there are a number of improvements directed to ensuring better outcomes for injured workers. I would now like to bring to the attention of the House the key changes we are proposing in this bill. The most important outcome in workers compensation is to get injured workers back to suitable work. To help achieve this there will be a new requirement for the employer to produce a return to work plan for any injury that involves incapacity of more than 28 days. A return to work plan sets out the short- and long-term goals and takes into account the worker’s medical condition and any other factors that may affect a worker’s return to work. The requirement for a return to work plan exists in every jurisdiction and it is expected that this new process will help produce better outcomes and work outcomes. Another change to help provide a focus on return to work is that there will be a restriction on the ability of an employer to terminate the employment of a worker for a period of six months while the worker is totally or partially incapacitated. This change is also consistent with other jurisdictions. Another change to improve return to work outcomes is that employers will be required to pay for medical treatment during a deferral or a decision on a claim. When an insurer receives a claim they are required to make a decision to accept or dispute the claim. Sometimes the insurer needs more time and the legislation allows for a deferral of the decision for up to 56 days. Currently, the employer must pay for weekly benefits during the deferral but is not required to pay for medical treatment or rehabilitation unless the claim relates to mental stress. There will now be a requirement of the employer to pay for medical treatment and rehabilitation during deferral. This will ensure that a worker’s recovery is not compromised by lack of treatment or rehabilitation during the deferral period. The benefit will, however, exclude hospital inpatient and associated surgical costs and costs of interstate evacuations. These costs are high and it would be unreasonable to impose this cost on employers in circumstances where liability has not been accepted. A new benefit has also been introduced that will allow for family counselling for the worker, or the worker’s family. The psychological issues that can develop from a worker’s compensation claim can have a very poor effect on a worker’s self-esteem, the worker’s family and personal relationships. Access to this support may make a difference in the wellbeing of the worker and their family, and contribute to a faster return to work. The amount payable will be one-and-a-half times average weekly earnings, which is just over $2100 on current values. This benefit is, of course, over and above any treatment the injured worker needs if they develop a psychological condition that requires ongoing treatment. There is currently a defence available to employers for a mental injury claim based on reasonable, administrative action. It is proposed to replace the current formulation of administrative action with management action to improve guidance. The amendment provides a detailed explanation of what comprises management action and this will make the situation much clearer for employers and workers. There will also be a change that will affect what is known as journey claims. These claims relate to injuries that occur when a worker is travelling to or from work. The Northern Territory is one of few jurisdictions that continue to give workers compensation cover on a journey to or from work. Over 20 years ago, a decision was made to exclude injuries that occur as a result of accidents in motor vehicles on a journey to and from work. Since that time these injuries have been covered by Motor Accidents Compensation legislation. For many years employers have argued that they should not be responsible for any injury, to or from work, because they have no control over how a worker travels or the level of care exercised by the worker. This change will now exclude all journey claims, for example, walking to work or riding a bicycle will not be covered. Anyone walking or riding who is involved in an accident with a motor vehicle will be covered under the Motor Accidents Compensation scheme, as is currently the case. It is important to understand that this change does not impact on every journey. In some cases, the journey will be regarded as being in the course of employment, such as a paid call out, and these situations will continue to fall under workers’ compensation. The change to exclude journey claims brings the Northern Territory into line with most other jurisdictions. Another important change is that insurers will be required to give workers advanced notice of any legislated reductions or cessation of benefits. For example, the legislation currently requires weekly payments to be reduced to 75% after 26 weeks. This provision will ensure that those affected by a change in payments are aware it is happening, and will also ensure that notice is given in a timely manner. The review also looked at how the dispute resolution process could be improved. Our scheme currently provides for a mandatory mediation process before any matter can proceed to court. The recommendation was that workers should have access to paid, independent legal advice for matters being mediated. This bill therefore provides a benefit for a worker to have access to legal advice paid for by the insurer, where the mediator is of the opinion that legal representation will facilitate the mediation process. Examples of where this benefit might apply are complex matters or where the worker is disadvantaged by language, culture or life experience. The benefit for legal advice will only be available for matters that relate to new claim decisions or claims involving a reduction or cancellation of weekly compensation benefits, and will be capped at one times the average weekly earnings, which is currently $1417.20. Another enhancement of the mediation process will be that the injured worker will have the option of being represented by a more experienced family member, union representative or other experienced advocate to present their case, so long as the mediator considers that it will facilitate the conduct of the mediation. This change recognises that most mediations do not need the assistance of legal representation, but that claimants are not always best represented or equipped to represent themselves. This change is about giving claimants more choice and confidence about participating in mediation. Another important change in this bill is the ability to negotiate settlements for workers compensation claims. Currently about 33% of all claim payments in a year relate to settlements of claims. These settlements occur through contractual arrangements that are not recognised under legislation. For injured workers, settlement is an opportunity to move on from the compensation scheme. For employers and insurers it removes uncertainty over the cost of the claim. While government supports this change we do not want to see the parties lose focus on achieving positive return-to-work outcomes. Therefore settlements will usually not be possible until 104 weeks after the injury. However, sometimes exceptions need to apply such as in the case of a claim where liability is in dispute. To allow for this flexibility, settlements within 104 weeks will contain a six-month cooling-off period. During this period the injured worker will have the option to reconsider, renegotiate or withdraw from the settlement. It is important to understand that settlement cannot be forced on either party. All settlements require a negotiated agreement between the parties. It is this government’s intention that injured workers will not enter into settlements without being fully informed; therefore it will be mandatory that all settlements must include independent legal advice for the injured worker paid for by the employer. Furthermore any settlement must also include paid financial advice if the worker requests it. In any compensation system there will be differing opinions between employers, workers, insurance and medical practitioners. On occasions insurers have refused treatment even though they do not have in their possession any differing medical opinion from that of the claimant’s treating medical practitioner. This bill proposes that if treatment is to be denied the worker is given notice of the reasons and also advised of the process to dispute a decision to deny payment for treatment. If the decision is that the worker does not require the treatment then a medical opinion must be supplied to support that decision. The worker’s treating medical practitioner must also be notified of the decision and the reasons for that decision. The legislation currently contains what is known as deemed diseases. In a similar way to the presumptive legislation for firefighters the legislation already contains a list of diseases and occupations. If a worker who contracts one of these diseases works in a particular occupation, the disease is deemed to have been contracted at work. The current list will not have been reviewed for many years and it is known that the list will increase in number. To facilitate this change the schedule of diseases will be removed from the act and placed in regulation. I have now covered the major changes and will quickly touch on a number of changes that are more administrative in nature. There will be an improved process for claims by injured workers where the worker’s employer was not insured. There will also be more powers available to the Work Health Authority to ensure compliance with compulsory insurance provisions under the legislation, including the ability to stop work if an employer does not have a workers compensation policy. There will be provisions to discourage fraudulent conduct by parties in the claims process. There will also be a clear right for employers or insurers to recover compensation where there has been fraudulent or deliberately misleading behaviour. There will be an additional claims management option to provide for periodic agreements between the employer and the injured worker for payment of benefits in advance to allow workers to manage their own affairs relating to treatment, training and rehabilitation. Madam Speaker, this bill will contribute to achieving improved return-to-work outcomes and improve claims service for injured workers, as well as achieving consistency with other jurisdictions. The changes that have been included in this bill, together with those of the amending legislation passed in March 2015, represent a mix of changes that will influence costs and outcomes. These changes deliver a fair and affordable workers compensation scheme. I commend the bill to the House. Debate adjourned. |