Workers compensation is a form of insurance that employers are required to take out for their workers. If an employee is injured on the job, they will usually be covered by their workers comp, allowing them to receive income replacement payments while they rest and recover from their injuries.

However, Australian workers compensation laws aren’t always as simple as they seem. Cases where injured employees have to use a commercial lawyer or legal advisor to attempt to gain workers comp are relatively common, and many employers and insurers are reluctant to approve and pay workers comp without a fight.

With this in mind, this article will provide a quick overview of workers compensation in Australia and when you’re eligible for it. Note that workers comp laws vary according to your state, so this article is intended purely as a guide.

Who Is Covered By Workers Compensation?

Basically, anyone who is employed directly by another person, business or commercial entity should be covered by workers compensation insurance. This includes people on full time, part time and casual contracts, as well as people working on piece rate or commission contracts. In some cases, contractors and subcontractors are also covered, but not always.

On the other hand, someone who works for themselves can’t cover themselves with workers compensation insurance. This applies to people like freelancers, tradespeople running a business and other self-employed people working under an ABN.

(more…)