What is the re-employment incentive scheme?
Worker eligibility
Employer eligibility
Incentives
Other benefits and rehabilitation costs
WorkCover levy payment
What is the re-employment incentive scheme?
It provides a monetary benefit to employers that employ a worker who has suffered a compensable injury and cannot return to their pre-injury employer.
Worker eligibility
Any worker who has capacity to undertake work and is in receipt of income maintenance is eligible providing that the possibility of their return to pre-injury employment has been explored and found to be impractical.
Employer eligibility
Incentives are available to all employers in South Australia (including all self-insured employers) who can offer safe and suitable employment to an injured worker. Employers must be registered with WorkCover and be paying the appropriate levy.
Employment that involves ‘share of take’ arrangements, commission sales, partnerships and subcontractor arrangements or employment by immediate family members or partners is not eligible for the incentives.
Incentives
Employers who offer paid employment to workers that meet the eligibility criteria will receive incentives as follows:
- 75 per cent of gross wages paid in the first three months of employment
- 40 per cent of gross wages paid for the subsequent three months of employment
- A retention bonus of 10 per cent of gross wages paid if the placement continues beyond 12 months. The bonus is capped at a maximum of $2000.00.
When calculating gross wages for the purpose of receiving incentives, employers must exclude allowances, over-time, superannuation, commissions and recoverable compensation paid to the worker from any calculation.
In addition the employer is exempt from paying the first two weeks wages for the duration of the worker’s employment in the event of the worker suffering an aggravation of the pre-existing compensable disability. An employer is liable for the first two weeks wages on any new injuries suffered in their employment.
Other benefits and rehabilitation costs
Previously costs for a worker in a re-employment placement such as retraining or workplace modifications, have been paid as part of a benefit under this scheme once they were approved by a placement consultant in establishing a placement agreement with an employer.
Under the new provision, rehabilitation coordinators will need to assess the requirement of any service or item that will assist in the worker obtaining or retaining suitable alternate employment.
Pursuant to s26(3)of the Act, a rehabilitation program may cover the cost of training or retraining a worker, the provision of equipment, facilities or services to assist a worker in the home or workplace or any other cost that assists in the rehabilitation of a worker. These costs need to be on a program or plan and require case manager approval for payment once it has been established that the item or service is required and of benefit in rehabilitating a worker back to work or the community. These services have always been available to the worker and are not exclusive to a re-employment incentive scheme.
WorkCover levy payment
The gross remuneration paid as a benefit to the worker must be included in any levy calculation the employer makes. Remuneration is the gross wages paid to the worker, including superannuation and any other payment that has a quantifiable benefit eg, allowances, bonuses, commissions etc. Workers who attract the re-employment incentives are subject to the same levy rate as any other worker for the purposes of calculating levy payments. Employers should contact WorkCover on 13 18 55 if they have questions about calculating their levy payments.