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.