Are You Obligated To Pay Workers Compensation For Contractors?

If a contractor is injured at your workplace what are your obligations for workers compensation?

Employers have workers compensation obligations to their employees, as well as some contractors. The eligibility of contractors depends on if they are legally ‘deemed workers’. ‘Deemed workers’ are defined by the injury management and workplace compensation laws of each state and territory. Each jurisdiction may define ‘deemed workers’ differently, the Act determines who is included and excluded by the legislation.

To distinguish between independent contractors who are ‘deemed workers’ and those that aren’t, tests are conducted. For example, a ‘deemed worker’ may have tools supplied by the employer, work exclusively for the employer, and is paid based on time.  If this were the case, the employer would be obligated to provide workers compensation and injury management to this contractor.

In Western Australia, WorkCover WA provides information regarding who may be classified as a ‘worker’ for workers compensation. Click here for information.

Therefore, whether an employer is obligated to provide workers compensation for contractors depends on the details of the relationship, the nature of the contractors’ work and the relevant state or territory legislation.

For assistance determining your work health and safety, and workers compensation obligations for contractors contact ProcessWorx on (08) 9316 9896 or enquiries@processworx.com.au

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Marisa Ross

HR Advisor

Marisa is an experienced and motivated HR professional with a strong HR generalist and business operations background with a focus on employee relations, performance management, leadership training & development, workers compensation & injury management, and employee retention. Marisa holds a Bachelor of Human Resource Management and a Bachelor of Behavioural Science with a minor in Counselling. Having worked in a variety of industries from SMEs to large blue-chip organisations, Marisa is passionate about enriching employee experience, employee retention, and building leadership capability in people management.

Aimee Grigson

Aimee Grigson

WHS Advisor

Aimee has a strong understanding of Workplace Health and Safety Legislation and standards and has extensive HSEQ experience in a number of industries. Aimee has a great ability to engage across all levels of organisation, including field teams, leadership and external stakeholders. Aimee ensures Health and Safety Management Systems are compliant to legislation, effectively implemented and understood by all. Aimee has a Certificate IV in Work Health and Safety and qualifications in auditing and incident investigations. Aimee is passionate about coaching and developing small businesses towards a positive safety culture.