Friday, 16 May 2025
Rushed workers comp changes need compromise and a pause
Today’s parliamentary Inquiry into rushed and unbalanced new workers compensation laws will be urged to recommend a pause for broader consultation and key changes to legislation.
President of the Law Society of NSW Jennifer Ball recognised that the workers compensation system is under pressure and needs reform but said some proposed changes risk stripping the rights of some of the community’s most vulnerable people, while imposing extra costs on business.
“There’s no doubt the sustainability of the current scheme needs addressing, but that should not be at the cost of those people who have sustained serious and debilitating psychological injuries on the job,” Ms Ball said.
“The proposed increase of the ‘whole person impairment’ (WPI) threshold to 31 percent will conceivably exclude nearly all workers with psychological injury from making a claim. To reach 31 percent WPI, a person would need to demonstrate they’re unable to live alone, care for dependants, or to function in society,” Ms Ball said.
The Law Society will propose a compromise at today’s hearing that would help address concerns over sustainability of the scheme, while preventing the effective shuttering of the scheme to workers with serious psychological injuries.
“We believe that changing the WPI threshold to 21 percent would ensure that many workers generally recognised by community standards as being severely impacted by mental ill-health would be able to make a claim, while easing upward pressure on workers compensation insurance premiums,” Ms Ball said.
“Following the present truncated and inadequate consultation process, the Law Society urges the NSW Government to pause the progression of the Workers Compensation Legislation Amendment Bill 2025 at the conclusion of today’s hearing to permit broader consultation. This will help minimise unintended consequences and ensure the proposed changes are based on strong evidence.”
“Many injured workers could face unacceptable delays and even an insurmountable barrier to compensation if before being allowed to claim compensation, they are required to prove before a Court, Tribunal or Commission, that they have sustained psychological injury through sexual harassment, racial harassment or bullying. This will also create more resourcing pressure on the justice system,” Ms Ball said.
“The Law Society is nevertheless grateful for the opportunity to appear at the Inquiry to reinforce our concerns with the several flaws in the Bill and to help identity how the Government can pursue a more sustainable system.”
Lawyers from the Law Society’s Injury Compensation and Employment Law Committees have contributed to the organisation’s submission to today’s Inquiry. These lawyers have recognised expertise in representing insurers, employers and workers in compensation matters.
MEDIA CONTACT:
Damien Smith | Director, Media and Public Relations
The Law Society of New South Wales
M: +61 417 788 947 | E: [email protected]